Much of the media spent last week exploring the topic of Artificial Intelligence—with mixed opinions about whether it will turn out to be a boon or a curse to Mankind. Much of the discussion focused on AI-generated writing, which some students were already trying to pass off as the product of their own research.

One example was a robotic essay answering the question, “What are the chances that residential real estate will collapse?” The speedily-generated answer was an almost human-sounding regurgitation of what most experts thought: not likely. Local homeowners who were actually concerned about the future of Costa Mesa home values wouldn’t have been enlightened, since more convincing points had already been made by real financial analysts. Several of their more persuasive arguments weren’t noted in the AI essay. Here are a few:

  • The rapid rise in untapped home equity over the past couple of years means that even if Costa Mesa home values declined more sharply than expected, very few mortgage holders would be underwater.
  • More than 90% of current mortgages carry fixed rates, so interest rate hikes don’t affect them. It’s an altogether different environment than that which led to the last meltdown.
  • Because of the value homeowners place on their existing mortgage rates, fewer than usual will be tempted to move—they’re simply opting to stay put. The resulting tight inventories are another reason why Costa Mesa home values are less apt to drop off significantly.

Those aren’t the only points the AI robo-writer neglected to highlight, but they are the ones that effectively undermine the pessimistic arguments that might otherwise shake human nerves. They could be why even alarming news (like the threat of a recession or another Fed Funds rate hike) doesn’t seem to be having much effect. There are opportunities to be had for both buyers and sellers as we approach the traditionally active spring busy season for Costa Mesa real estate. Call us to discuss what’s out there now!

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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