About the last thing area homeowners need now is to spend time worrying about the effect the pandemic will have on their Costa Mesa home values. Given that memories of the Great Recession have yet to fade, a replay of that decline in home values might seem logical.
So, it was reassuring to read Claire Trapasso’s calming analysis pointing out the multiple reasons why a housing crash is viewed as highly unlikely in today’s circumstances. Professor Trapasso’s analysis highlighted a number of points, including these five:
- Mortgage Stability. Housing market fundamentals “couldn’t be more different” than those that prevailed in the 2007-2009 meltdown when “just about anyone could get a mortgage.” Today, stricter borrower qualification requirements have measurably lowered risk levels —so massive numbers of bad loans are highly unlikely.
- Tame ‘Flipping.’ The rampant home flipping and widespread speculation that fed the 2007 meltdown is simply not a factor threatening Costa Mesa home values.
- No Overbuilding. Today’s U.S. housing market is characterized by a widespread shortage of inventory—the exact opposite of previous overbuilding, which previously exerted downward pressure on home values.
- Interest Rates. Home loan interest rates at historic lows continue to create affordable monthly payments that support higher price levels.
- Demographics. Even now, demand for new homes “hasn’t evaporated” because there are simply too many would-be buyers out there: “millennials eager to put down roots and start families…”
Predicting the future is, as always, more art than science—and in today’s unprecedented situation, that’s still true. A slowdown in price hikes may be likely (that’s what realtor.com’s chief economist says)—but a host of housing fundamentals make another wholesale meltdown unlikely. Call us to discuss the latest results—and opportunities—out there in today’s Costa Mesa market!
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