If you’ve been checking into the Costa Mesa listings from time to time, you might be puzzled by the number of experts who refer to a ‘housing market downturn’ or ‘real estate recession.’ The Costa Mesa listings regularly show new properties coming onto the market—just as they record those that go under contract and, later, join the ‘SOLD’ group. With asking prices that aren’t exactly in buyers’ market territory, the ‘downturn’ characterization could be confusing.

Last Thursday, when Realtor.com’s chief economist Danielle Hale appeared on CNBC’s Squawk Box program to discuss the latest housing market news, the discussion provided some clarity on what today’s ‘downturn’ means for homeowners and prospective buyers. A large part of the ambiguity stems from how the term ‘housing market’ is understood.

Here are bullet points from that interview:

  • Sales continue to lag in the existing home market—yet the prices being paid for those that sell are mostly rising or holding firm. The short sales volume is largely due to the widespread phenomenon of existing mortgages with low interest rates which homeowners are extremely reluctant to abandon.
  • Sales of new homes, on the other hand, reflect “a surge in demand.” That should come as no surprise since the existing home market is so starved for inventory.
  • Taken together, the housing market is estimated to be underbuilt “by two to six million homes”—meaning home builders “have a lot of opportunity.”
  • Today’s mortgage interest rates may undermine the financial ability of middle-income Americans to buy, but Hale projects that “once we move into the second half of 2023 and into 2024, I think things are going to look better.”
  • In March, the average home price for all housing in the U.S. (existing homes new and old—condos and townhouses included) was a healthy $761,540.

The downturn and recession characterizations may persist for a while, but perhaps a more apt summary could be found on ever-practical ramseysolutions.com, which recently advised:

Now, if you’re thinking of selling, don’t stress. The average house price in 2023 is still higher than in past years, so odds are you’ll still make a pretty penny.”

If you’ve been tracking the Costa Mesa listings for a while, you’re apt to agree…and if it prompts you to investigate how properties similar to your own have fared recently, just give us a call!

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



Posted by Matt Kanoudi on
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