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As I have noted before, it appears prices have really leveled out.

Here's some recent data that suggests buyers aren't receiveing as big a discount as they had in the early part of 2009:

List/sale price gap diminishes
Home buyers still are paying less than a home's asking price, but had slightly less negotiating power in August than they did in July, according to the August Zillow Real Estate Market Reports. Buyers paid a median $6,525, or 3 percent, less than the last listing price on homes bought in August, down from $7,018, or 3.3 percent, less for homes bought in July, according to the report. Negotiating power peaked in January 2009, when buyers were paying 4.5 percent less than last listing price, a median of $10,096.

Costa Mesa homes for sale should continue their upswing in value next year, according to California Association of Realtors data: 

LOS ANGELES (Oct. 7) –“California’s housing market continued its strong sales rebound this year, resulting from the continued pace of distressed properties coming to market,” said C.A.R. President James Liptak. “This follows two years of double-digit sales declines in 2006 and 2007. Looking ahead, we expect sales to moderate to a more sustainable pace.”

The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) "2010 California Housing Market Forecast" will be presented this afternoon during CALIFORNIA REALTOR® EXPO 2009 (www.realtorexpo.org), running from Oct. 6-8 at the San Jose Convention Center in San Jose, Calif. The trade show is expected to attract more than 7,000 attendees and is the largest state real estate trade show in the nation.

“After experiencing its sharpest decline in history, we expect the median price to rise modestly next year,” Liptak added. “2010 will mark the beginning of the ‘new normal’ for California’s housing market. This ‘new normal’ likely will feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation.”

The median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 this year, according to the forecast. Sales for 2010 are projected to decrease 2.3 percent to 527,500 units, compared with 540,000 units (projected) in 2009.

“Housing in California has become a tale of two markets,” Liptak said. “The low end continues to attract first-time buyers and investors, with a resulting shortage in the number of homes for sale. Sellers at the high end, however, continue to be challenged by the ability of home buyers to secure financing as well as their concerns about where prices are headed. While demand from first-time buyers for low-end properties will continue throughout next year, sales could be impacted if discretionary sellers do not return to the market by the second half of 2010.

The hottest section of the current real estate has been the bank owned sales (and short sales), and currently that active inventory, including both foreclosures and short sales, has dropped by 56% since reaching its peak last summer.

Most experts (including this Costa Mesa Realtor) have been expecting the distressed inventory to increase for the past couple of months. But, that has simply has not materialized yet. The distressed inventory (short sales and bank owned homes) dropped again in the past two weeks, bringing the total to 2,616 active in the Orange County market today. That figure now represents 29% of the overall active inventory versus 40% one year ago. It is 3,334 less than the peak of 5,950 on August 7, 2008.

So we have seen a big drop, and that is consistent in the Costa Mesa homes and Costa Mesa real estate market.

The problem right now is that there is tremendous demand for foreclosures, but simply not enough new foreclosures hitting the market. The expected market time currently is .54 months, about two weeks, compared to 1.42 months last year. T

The rumor mill has been giving us reasons for the shortage of foreclosures:

1. Lenders holding back inventory

2. Foreclosure laws changing

3. Many successful short sales prior to foreclosure (lenders more willing to sell than last year)

4. Demand for short sales is now more than twice what it was last year for short sales.  

Clearly the market has changed considerably over the past year for both foreclosures and short sales.

How do the rest of the numbers look? check out my previous posts for Costa Mesa Inventory, it has a great deal to do with what is causing the quick sales in the lower tier of the Costa Mesa real estate andhousing market.

Costa Mesa's inventory has been really challenged this year, and while that might be a surprise to some locals, if you are considering selling, the market is extremely strong for sellers.

The media reports are often skewed towards national inventories, prices, and trends, but Costa Mesa has been very active this year with especially low inventories. Prices are holding - granted you have to price according to what the market will bear- but many homes are seeing all cash offers or multiple offers with highly qualified candidates with good money and credit scores.

I just sold a home at 3248 Idaho Lane in Costa Mesa that received 7 offers over the course of 8 days!! My sellers picked terms that worked for them, and we closed escrow 35 days later!!
Call me at 714-743-9882 if you are curious or would like to talk about the market further.

Cheers!
Colin

Colin@VerandaHomes.com    

Well, I thought I was doing good when we recently had 7 offers on one of my listings. An REO in the Halecrest neighborhood just recently had a total of 68 offers!! It was listed just under $400,000 and probably sold for well above $450,000.

It goes to show you that the Costa Mesa real estate and costa mesa homes for sale inventory is slight; too slight in fact and it is producing this kind of problem. Perhaps this home was listed too low, but it also goes to show you how many people are following the REO and lender-owned housing market right now.

Costa Mesa is a desireable housing market right now, and with low interest rates, it is really starting to become a seller's market again.

If you are looking at Costa Mesa homes for sale, or need help navigating between the various neighborhoods, give me a call at 714-743-9882.

Colin@VerandaHomes.com

Don't get me wrong, they aren't all selling overnight, but homes in Costa Mesa priced under $700k are generally selling very quickly, usually in about 30 days or less.

Why? Inventory. Inventory. Inventory. There is not enough for sale; home prices are down, so they are more affordable; and interest rates are still in the lower 5% range.

If you are thinking of selling, call me to discuss the market and how to best maximize your potential sale with my unique home preparation methods to squeeze the most $$$ out of your home!!

Colin Delaney

714-743-9882

Colin@verandahomes.com

Costa Mesa's inventory has been really challenged this year, and while that might be a surprise to some locals, if you are considering selling, the market is extremely strong for sellers.

Consider this chart of July inventory in Costa Mesa as compared to the past year:

The media reports are often skewed towards national inventories, prices, and trends, but Costa Mesa has been very active this year with especially low inventories. Prices are holding - granted you have to price according to what the market will bear- but many homes are seeing all cash offers or multiple offers with highly qualified candidates with good money and credit scores.

I just sold a home at 3248 Idaho Lane in Costa Mesa that received 7 offers over the course of 8 days!! My sellers picked terms that worked for them, and we closed escrow 35 days later!!
Call me at 714-743-9882 if you are curious or would like to talk about the market further.

Cheers!
Colin

colin@verandahomes.com    

Well, this is a story that goes to show you that you might not really know your neighbors as well as you think you do.

I joke that someone has finally found the elusive "money tree" and low and behold, it's right here in the Mesa Verde neighborhood of Costa Mesa!!

The way the economy has been, it's not surprising, but two alledged perpretrators were arrested this week for forging $50 and $100 bills and passing them off to retailers. The Secret Service was involved in helping catch the crooks, and they mentioned that the forgers actually did one of the best jobs that they had seen recently.

Too bad they couldn't do it legally, ala President Bush and the government's $700 Billion Money Tree!!

P.S. let me know if you want to buy the home with the money tree in Mesa Verde, I know where it is and they are open to offers :)

©Colin Delaney 2008

Costa Mesa's residential resale stats are in for August, and they are slightly contrary to the western states trend of a decrease of 17.7%.

Buyer's took advantage of interest rates that crept well below 6% for 30 year fixed mortgages.

CMAug.pdf will show you there were 67 homes and condos that sold overall in August, certainly a better number than the year previous. September will show an improvement over last year's period when only 39 homes sold; currently, through Sept. 23rd there have been 40 homes and condos sold in Costa Mesa.

Looking for information about the local Costa Mesa market? Call Colin Delaney at 714-743-9882 or colin@verandahomes.com.

©Colin Delaney 2008