Real Estate Market Updates

On The Other Side Of The Fiscal Cliff

Palm Springs Area Buyers Coming Forward In Increasing Numbers

A number of recent buyers shared with me last month that they were in stand-by mode until our fiscal cliff and tax situations were somewhat resolved here in the U.S.. Now these buyers are coming forward in increasing numbers and in all price segments.

Sales activity for both new and resale homes, luxury condos and custom lots are all on the upswing and yes, prices are continuing to rebound as our Palm Springs area inventory remains below normal. January was off the charts busy as buyers continued to take advantage of some great real estate opportunities. February also appears to be very strong.

Property Owners Seeing Increased Values

Desert property owners wishing to sell are now realizing that their property values have increased nicely in the past year in many communities, especially in the mid to upper price ranges.

Long story short, yes last year's prices are long gone but there are still some very good opportunities in both golf and country club and non-golf communities. While nothing is guaranteed, I see a continuation of the improving market here in the desert for the foreseeable future. After all, a growing number of people from the U.S., Canada and internationally do want to find their home in the desert sun.

Palm Springs Area Heading Towards A Sellers Market?

Forbes Magazine reports that a sellers market is developing as housing inventory hits a 13-Year low. Here in the desert that's already happened in several price segments as the market continues to improve in all price segments.

For us the proof is also in our own transactions and buyer traffic. So far this year we have experienced record buyer traffic on our websites, and with in-person property showings of Palm Springs area homes and luxury condos. Our sales transactions to date are six percent (6%) ahead of 2012, which was also another record year for Sheri Dettman & Associates.

New Construction Home Sales At Stonefield Estates

Three new construction homes have also been reserved at Stonefield Estates at Santa Rosa in Southwest Indio. Two plan-5's and one plan-3 home will soon be breaking ground at Stonefield Estates where our model home is open Thursday - Sunday from 11AM to 3PM.

Sales of New Homes Strong Nationally & Locally

Stonefield Estates In Southwestern Indio

Sales of new homes rose 4.4 percent in the U.S. in November from October to the fastest sales pace in more than 2-1/2 years. New home sales have also increased 15.3 percent over the past twelve months.

And here in the Palm Springs area new home sales are doing well in all price points from entry level to luxury, as the desert's inventory of resale homes remains historically low.

New Home Quick Facts

Though new homes represent a small portion of the growing housing market, they have a big effect on the economy. Three new jobs for one year are created with each new home built.

Many people don’t realize that we can assist buyers with both new and resale homes here in the desert. My team and I stay current on all Palm Springs area new home developments, inventory and sales comps. We’re here to help by adding a layer of independent objectivity to your new home sales experience. Our value added service costs you nothing but can often result in a smoother and more profitable real estate transaction.

Palm Springs Real Estate Prices Up, Sales Down

Golf course homes at PGA West La Quinta

Average Single-Family Home Selling Price Up 19%

The number of home sales in the Coachella Valley fell 16.7% in September compared to September of 2011 as the inventory of available homes here in the desert continues to decline. Meanwhile the average sales price for a single-family home rose 19% during this same period.

Falling Palm Springs Real Estate Inventory

• 1,995 single-family homes were available for sale last month
• This compares to 3,065 on the market in September of 2011
• 5,752 homes were available in September of 2010

The relatively low supply and competition for quality properties has pushed up both the median and average prices in many communities. The averaging selling price for single-family homes valley wide increased over 19% in September compared to September of 2011. Indian Wells and La Quinta showed the largest price increases with 34% and 29% respectively compared with September ‘11.

Palm Springs Condo Prices Rise 13% Valley-Wide

Condo prices are on the rise as well with a 13% valley-wide increase year-over-year in September. Only 860 condos were listed for sale valley-wide during September.

The Palm Springs real estate market is continuing to heal itself from the bottom up and new home builders have re-started several desert projects that had been up on hold. Say tuned!

Palm Springs Area 1-Year Price Changes by Zip Code

The chart above shows the one year average sale price changes (all up for these zip codes) by city and zip code for the sales period of Quarter-2 of 2011 through Quarter-2 of 2012 and for zip codes with 500 or more sales during the year. Rancho Mirage and Indian Wells are not listed as there were not over 500 sales in each of those smaller zip code segments.

Looking at average sale prices for this one year period of time gives us a general idea of what the market is doing, but for each buyer and seller we need to focus on their specific community, price segment and inventory situation. At Sheri Dettman & Associates, one of our goals is to provide our clients with as much information as possible knowing that informed clients generally get a better price whether buying or selling a property.

Data Source: Desert Area MLS for zip codes with 500 or more homes sold for the period. Information presented here s deemed to be correct but is not guaranteed.

Say Hello To More New Yorkers!

Virgin America, the California-based airline that is reinventing travel, today announced that it is bringing more of its upscale, low-fare flights to Palm Springs International Airport (PSP) from both San Francisco International Airport (SFO) and from New York’s John F. Kennedy International Airport (JFK).

Just in time for winter getaways, the airline is expanding its footprint at Palm Springs, with a new 2012-2013 seasonal flight schedule that will include a new weekly Saturday nonstop flight from JFK to PSP – the only nonstop flight offered from the New York City area to Palm Springs.

Daily Non-Stop Service JFK New York To Palm Springs

The new service will add to Virgin America’s existing seasonal daily connecting flight schedule from JFK to PSP and its daily nonstop schedule from San Francisco International Airport (SFO) to PSP. Tickets are on sale as of today at www.virginamerica.com and 1-877-FLY-VIRGIN.* Advetised fares start from $79 SFO-PSP and introductory fares from $149 JFK-PSP.

“Since entering these Palm Springs markets, we’ve seen strong demand for our unique flight service. We’re pleased to be expanding in the market and offering a new nonstop option for travelers coming from New York to the Desert oasis this winter,” said John MacLeod, Senior Vice President of Planning and Sales at Virgin America.

The Ultimate Outdoor Destination

Palm Springs and the other cities that make up the region, is the ultimate destination for outdoor adventure, arts and culture, gaming and entertainment. Palm Springs, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, Indio and other desert cities offer streets lined with palm trees, the best in shopping, art galleries and museums and outdoor dining – all amidst breathtaking scenery. In addition to luxury resorts and world-class golfing, the region has welcomed an influx of hip boutique hotels and landmark events like the Coachella Valley Music and Arts Festival. Palm Springs has a history as the holiday home of many Hollywood stars from the 1940s on – and is known as the center of “Desert Modernism" mid-century modern architecture.

Hideaway Golf Club Home And Lot Sales Increase In 2012

The Hideaway Clubhouse

Hideaway Golf Club home sales continue to track well above 2011. Year to date 20 Hideaway homes have sold compared to 14 sold during the same January through August 15th period of time in 2011. The average list price of sold homes so far this year at Hideaway is $2.5 million.

Sales of Hideaway custom lots have also increased with 15 sales year-to-date compared to just 9 during the same period of 2011. The average sale price for a Hideaway lot also increased from $287,000 in 2011 to $425,000 for the first eight months of this year.

New Home Builders Active Again, Sheri Interviewed In Desert Sun

The significant drop in the supply for Palm Springs area resale home inventory has builders starting to build new homes again in the desert. Local Desert Sun Newspaper reporter Mike Perrault called to interview me last week about this trend and the article was published on July 1st.

Major Points of the Desert Sun Real Estate Article

In June, the inventory of existing single-family houses for sale in the valley fell to 2,023, with another 1,023 condos available, the California Desert Association of Realtors reported. That's down from about 6,200 in February 2011.

“I think (builders) recognize, and they're telling me, that they believe was are finally at the bottom,” said Bill Blankenship of the building Industry Association of Southern California.

For giant home builder Lennar, customer traffic and sales have doubled at its communities over the past four months, said Greg McGuff, president of homebuilder Lennar's division that encompasses Riverside, San Bernardino, Los Angeles and Ventura counties. After selling out its mid-century modern homes at the Motif at Escena community in Palm Springs, Lennar has introduced new models at the Skylar and Avant areas within Escena. “We're selling well into the future and raising prices in all of our communities,” McGuff said.

Sheri's Comments In The Desert Sun

Sheri Dettman, a Realtor with Sheri Dettman & Associates, affiliated with Luxury Homes by Keller Williams Realty in La Quinta, received an invitation last week to help market Lennar's homes Toll Brothers Luxury Homes.

Dettman said builders have seen that valley home prices are rising, inventory is tight and new homes are again on buyers' radars.

Half a dozen new-home developments that stalled have been revitalized by new owners, and other builders are stepping in with smaller developments of 20, 30 or 40 homes.

Dettman is communicating with about 600 interested buyers, and one challenge she is seeing is that there aren't a lot of active new-home developments.