Housing Affordability Looks to be Less of a Hurdle
There are many ways to look at housing affordability in Costa Mesa—but if you’re a typical prospective homebuyer, the one that makes a real difference isn’t found in the real estate statistics. The truly decisive “affordability” factor is the dollar amount of the mortgage payment that goes with the price of the home. It’s either affordable or it isn’t.
It's a well-publicized fact that U.S. home prices have risen dramatically since the end of the Great Recession. That would seem to mean that average housing affordability over that period has been in decline—especially early in the recovery when incomes were rising slowly (if at all). Since then, many commentaries have pointed out a “housing affordability gap” that (along with a shortage of homes for sale) has been used to explain lackluster market activity.
For most of Costa Mesa’s prospective homebuyers, all that is background noise. It might keep some from even starting to look for a new house, but when circumstances dictate that it’s time to find a new home, true “housing affordability” comes down to those monthly cost figures. And the actual numbers are headed in the right direction.
The final 2019 statistics won’t be in until long after the Waterford crystal ball has dropped in Times Square, but as of this summer, the “typical mortgage payment” has actually shrunk year over year. That was Corelogic’s finding, published this summer. By September, TheMortgageReports contributor Aly Yale could write, “home prices might be up, but American mortgage payments are actually falling.” She found that the average monthly payment had dipped a full 6% from a year earlier. In fact, compared with the all-time high reached in June 2016, she calculates that “current typical payments” have plummeted by 32%!
Actual Costa Mesa housing affordability is a family-by-family budget calculation. Still, given the analysts’ findings, those who have been discouraged by talk of a housing affordability gap might want to pull out a calculator to see what today’s market offers. I’ll be waiting by the phone with more information if the numbers look good!
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
