Costa Mesa Real Estate Blog

Waiting is not the cure...I often point out to my clients that now is a better time to buy real estate in Costa Mesa because the interest rates have been at such a reasonable level. Today, interest rates for Costa Mesa Homes are at approximately 6 1/8 with no points.  Inflation in the economy creates more problems than a buyer can see at the surface.

Of course, inflation is particularly bad from a buyer's point of view, because the Federal Reserve's main weapon against inflation is higher interest rates. Anybody remember buying a home in the 70's and 80's at double digit rates?

Well, guess what? The way the economy is going, the Fed will undoubtedly be forced to raise short term interest rates. Now, think about the other side of the buyers/sellers fence.

Inflation is not entirely bad from a home owner's perspective- it would help stop the drop in home values for one thing, at least on a nominal level- on the whole, inflation is a specter we want to avoide. It erodes confidence and prooductivity in the economy and distorts the allocation of capital.

However, with oil prices continuing to rise, the Fed will have little alternative but to tighten its monetary policy, raising its target interest rate before the year's end.

Do the math- a quick calculation at today's rate (6.25%) on a 30 Yr. fixed mortgage on a $400,000 loan amount is $2462 and change.....Were the interest rate to rise in the same scenario to 7.25 %the same paymnet would be$2728, nearly $275 higher.

With a near bottom on real estate prices, you are better off buying today and going for the lower interest rate. Call or e-mail me (714-743-9882 or Colin@VerandaHomes.com) to ask for even better ways to lower your rate below  todays current 6.1875%.  I just found a home for a buyer and obtained a 5.375 interest rate with a little know buyer's tactic I often use.

Happy house hunting!!

New Costa Mesa Obnoxious Dog Law

The Costa Mesa City Council passed a law last week that will administer fines on owners of Costa Mesa Real Estate's dogs who make excessive noise.

Under the law, a dog disturbance is defined as barking, banging, howling or crying that lasts for 30 minutes continuously or for 60 minutes over a 24 hour period. The fines on the dog owners are on an escalating basis by offense, starting at $200 and increase upwards of $403.

Scary, huh??? Obviously those dog owners will have to keep an eye (and an ear) on their favorite canines. This is a welcomed development to many Costa Mesans, there are lots of offending dogs out there, to be sure…..hopefully residents will take a kind approach to their neighbors with dogs before they bark at the city........now if we could only do something with those pesky possums and Racoons.....

For more details, read about the law at the Daily Pilot article.

Costa Mesa Real Estate Selling Quicker

You might have seen recent government reports touting that pending real estate activity and homes for sale finally picked up in April, and it is a common thread currently in Costa Mesa.  Homes are selling and taking less time to sell now.  What has helped the market recently is that not as much new inventory has come on to compete with what had already been out there previously, and prices for existing inventory have come down as well.

Entry level for single family homes is around $500,000, although many bank owned homes have become available in the $425,000 - $475,000 range and are selling tremendously quickly, with multiple offers.

Nice homes with upgrades, great locations, and desireable neighborhoods are still selling very quickly (30-60 days).

Condos have been selling more quickly lately as well, which is an area that has been sorely missing from the Costa Mesa real estate market.

For information on the best homes and best deals in Costa Mesa, e-mail me or call Colin at 714-743-9882!!

Costa Mesa boasts some of the world's finest restaurants, and today's is a hidden gem!

The Old Vine Cafe, located in The Camp off of Bristol and Baker, is fabulous!! It's known for it's fabulous selection of wines, but personally, the food is simply outstanding. Breakfast, lunch, dinner, it's a can't miss across a wide palate!!!

Check it out- you'll be glad you did.

Old Vine Cafe, Wine & Specialty Foods is a full service breakfast/lunch/dinner cafe, as well as a wine & Cheese shop, located in The Camp (2937 Bristol St. Suite A-102 Costa Mesa, CA 92626). The cafe gets its name from the ancient vines of the old world wines of western Europe. "Old vines" are synonymous with wines of a unique quality, expressing the earth in which they are grown through the flavor of the grapes. The experience that O.V.C. provides for guests is not unlike the grapes that grow on old vines. Chef Mark McDonald’s menu is influenced by international culinary traditions and the implementation of seasonal ingredients. Old Vine Cafe LLC is owned and managed by brothers Mark and Brandon McDonald.

Market Bottom? Always tough to say, where's my crystal ball, eh?

I'll tell you what I do know- there is an unbelievable appetite for single family homes in the lower $400,000s of the Costa Mesa homes for sale.  It is really remarkable- I just represented a buyer who was interested in purchasing a bank owned home in Costa Mesa, and the home came on the market in the South Coast metro area for $487,000, far below what the neighborhood is and should still sell for today. What happened with that house? After two days on the market, it had 29 offers. Yes, you read right. 29 Offers. Bidding started over at $566,000 after the dust settled and that home will probably sell a full $100,000 over it's initial offer point.

What I do know is that Real Trends, who follow the market closely for Southern California and especially Costa Mesa Real Estate, showed data that April was a positive selling month for the first month in a long, long time, fueled mostly by homes in the lower $400-$600,000s. However, homes are moving much, much quicker than they have in the past year.  Inventory has been greatly reduced, and inventory is pretty thin compared to the last two years.

My advice to those that have been waiting? At least get off of the fence and start looking. You would be surprised what lower mortgage rates (sub 6%) and current homes look like.

It ain't getting better tahn this any time soon.....

Finally a little relief to our market- Jumbo Rates, rates for loans in our local Orange County market up to $729,750, have come down to earth!

Rates as of this writing (5/9/08) are currently offered at 5.75% with no points.

That is down nearly a full point from a month ago!!

The market locally in Costa Mesa has already started moving swiftly with sales at a brisk pace for homes under $500,000 and moving moderately well for homes in the 600k-700k range.