Real Estate Market Updates

Shrinking Palm Springs Real Estate Inventory

As summer morphs into fall we can assuredly report that there has not been a slowdown of buyers or sales in the Palm Springs real estate market. The latest numbers show less than six months of residential real estate inventory in the valley - the fourth consecutive month of inventory declines as year over year sales remain brisk. We are continuing to see signs of price stabilization and even small upward ticks as the inventory of properties continues to trend downward.

Competition for bank owned and short sale properties continues to be brisk with multiple offers in most cases. Our experience in negotiating successful transactions for our buyer clients has proven invaluable in helping them acquire REO and short sale properties at very attractive prices.

Since January of '08 there has been a fairly steady decline in the number of new listings for sale coming on the market each month. New monthly listings peaked at 2,247 in January '08 and have since continued to decline to just 893 during June '09. Sales have increased more that 100% since January '08. The uptake in traffic and sales continues to be driven by bargain prices. In many price segments we are seeing prices not realized since 2002!

Palm Springs Real Estate: Area Sales Last 12 Months

During the past 12 months over $2.5 billion in sales were recorded in the Valley. Below is a summary of these sales by the average price per city and units sold per city:

Average Real Estate Sales Prices By City

• Indian Wells: $796,262
• Rancho Mirage: $593,499
• La Quinta: $505,079
• Palm Desert: $401,259
• Palm Springs: $328,255
• Indio: $208,276
• Cathedral City: $193,725

Number of Properties Sold by City Last 12 Months

• Indio: 1,555
• La Quinta: 1,014
• Cathedral City: 886
• Palm Springs: 698
• Palm Desert: 575

La Quinta continues to lead all valley cites in the following categories for the past 12 months:

• Over $1 million - 95 sales
• $749,999 to $999,999 - 89 sales
• $500,000 to $749,999 - 144 sales

The ‘Move Up’ Market Segment

Another sign of an improving market we've noticed is that prices seem to be stabilizing for homes and luxury condos priced from $500,000 to $999,999. In our breakdown by city below, note that three out of four of these desert cities showed a price decline of only 0.5% to 1% over the same period of '08. That said, it is still a buyers market although inventory is starting to tighten up in many communities.

1/1/09 to 8/3/09 Sales by City from $500,000 to $999,999

#1) La Quinta

• '09 Y-T-D: 149 sales / $697,469 average sale (-1%)
• Same period of '08: 195 sales / $704,228 average sale

#2) Rancho Mirage

• '09 Y-T-D: 74 sales / $681,026 average (-0.5%)
• Same period of '08: 152 sales / $685,067 average sale

#3) Palm Desert

• '09 Y-T-D: 59 sales / $651,497 average (-0.5%)
• Same period of '08: 137 sales ($653,128 average)

#4) Indian Wells

• '09 Y-T-D: 38 sales / $664,471 average (-5%)
• Same period in '08 - 45 sales ($699,233 average)

Foreign Sales Of Palm Springs Real Estate Surges

Buyers from outside the U.S. accounted for a growing percentage of Palm Springs area sales as these buyers took advantage of the combination of lower prices and the low U.S. dollar. Canadian buyers became the most frequent non-U.S. buyer of U.S. properties as the Canadian Dollar moved up to par with the U.S. Dollar. The combination of lower sales prices and the higher Canadian loonie has resulted in a huge increase in Canadian buyer power here in the desert.

Warm May Weather & Hot Sales

May turned out to be the warmest May in La Quinta about ten years as the thermometer hit triple digits much of the month. Thus far, June has been a wonderful change with temperatures only in the mid to high 80's and low 90's.

Heating up even more (please forgive the pun!) is our Palm Springs area real estate market. We continue to see a higher number of sales and pending sales over the last few weeks as buyers continue to grab some exceptional values. So, come on down! The weather is great and so are the values!

Palm Springs Real Estate Market Update

Buyer traffic and property sales both continue to heat up. Pending sales have been steadily increasing with 62 homes entering escrow in just the last 24-hours, with prices ranging up to $2.4 million. The downside is we are starting to see a gradual reduction in the supply of bank owned homes and properties that are priced to compete with bank owned homes.

Taking Advantage of Today's Buyers Market

Please consider the following points. You'll then be prepared to act quickly when we spot a great value:

• Today's best values are selling quickly - some properties in hours, many just in days. If fact inventory is now declining.
• Contact me so that I can you register you for my property email notification program right away. When a property that fits your parameters becomes available, you'll be notified automatically via email saving time and preventing missed opportunities.
• When you see a property you like, simply call or email ASAP and I'll be happy to research the opportunity further.
• Today's best values are usually priced very aggressively and many are selling at or close to the asking prices.
• Don't expect to succeed with a low-ball offer on bank-owned properties or properties that compete price wise with bank owned properties. We compile a wide array of extensive data that will clearly indicate if a property has been priced correctly.
• Before any offer is submitted, be aware that cash buyers will need proof of funds such as a bank statement and finance buyers will need proof of loan approval (not pre-qualification).
• Finally, don't be overwhelmed by so many choices. It's my pleasure to assist you in sifting through desert communities and inventory in finding properties that best suit your needs.

Sheri’s Short List of Great Palm Springs Area Home Values

Luxury Condo / Town Home Community: Legacy Villas, La Quinta - Current listing prices are reduced up to 60% from previous highs of over $900,000. Current prices range from $199,000 to $715,000. An amazing 27 properties are in escrow and 15 units have sold during the last six months. Properties that are priced right seem to be going in just a few days - many with multiple offers.

Affordable Golf Community w/Low HOA's: Trilogy, La Quinta - is a newer, active-adult community in south La Quinta that offers residents a wide variety of amenities with low HOA's. I've helped numerous buyers take advantage of some highly discounted properties at Trilogy. Trilogy is likely the only newer golf community in the area offering a number of resale homes from the $200's to $500's.

Luxury Golf Community: Mountain View Country Club offers a scenic La Quinta location and a whole menu of enjoyable amenities. If you're looking for an active social, fitness, tennis and/or golf membership, newer homes and luxury condos, then you'll definitely want to take a look at Mountain View. A few recent properties sold for discounts over 55% from the previous selling prices.

5-Star Golf Community: At Hideaway in La Quinta, a number of custom builders and speculators built luxury custom homes in this top-rated country club community. Significant price reductions offer buyers unprecedented opportunities on some fabulous custom homes. In fact a recent client took advantage of a 42% discount from the offering price on their new custom golf home at Hideaway. Also consider Tradition Golf Club in La Quinta that has some great opportunties.

Luxury Non-Golf Course Community: The gated community of Palmilla in La Quinta if you're looking for luxury, views and contemporary style, the private community of Palmilla should be at the top of your list. This water-themed community has a number of spectacular homes both on and off the water. While Palmilla's homes previously sold for upwards of $1.9 million, today's opportunities are priced from the $630,000 to $1.4 million.

Please don't hesitate to contact me for further information, or to receive email property updates for these and any of our fabulous desert lifestyle communities. I'm also happy to arrange private tours.

Palm Springs Real Estate Sales Up 71.6%

In the Palm Springs/Lower Desert area, home sales increased 71.6% in March. Overall California home sales increased 63.8% percent in March compared with the same period a year ago as buyers continue to take advantage of highly discounted prices.

“The March sales figure of 522,980 homes indicates that the market continues to be very active,” said California Association of Realtors® President James Liptak. "All of the regions in the state experienced increases in month-to-month sales, with the smallest gain in the Sacramento region at 9.7% and the largest gain in the Riverside/San Bernardino county region at 32.2%."

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In Real Estate Market Updates