Huge Increases This Year in Costa Mesa

Colin Delaney August 26, 2013

Can Costa Mesa Go Higher?

The median price of an existing Orange County house is up 22.5% from last July. The median price of an existing Orange County house soared to $675,000 in July, up 22.5% from last July, the California Association of Realtors reported.
 
The price was $551,160 in July 2012 and $661,740 in June of this year. Home resales in the county increased 5.2% over a year ago, the association said. Statewide, the median price for an existing, single-family detached home was $433,760, up 29.8% from $334,220 in July 2012.California had a 1.5% year-over-year sales bump last month. It was the first annual increase in sales for a month since December 2012.

“The spike in interest rates in June prompted homebuyers to delay escrow closings in hopes that rates would fall back,” said Don Faught, the association’s president. “As buyers recognized rates had stabilized, they moved forward to close escrow, which lifted July’s sales from both the previous month and year.”
 

Huge Increases This Year in Costa Mesa 

A limited supply of homes for sale drove price increases this year, especially in coastal areas, said Leslie Appleton-Young, the association’s vice president and chief economist. Appleton-Young said prices should continue to grow but at a slower pace. “Inventory levels are starting to build in some areas as price gains free up previously underwater homes and encourage homeowners reluctant to list because of the scarcity of homes to purchase,” she said.
 
The flipside of the above good news is that Trulia called Orange County the most overvalued place in the nation for home prices. Trulia economist Jed Kolko said the county is 12% overvalued when comparing current prices with historical prices, incomes and rents. California took five spots on Trulia’s Top 10 list nationwide, including Los Angeles, San Francisco, Oakland and San Jose.
 
So what do you think? Have we hit our peak yet in Costa Mesa real estate?
 
I think we are in the middle of a typical August, and the real estate market always shows signs of slowing prior to the fall season in Costa Mesa real estate.

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