Happy 2021! I hope all of your Costa Mesa real estate dreams came true, no matter how bad 2020 was for you.
It’s my favorite time of year when I get a chance to look back on
predictions for the year that is behind us take stock of how I thought the year was going to turn out and give the Author a grade on his performance.
1. Something’s Gotta Give
I thought that the runup was unprecedented, and accordingly, something would slow down the Costa Mesa real estate market. Well, I was wrong! I thought something political or global would change the market. The global pandemic hit (Couldn’t have seen that coming!!) but the Costa Mesa real estate market actually went up quite a bit higher. The piece that I did actually get right was this: If the Fed lowers interest rates below 3.25%, then the market would continue to move upwards as it did. The low inventory and historic low interest rates of 2.5% moved the market big time.
2. Prices
I thought prices had to stop. I was wrong again! We actually had 9-15% price appreciation depending where and what type of real estate you have in Costa Mesa.
3. Low Rates
Well, I got the “low” part right, but I was forecasting rates in the 3.5% band but just didn’t seem to see the pandemic coming and how the Fed was going to respond to it. Rates of 2.5% were truly historic and unforeseen at the beginning of the year.
4. Flipper’s Get Stuck
I thought that as prices would start to recede, the market would show it’s teeth and catch a few flippers holding homes at prices that are too high to make a good profit. That didn’t happen – low rates and low inventory helped all boats rise in this tide. The flips that I saw that were even done poorly or with mistakes sold. Maybe not for the profit that was expected, but they all sold. Interestingly enough I saw a few people buy the flipped home then put more money into it!
5. Local Economy Steady
I forecasted the local economy continuing to be steady and run well through 2020. Again, Covid-19 tore apart this prediction. The economy actually held together pretty well locally for how bad the pandemic got forward the end of the year.
6. Time’s up for School
Hallelujah, I actually nailed one of my predictions. Should have put this in the number one slot last year!! As expected, the neighboring communities in Huntington Beach stopped allowing transfers of students in the elementary and junior high levels, forcing some parents to make either move decisions, or school decisions.
7. Remodeled Gold Mine
Another winning prediction – I said that people would continue to pay big bucks for the remodeled home, even for more than they should be selling for now. The fixer is quietly becoming a thing of the past. And it was true. Remodeled homes fetched big bucks and had multiple offers in many Costa Mesa real estate communities.
How about the grade for the author? I am pretty realistic with this part of things. I have given myself B’s and B minuses in the past. This year has got to be a C- at best, but hey, I sure didn’t see that pandemic coming! And you know what? Even if you told me the pandemic was coming, it seems incredibly improbable that Costa Mesa real estate should have been flying off the shelves as it did.
