December marks the start of the real estate prediction season—and last week, Forbes published an early entry. Forbes is the century-old business magazine that tracks investment and financial markets—often bringing heightened scrutiny to the housing industry since housing is a tail often said to wag the dog (the canine is the rest of the U.S. economy). For anyone who doubts the validity of that metaphor, here’s how the NAR® maps the economic impact every single home sale makes, state by state.

For those with an eye on the direction of the national and Costa Mesa housing markets, the Forbes outlook was interesting. It was mildly out of step with the grim-faced recession commentaries being offered by most of the talking heads on TV. Residential real estate mayhem is not in the cards for 2023, according to Forbes’ reasoning:

  • Early December’s 30-year mortgage rate may be high—averaging around 6.5%—but is far below the 18% rates of the 1980s.
  • Admittedly, since rates are more than double January 2021’s rate—there’s bound to be a volume effect on housing market totals (including Costa Mesa’s).
  • When interest rates climb, home prices usually fall to compensate—yet that has not been the case in 2022.
  • The reason: supply has not kept pace with demand which refuses to vaporize.

Those factors lead Forbes to make some predictions that are less pessimistic than would otherwise be expected. Except for multi-family units, new home construction is on the decline— continuing to exert upward price pressure. The result may be a plunge in the number of single-family home sales but much less of a decline in prices than many expect. High property equities “and a resilient job market” should prevent panic-inducing foreclosure rates, making an all-out stampede from housing unlikely. Redfin expects the total decline in home sales prices to amount to no more than 4% over the coming year— not even a whisper of a reversal of the 40% U.S. price rises since early 2020.

Costa Mesa’s housing market may be affected by national trends but seldom matches them precisely. For a more focused look at current local activity, there’s no substitute for the well-researched report we’d be happy to put together for you—with never an obligation, of course!

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



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