Rosy Home Equity Update Gets Perspective Overhaul

Last Thursday was the regular release date for ATTOM Data Solution’s quarterly Home Equity report. This year, ongoing events created the need for some additional commentary.

As the “curator of the nation’s premier property database,” ATTOM’s figures can be relied upon to gauge the nation’s residential real estate equity levels—Costa Mesa homes included. This latest report covered 2020’s first quarter. It takes a while to collect and verify all the data—but last week, for optimists, the wait was worthwhile: the report card was a “rosy” one.

But, needless to say, a lot has changed since the end of March—hence the additional commentary.

The report showed that about one in four homes in the U.S. qualified as “equity rich,” defined as a property with outstanding home loans totaling less than half of their estimated market value. When compared with the meager 6.6% of homes considered “seriously underwater” (those with loans totaling at least 25% more than their market value), the overall health of homeowners’ balance sheets looked strong.

But spokesman Todd Teta had to admit the obvious: this “rosy” first-quarter report needed “to be taken in the context of the impact of the Coronavirus pandemic.” In other words, at least in the immediate near term, the share of equity-rich homes could be expected to suffer—at least until business activity (and paychecks) return to more normal levels. That’s something not expected to happen until at least the end of the third quarter.

All in all, looking for precise guidance on future conditions is even less fruitful than usual. As Norada commentator Marco Santarelli put it, “housing market predictions run the gamut from optimistic to pessimistic.” Costa Mesa home sellers may continue to gain leverage due to low mortgage rates and tight inventories (both are expected to continue)—but with national economic factors in flux, housing market predictions are necessarily unreliable. For a concrete reading on the latest local Costa Mesa real estate activity, call us!

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

Last Week’s Events Affecting Costa Mesa Home Sellers

In addition to last week’s earthshaking mortgage interest rate developments, a batch of other events that also could affect Costa Mesa home sellers made news:

• Costa Mesa home sellers who’ve been hearing that millennials constitute the next wave of prospective buyers might have been momentarily discouraged by CoreLogic’s new report, which included the dire-sounding, “only 40% of millennials feel financially confident enough to purchase a home.” (Those who know that there are 71,000,000 millennials would have fretted less).
• On the other hand, CoreLogic also informed Costa Mesa home sellers of their projection that the U.S. residential price index will rise 5.4% by January 2021. This January marked the 8th consecutive year that prices rose in the U.S.
• Last Friday, Freddie Mac’s chief economist put a number to the undersupply of American housing: 3,300,000 units. The reason continues to be outfall from the housing crash of a decade ago, which wiped out many homebuilding companies. For Costa Mesa home sellers, it’s part of why the prices for their properties are expected to continue to rise.
• An email ad for a security software company cited the FBI finding that the “average loss from a home break-in is $2,316.” Homeowners who have experienced a break-in know that the emotional toll can amplify the cost. That’s why Costa Mesa home sellers who have installed modern security systems are well served by being able to promote that feature prominently.

If you are thinking that this spring is shaping up as a prime season to list your own Costa Mesa home, you aren’t alone. Call Us!

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

Costa Mesa Real Estate Watchers Buoyed by Market Report!

Happy Tuesday! Today, Weichman Realtors wanted to share this new information with all our friends and real estate family!

When it comes to Costa Mesa’s residential real estate outlook, some truisms say it all: “Strike while the iron is hot!” “The early bird gets the worm!” “Time and tide waits for no man…” Sometimes those hoary old clichés have survived because their wisdom doesn’t ever change — and right now, some hard facts and figures may make these more relevant than usual.

Local real estate watchers, buoyed by last Tuesday’s stock market jump (a reaction to the bullish real estate statistics), were also digesting The National Association of Realtors®’ latest report: it carried more cheerful news about the expanding market for existing-home sales.

Final numbers for April showed sales moving at the highest pace since November of 2009, which was a single month that spiked due to the homebuyer tax credit. It also marked the 22nd consecutive month of year-over-year monthly price rises.

What is the “even better” news for potential Costa Mesa real estate sellers? It’s about the relationship between available inventory and the pace of sales. The listed inventory across the nation is actually 13% lower than a year ago — which translates into a median time on market of just 46 days. A year ago, that figure was 62 days. In other words, across the nation, sales of existing homes are moving a full 45% faster!

NAR President Gary Thomas had some words for real estate buyers that potential sellers will be pleased to hear. “With homes selling in half the time it took to sell a year ago, buyers must be both decisive and prudent.”

Costa Mesa home sellers should love that word ‘decisive.’ It hints at the underlying condition of a market that’s becoming more competitive for buyers — buyers additionally empowered by April’s fall in conventional mortgage rates. For both Costa Mesa real estate buyers and sellers, now looks like time to “strike while the [market]’s hot”!

In case you have been one of those trend watcher, Weichman Realtors is standing by. Why not give us a call at 714-444-4663 to discuss how you can take advantage of today’s outlook?