Are Mortgage Rate Upticks Affecting Costa Mesa Homes for Sale?
One puzzle for homeowners deciding whether now is the time to put their Costa Mesa homes up for sale is whether rising mortgage rates will measurably slow the response. It’s far from certain that Costa Mesa home loan rates will continue to rise as we go forward—but it’s likely enough. The picture becomes even less predictable if you add in the notion that it’s far from certain that higher borrowing rates will necessarily dampen buyer activity.
The reason for the hemming and hawing on this point was laid out by realtor.com’s Sharon Lurye earlier this month. She points out that this has already been a “paradigm-breaking” real estate market—one with the promise of more common-sense-busting developments to come.
Granted, it’s a given that today’s higher mortgage rates make homebuying more expensive “for many, as their monthly mortgage payments get bigger.” That dictates that fewer buyers will be inclined (or even able) to enter the market. Fewer buyers lessen demand—definitely not good for “suppliers”—the homeowners who might or might not list their properties.
How could such circumstances even possibly encourage sellers? Among factors increasing the likelihood of brisk sales is that builders have been unable to ramp up production for a number of reasons, creating what Lurye calls a “dire” housing shortage. Too, there’s what is actually taking place in the markets all over the country. One California mortgage company owner says, “With how hot the market is, the rising rates will only slightly affect housing prices.”
And then, there’s this: in the wider financial view, those rising rates— “even in the 3% range”—are very low. Tellingly, to date, the rate increases have not even kept pace with the current rate of inflation. “That means that banks aren’t even charging enough in interest to make up for the value that money loses over time.”
In other words, some prospective buyers are considering today’s premium prices as only one part of a greater picture that continues to be uniquely inviting—and which is unlikely to last. For some buyers, that’s a true motivator—as well as for homeowners considering putting their own Costa Mesa homes up for sale. For both buyers and sellers, taking advantage of today’s unique real estate market begins with a call to (you guessed it): us!
We are built on a philosophy of Heritage & Hustle. The L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission is to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. The L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, The L3 has grown to a full staff of 25 serving over 300 clients a year. The L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has The L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at info@thel3.com
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