Was Last Week’s Real Estate Story Really “Stunning”?
Costa Mesa real estate activity may not necessarily reflect national trends, but anytime U.S. news media pick up on an interesting storyline that includes the phrase “home sales” (either “existing” or “new”), that can have an effect on how future Costa Mesa buyers and sellers approach their own plans. Last week there was one of those stories.
It followed the release of December’s home sales numbers, which declined by 6.4%. This was truly an unusually large decline—though hardly the “plunge” that “Stuns Real Estate Agents” (the Newsmax headline).
CNBC, which usually offers a more steady-as-she-goes viewpoint in its Realty Check column, also reported that the drop in home sales “has real estate agents baffled.” They thought the agents’ bafflement was largely due to the fact that the month hadn’t produced “some sort of change in government policy” such as a tax change. Sizeable sales volume moves can usually be tied to such gyrations. Apparently, CNBC discounted the unnerving effect that the jittery stock market had inflicted on many people’s nerves in December. The Dow’s record-setting dive mid-month should have been hard to discount entirely; but at any rate, that kind of performance had mercifully vanished with the new year.
The National Association of Realtors®’ chief economist, Lawrence Yun, wasn’t stunned. He expected that a decline in consumer confidence had a lot to do with the drop. But he was somewhat puzzled that sales volume numbers “do not reflect the lower current mortgage rates.”
By week’s end, those rates remained at a three-month low, averaging 4.45% for the week according to Freddie Mac. With the announcement that the partial government shutdown is over (at least for the moment), Costa Mesa home buyers and sellers might see their own confidence newly restored—at least enough to see if they might take advantage of the real estate value embodied in those low home loan interest rates. If that’s your own inclination, we hope you’ll give us a call!
We are built on a philosophy of Heritage & Hustle 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 to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. 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, L3 has grown to a full staff of 20 serving over 300 clients a year. L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has 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 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 L3 today at 714-444-4663 or email us at info@thel3.com
