The Costa Mesa real estate market, found in Orange County in Southern California, saw signs of distress both in terms of residential home sales and some types of business real estate. A July 16, 2010 report from the Los Angeles Times indicated that not just Costa Mesa is facing these difficulties. The entirety of the Golden State saw a decline in median price as the federal housing tax credit expired. According to the article by Alejandro Lazo, “California's median home sale price fell 2.9% in June compared with May even as sales picked up with buyers closing on purchases made during a spring season fueled by state and federal tax credits. The median sale price in the Golden State was $270,000 last month for all new and resale houses, town homes and condominiums, according to San Diego real estate research firm MDA DataQuick. While that was lower than in May, the median was up 9.8% from June 2009, marking eight consecutive year-over-year increases. A total of 43,964 homes were sold statewide last month, a 7.3% jump from May but a 0.5% decline from June 2009. A bright spot: Foreclosures as a percentage of the resale market were down considerably from the depths of the economic downturn, comprising 34.7% of the market in June. Foreclosure sales peaked at 58.5% of the market in February 2009. Economists believe the effects of federal and state tax credits are beginning to wane.”

Costa Mesa homes for sale may also be adversely affected as the commercial real estate market continues to face financial distress. According to a July 15, 2010 article from the Orange County Register, “Despite hints that hotels room rates are firming — and some of those rooms are filling up — a new report states that a growing number of hotel owners in Orange County and across the state are having trouble meeting their mortgage payments. Atlas Hospitality Group reports 73 more California hotels were in high financial distress — in default on their mortgage or foreclosed upon — in the second quarter vs. a year ago. This 478 second-quarter total is an 18% increase from the first quarter 2010 and up 132% vs. a year ago. In Orange County, four hotels were now owned by banks in the second quarter vs. two foreclosures in the previous quarter and one a year ago. (By the way, Riverside County led the state in number of foreclosed hotels with 11.)”