It’s time to see how we did, let’s look back at our 2019 Costa Mesa Real Estate Predictions and see how the year shook out for buyers, sellers, and the Costa Mesa real estate market in general with grades on our success:
-
No inventory is the New Norm – A+ here. Inventory levels were low, low, low and it went all year long, even into the traditionally slower months of October, November and December.
-
Stock Market Bouncing Ball? Another A for this category. The stock market went up to record levels by the end of the year, then slightly gave back a bit. Costa Mesa real estate is enjoying the fruits of the market's rise with real estate prices following the stock market up.
-
OC Economy Chugs Along – The local economy is on fire. Lowest records of local unemployment and far lower than other metro areas around the country. A for the writer again.
-
Interest Rates Rise Slightly – They did rise a bit, but they have remained stable over 2019 and did not have a great effect on the market as a whole. B-
-
Sky High Rents Continue – Yes, rents are maintained and getting higher! If you can even find a rental property that is. People aren’t moving once they lock down a rental. A
-
Sellers Exiting California at All-Time Highs – Yes, lots of activity of people moving out of state to take advantage of lower prices in other states. If they moved out in early 2019, they missed a big run of prices in Costa Mesa real estate actually pushing higher at the tail end of 2019.
-
Mortgage Creativity – Yes, lenders continue to be more relaxed and more interest only and 7/1 Arms are being pushed as prices continue to skyrocket. But lenders don’t get their wish and not as many creative types of financing programs become available. C
-
Late Summer is the New Fall – Nope! I swung and missed on this one. I expected a late summer slowdown in August but that just was not the case. Because of a significant lack of inventory, sales kept chugging along with little change. C-
-
Shocking Prices – Yup! A+. Some of the prices in Eastside Costa Mesa are over $2,000,000, and some ordinary homes in Mesa Verde for more than $1,600,000 pushed the Costa Mesa real estate market to places never seen before.
-
Level and Cool – I got it wrong. C-. The market just continued to crush it all the way through early December. Rates stayed lower than I expected which continued to fuel an already hot market. Who knows? Maybe next year we finally see a bit of a slowdown. I would give myself a B+ overall, I got a lot of my predictions correct, but I don’t think I could have seen the longevity of this market.