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Real Estate Market Updates

Million Dollar Bank Owned Properties

Million Dollar Bank Owned Properties

Toscana Country Club, Indian Wells

Inventory of bank owned homes listed at $1 million and higher in the Palm Springs area real estate market continues to tighten up. As of today there are only five properties owned by banks that are listed in this luxury price segment.

  • 75583 Via Cortona, Indian Wells at Toscana Country Club / $1,799,900
  • 75256 Desert Park Drive, Indian Wells $1,195,000
  • 40700 Paxton Drive, Rancho Mirage at Thunderbird Terrace
  • 73956 Desert Garden Trial, Palm Desert at The Reserve
  • 533 Mesquite, Palm Desert at Bighorn Golf Club

During the last six months just six bank owned million dollar homes sold in the desert.

Palm Springs Real Estate Sales Up In 6 of 7 desert cities!

Palm Springs Real Estate Sales Up In 6 of 7 desert cities!

Palm Springs area real estate sales increased in 6 of 7 area cities during the last six months of 2011. It appears that buyers in increasing numbers are continuing to take advantage of some of the best opportunities in over a decade. But let’s let the sales numbers speak for themselves.

City-by-City Sales For Last Six Months of 2011 (compared to the same period of '10)

  • Indian Wells: +17.71% (96 homes sold compared to 79 in '10)
  • Rancho Mirage: + 7.07% (297 homes sold compared to 276 in '10)
  • La Quinta: + 5.94% (640 homes sold compared to 602 in '10)
  • Palm Springs: + 5.28% (796 homes sold compared to 754 in '10)
  • Palm Desert: +3.10% (796 homes sold compared to 754 in '10)
  • Cathedral City: +2.02% (396 homes sold compared to 388 in '10)
  • Indio: - 1.67% (600 homes sold compared to 610 in '10)

In addition to the increases in home sales, the average sale price for the combined seven cities increased by 2.67%. The average sale price in Indian Wells was up an impressive 20.06%.

2011 Palm Springs Area Average Home Sales Area by City

  • Indian Wells: $813,270
  • Rancho Mirage: $515,676
  • La Quinta: $390,830
  • Palm Desert: $314,808
  • Palm Springs: $277,139
  • Indio: $179,140
  • Cathedral City: $145,140

Keep in mind that real estate is local, very local!

Mirada Estates, Rancho Mirage $3.295M Bank Owned Sale

Mirada Estates, Rancho Mirage $3.295M Bank Owned Sale

The one of a kind showpiece by noted designer Guy Drier at Mirada Estates in Rancho Mirage features 6,782 square feet and is a true showplace.

I toured this home recently and it is one of the most impressive homes in the desert. The private views over the valley floor from the Mirada hills were equally as impressive as the home, which includes numerous water features flowing off the roof.

This home was recorded as sold today in the MLS for the full asking price by the bank of $3,295,000. Why full asking price? Many people assume that the banks asking price is only the starting point for negotiations. That depends on the rest of the story behind the property and the current market trends.

Previous Asking Price: $4.495M

The original owner had originally listed this property for sale at $4,495,000. And in a normal market and economy that is likely what the true value would be.

Over the last six months there have been less and less bank owned homes coming on the market. Part of the reason is likely that banks are getting better at working with sellers in agreeing to short sales and those properties are no longer going on to become foreclosure properties.

Banks are also pricing most foreclosure properties at just under market value. In this case this home very likely sold for under the replacement value. The buyers got the home for less than it would have cost to by a custom lot (which had sold for $1 million), pay Guy Drier for the design and then build the home over a period of 12 to 18 months.

Like many bank owned desert homes, I’m told there were multiple buyers interested in this unique property. The new owner paid the banks asking price and the others bidders are likely wishing they had.

MLS Listing #2142153 Courtesy of Windermere Realty

Palm Springs Area Sales Update: Homes Over $1 Million

Palm Springs Area Sales Update: Homes Over $1 Million

Hideaway Golf Club, La Quinta. Photo: Sheri Dettman & Associates ©

Sales of luxury homes that sold over $1 million here in the Palms Springs Real Estate Market continue to very active. Let’s take a look at where the action has been during the last six months. Each community is listed with the number of million dollar plus sales, the average price paid and the average selling price per square foot.

Golf Community Sales Over $1 Million Last 6 Months

  • Toscana Country Club, Indian Wells: 13 sales / $1.5M Average sale ($361 per Sq. Ft.)
  • Bighorn Country Club, Palm Desert: 10 sales / $2.7M Average sale ($652 per Sq. Ft.)
  • Hideaway Golf Club, La Quinta: 8 sales / $1.9M Average sale ($422 per Sq. Ft.)
  • PGA West, La Quinta: 6 sales / $1.5M Average sale ($283 per Sq. Ft.)
  • Ironwood Country Club, Palm Desert: 6 sales / $1.5M Average sale ($370 per Sq. Ft.)
  • Andalusia Country Club, La Quinta: 5 sales / $1.6M Average sale ($357 per Sq. Ft.)
  • Rancho La Quinta Country Club: 4 sales / $1.1M Average sale ($295 per Sq. Ft.)
  • Vintage Club, Indian Wells: 4 sales / $2.6M Average sale ($410 per Sq. Ft.)
  • Mission Hills, Rancho Mirage: 3 sales / $1.1M Average sale ($290 per Sq. Ft.)
  • The Reserve, Palm Desert: 10 sales / $2.2M Average sale ($495 per Sq. Ft.)
  • Mountain View Country Club, La Quinta: 2 sales / $1.1M Average sale ($270 per Sq. Ft.)

Non-Golf Community Sales Over $1 Million Last 6 Months

  • Villas of Mirada, Rancho Mirage: 6 sales / $1.2M Average sale ($364 per Sq. Ft.)
  • Mirada, Rancho Mirage: 4 sales / $1.9M Average sale ($364 per Sq. Ft.)
  • Old Las Palmas, Palm Springs: 4 sales / $1.9M Average sale ($364 per Sq. Ft.)
  • Waterford, Rancho Mirage: 4 sales / $1.4M Average sale ($268 per Sq. Ft.
  • Thunderbird Heights, Rancho Mirage: 3 sales / $1.7M Average sale ($278 per Sq. Ft.)
  • Cahuilla Hills, Palm Springs: 3 sales / $1.7M Average sale ($284 per Sq. Ft.)
  • Movie Colony, Palm Springs: 2 sales / $1.4M Average sale ($539 per Sq. Ft.)

Traditional Sales Zoom, Distressed Sales Slow

Traditional Sales Zoom, Distressed Sales Slow

Hideaway Golf Club La Quinta

51% of our sales so far during 2011 have been traditional non-distressed property sales. Not to long ago our home and condo sales were equally split at 1/3 traditional, 1/3 bank owned and 1/3 short sales. Here’s the sales breakdown so far this year:

  • 51% Traditional sales (non-distressed properties)
  • 17% Bank owned homes (also known as REO’s or foreclosures)
  • 17% Short sales

Sales Increase 30% Over Last Year

Sheri Dettman & Associates is currently tracking a 30% sales increase for this year over 2010. Interest and inquires from prospective buyers continues to grow. 2011 will be our fifth year in a row of double-digit sales increases, which seems to confirm that people continue to desire their own home in the sun here in the desert. What will 2012 sales look like? I'll go out on a limb and estimate that we'll record a 20% increase next year. Stay tuned.

September Palm Springs Area Home Sales Up 9.4%

September Palm Springs Area Home Sales Up 9.4%

Golf Course homes at Mountain View Country Club, La Quinta

Coachella Valley home sales rose 9.4% in September compared to September 2010, outpacing home sales throughout other parts of Southern California, a new report from Data-Quick Information Systems shows.

The valley's strength as a second-home market continues to help drive sales. One positive sign was that the percentage of distressed sales continues to fall, said Greg Berkemer, executive vice president of the California Desert Association of Realtors. “A recovering market needs to see that continue every month,” said Berkemer, noting, “The desert had a better-than-expected summer.”

Since January of this year, 8,399 valley homes and condos have sold in the Palm Springs area desert communities. That’s nearly 5% more than in the first nine months of the previous year of 2010, DataQuick reported. The Coachella valley is on track to see more than 10,000 home and condo sales this year.

Monthly Sales By City Zip Code: September 2011 versus 2010

  • Palm Desert (zip code 92211) +60.9%
  • La Quinta (92253) +34.1%
  • Indio/Bermuda Dunes (92203) +11.7%
  • Palm Desert (92260) +10%
  • Cathedral City (92234) +4.2%
  • Palm Springs (92262) +1.4%
  • Indian Wells (92210) +0%
  • Rancho Mirage (92270) -11.3%
  • Palm Springs (92264) -9.1%

Loonie Rides Past Parity With US Dollar. Canucks Follow!

Loonie Rides Past Parity With US Dollar. Canucks Follow!

The Canadian Dollar rose above par with the US Dollar today as investors cheered an agreement reached by European leaders on a plan to resolve the euro zone’s debt crisis.

The strengthened Canadian Dollar represents a five percent savings to Canadian buyers versus just 30-days ago when the loonie had tumbled as low as just 95 cents US.

The last time the loonie was at par, our sales of Palm Springs area properties to Canadian buyers increased substantially.

Luxury buyers do especially well when the loonie is at par. One luxury buyer exclaimed to me earlier this year when the loonie was above par, "We saved an additional $100,000 on our $2 million golf course home."

Related Article: Information For Canadian Buyers

Desert Bank Owned Homes Selling Near Listing Prices

Desert Bank Owned Homes Selling Near Listing Prices

Bank owned home at PGA West, La Quinta

Banks don’t want to own homes that they’ve foreclosed on and so they generally price them to sell. Early on in the mortgage meltdown we saw banks give many properties away at well under market values. Banks have gotten a better handle on pricing over the last year or so and now most bank-owned homes are now selling for close to the banks list prices. Most of these properties are still a very good buy, but I suggest to clients that we examine each property on a case-by-case basis to find the best low hanging fruit.

Our team recently ran the numbers for bank owned properties sold during the last six months. We limited our stats to those properties sold for $100,000 and higher. Of 846 properties sold by banks the average sale price was $256,836 and the high price was $2.5 million. The list to sale price percentage was pretty interesting and we’ve broken them down by the time each property was on market before being sold. Note that these time periods include the contingent periods during escrow.

Bank Sale Prices Versus List Prices By Time On Market

  • 0-30 Days on market: 101.94% of list price (198 sales)
  • 31-60 Days on market: 99.06% of list price (149 sales)
  • 61-90 Days on market: 97.04% of list price (85 sales)
  • 91-120 Days on market: 96.75% of list price (85 sales)
  • 120+ Days on market: 95.59% of list price (329 sales)

These sales represent $203 million in bank owned sales over the last six months. That may sounds like a lot except that 3,648 properties were sold during these six months of which only 719 were bank owned equaling 23% of total sales.

Bottom line with bank owned properties is the offering price will generally be within 5% of the actual selling price at worst case. Entry-level properties (under $300,000) will have the most competition and generally sell for at or slightly above listing price dependent of how many offer the bank receives.

Only 13 Bank Owned Luxury Homes Sold Last 6 Months

Luxury homes (those above $1 million) will likely have a little more room to negotiate. In the last six months only 13 of these 846 bank-owned properties were sold for over $1 million with the average sale price of these luxury homes being $1.5 million.

47 Bank Owned Homes Listed, 14 Remain In 16-Days!

47 Bank Owned Homes Listed, 14 Remain In 16-Days!

MLS Bank Owned Home Screen shot from 9/17/11

Everyone loves a bargain and a bank owned home usually offers buyers a great opportunity and value. Regular readers of my blog know that banks don’t want to own homes. Banks want to sell foreclosed properties and they want to sell them quickly. So how quickly have bank owned properties been moving lately?

I created a custom report today for bank owned homes that were listed (offered for sale) between 9/1/11 and 9/16/11. I used the popular and active price range of $350,000 to $999,000. 47 foreclosure properties were listed during this 16-day period.

Here’s Where It Gets Interesting!

33 of the 47 homes and condos are already shown as pending (or contingent pending) with having accepted offers in 16 or less days! Only 14 properties remained, and many of these homes were just listed in the last few days.

I took a screen shot of a small portion of today’s Desert Area MLS screen that we agents use in order to give you a graphical look at what I’m seeing. The green REO listings are ‘active’ or available, while the blue, yellow and blue listings are at some stage of having an accepted offer or already in escrow (pending).

Buyer Tip: When we discover a bank owned property that looks like a great opportunity, let’s be prepared to pounce! My team and I have helped people discover and win great opportunities in bank owned homes from $200,000 to over $2 million.

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