Costa Mesa Homes Still Affordable

Are you wondering if Costa Mesa homes are still affordable right now? One of my favorite websites, Trulia.com, just published their quarterly Buy vs. Rent affordability chart which analyzes coast to coast rental and sales data. They did not specifically look at Costa Mesa Homes for sale or rent, but did look at our region (Los Angeles, Long Beach, and San Diego) as a whole. The results are interesting- generally they are saying that renting might be less expensive right now, but it would “probably” be better to buy.

Let’s break it down right now, and try to compare that to what you might get for rent in the Costa Mesa rental market, to see if Costa Mesa Homes Still Affordable.

There are 56 Costa Mesa homes and condos for sale right now, and about 19 similar homes and condos for lease currently (according to the MLS). The lease prices range from about $1800 to about $3000, with the average asking price for rent at about $2400/month. The homes in my sample are between $400,000 and $500,000.

With about 3.5% as a down payment (using FHA standards), a $400,000 home or condo would cost you about the same on a monthly basis for a Costa Mesa home. The mortgage payment is about $2050, and you have to of course add in taxes and insurance expenses. it would actually be a little more expensive each month on paper, but once the Mortgage interest deduction is calculated in, you would save money. There will be a tipping point depending what type of financing you choose to use; the less you use as a down payment and the higher the price of the home, the less affordable purchasing the home will be. however, if you were to put 20% down right now on a home, it would considerably more affordable to buy because interest rates are so low currently.

Considering a purchase of a Costa Mesa home right now? I have a wonderful spreadsheet which helps make a decision based on your income and ability to buy vs. rent. Feel free to ask me for a copy at Email me or call me at (714) 743-9882.