This is our current MicroMarket update for Costa Mesa real estate for the close of 2011. I started doing these updates because the local media’s natural trend is to over-focus on national trends, when in fact Costa Mesa real estate usually acts quite differently.
A MicroMarket report in Costa Mesa real estate simply gives you a look at what is really going on in Costa Mesa from a respected broker. I will give you the no “BS” numbers, and we then compare those numbers to what you hear about in the national news or the local
Daily Pilot or
Orange County Register. It always seems like the broader media markets paint the picture for everyone, when in fact it really helps to stay local to find out what is really going on here in Costa Mesa real estate.
Costa Mesa MicroMarket Update
Just the numbers, please!
Alright already, here they are for the last three months in Costa Mesa:
Sept 2001
- New Listings September 2011: 75
- New Homes Under Contract September 2011: 19
- Closed Sales September 2011: 61
- Avg. Sale Price: $516,760
October 2011
- New Listings October 2011: 66
- New Homes Under Contract October 2011: 16
- Closed Sales October 2011: 55
- Avg. Sale Price: $495,147
November 2011
- New Listings November 2011: 65
- New Homes Under Contract November 2011: 28
- Closed Sales November 2011: 44
- Avg. Sale Price: $470,634
The numbers for Costa Mesa real estate are pretty even across the board. We normally see a typical waning of activity in the fall of the year, and these numbers are no different than other years in terms of declining activity approaching holidays and Christmas time.
The trend has pricing still decreasing, even though interest rates are very low and have remained steady for the majority of 2011. If you look back further, say a year in Costa Mesa real estate, you will definitely see that we have given back about $50,000 in entry level housing and certainly more than that in the upper ends of Costa Mesa real estate.
Trends
What are the trends in pricing, activity, and other goings on? It has definitely become more of a
buyer’s market; there are not multiple offers on many listings. There are price reductions in most of the inventory that has sat on the market for more than 4 months. The lower end of the price spectrum (homes below $499,000 and condos below $399,000) is seeing much more activity, especially in
East Side Costa Mesa. The upper end of the price spectrum is certainly a good deal slower, with few showings per week. Homes with flaws (location, needing major improvements) are sitting for long periods of time, up to one year in certain places.
The upper end of the price spectrum has really come down quite a bit, even with the extraordinarily low interest rates (4.0% as of this writing). For instance, homes in the Lower Birds section of Mesa Verde were easily in the mid $800,000 range last year while this year there are quite a few to choose from in the upper $600,000s and the $700,000 range.
Futures?
The numbers don’t quite support it yet, but I definitely think the buyer’s market trend will continue in Costa Mesa over the next six month period. Seller’s who want to stay ahead of where this market is going will be smart to adjust pricing ahead of the downward market trend. Sellers who have homes that are exceptionally well done/remodeled can expect to achieve sales better than market rate because that type of inventory has not been ample this year.
All data is believed to be accurate, but not verified, and is courtesy of the CRMLS of Southern California.
