Costa Mesa Real Estate Performance vs. U.S. Reports
Getting a bead on how this spring’s housing market is faring can be less than reliable if the conclusion is based on national summaries. Last week offered a good example.
Take USA Today’s Friday report, which included a section promising “What is happening with home sales?” It seemed to merit one of those frowny-faced emojis since it highlighted the Pending Home Sales Index, a forward-looking indicator. The PHS showed pending transactions were “down by 23%” from last year’s total. The explanation from NAR® Chief Economist Yun cited the stubborn persistence of an inventory shortfall. “The lack of housing inventory is a major constraint to rising sales,” said the economist.
But the following discussion included this fact: the national unsold inventory currently holds a 2.6-month supply—which is significantly greater than the 2.0-month supply registered a year earlier. Why an increase in the supply of homes being offered could result in a pending transaction drop of 24% would have to leave careful readers wondering how to explain the contradiction…
In fact, the explanation for the national (not necessarily Costa Mesa real estate) market’s performance would have to be ascribed to other factors. And in fact, the same report cited rising home prices and elevated mortgage rates (6.5%, nationally) as why “Spring has not yet sprung” in the national market. The obvious impact on affordability would certainly dampen the pace of mortgage-aided sales, causing home loan applications to fall and increasing the market share of all-cash transactions. Another impact of higher prices would leave current home sellers better able to afford their next home purchases. That’s exactly what the NAR reported: nearly 27% of the recent buyers made all-cash purchases.
But the future may be looking at least a little bit brighter than the unsprung spring headlined on Friday. “MBA expects mortgage rates to decline slowly as the year progresses…and may spur sales activity” was among later conclusions. For local buyers and sellers, though, it’s wiser to contact us for a precise read on this spring’s Costa Mesa real estate market. It can be less ambiguous than reports on national results—and much more relevant!
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
