During the last six months in La Quinta, 594 homes and condos were sold totaling over $360 million. This puts the average La Quinta sale so far this year at $606,322.
Of the total, $55 million were bank owned property sales and $38 million were short sales. The ratio of regular sales versus bank owned and short sales continues to grow at a brisk pace over last year.
The National Association of Realtors® reported today in the national media that existing (resale) home sales nationwide dropped 27.2% in July of 2010 compared to July ’09. “National sales are at the lowest level since the report began being released in ’99, and single family homes – which account for the bulk of sale transactions – are at the lowest level since May ’95,” the report indicated.
In marked contrast, sales here locally increased during July 2010 in La Quinta (up 3%), Palm Desert (up 9.5%) and Rancho Mirage (up 12%) compared with July ’09. The average sales price also increased in all three cities.
Palm Springs and Indio did show slightly reduced sales in July as these cities recorded lower average sales prices, but again the average sales prices increased in both Palm Springs and Indio. Palm Desert and Rancho Mirage posted a decline in the average July 2010 sales price, which seems to reflect a large number of condo sales in those cities that month.
La Quinta July Sales
July 2009: 106 sales @ $477,228 average selling price
July 2010: 112 sales @ $542,238 average selling price
Palm Desert July Sales
July 2009: 95 @ $431,295
July 2010 106 @ $300,092
Indian Wells July Sales
July 2009: 17 @ $926,265
July 2010: 17 @ $1,009,288
Rancho Mirage July Sales
July 2009: 44 @ $615,166
July 2010: 50 @ $504,030
Indio July Sales
July 2009: 141 @ $174,242
July 2010: 110 @ $199,128
Palm Springs July Sales
July 2009: 151 @ $295,156
July 2010: 128 @ $315,805
So there you have it. Real estate continues to be local and it’s all about location, location, location! Winter is approaching and an increasing number of people are looking for their place in the sun!
Desert home and condo buyers continued to gravitate to the communities of La Quinta, Indian Wells, Palm Desert, Rancho Mirage and Palm Springs during April and May as both unit sales and prices rose.
La Quinta led the way with home sales up 42% in April and 22% in May compared to the same months of ’09. La Quinta’s median sales price also rose 22% to $380,000 in April, up from $310,000 in April ’09. This is in marked contrast to the hard-hit foreclosure zones of Coachella, Desert Hot Springs, Indio, Thermal and Thousand Palms, which saw sales contract over April and May of ‘08.
Luxury Market Continues Improve
Luxury home sales activity also picked up significantly compared to April and May, ’09. Seven sales were recorded in April, ranging from $1.2 million to $6 million. In May the pace continued with a home in Palm Desert selling for $7.8 million.
Home sales across the Coachella Valley rose 6 percent in June compared with June ‘09, bucking both state and national home-sales declines, new real estate reports show. Statewide, home sales declined 4.2 percent in June over the same period of last year.
Much of the valley's gains came as a result of a whopping 38 percent increase in desert condo sales. Some 274 condos sold across the valley during June. Unlike rising home prices, the rise in condo sales is attributed to a lower median price for condos of $192,500. The median price for valley home sales rose another 8.1% to $207,000 during June. The median represents the price at which half the homes sold for more and half sold for less.
Sales increases in June followed both sales and price increases in April and May when 2,050 homes were sold over the two-month period and median prices should double-digit increases.
It looks like the affordability factor for desert homes and condos is continuing to drive month-to-month increases in re-sales. Interest in bargain priced luxury properties also continues to grow from prospective buyers from around the globe.
The Coachella Valley continued to better national real estate trends as local April sales rose 8.1% and May sales recorded a 7.8% gain over the same months in ‘09. This makes the seventh consecutive month of positive sales gains.
Sales in La Quinta were up 42% in April and 22% in May compared to the same period of '09. Buyers of resale homes continued to gravitate to the communities of La Quinta, Indian Wells, Palm Desert, Palm Springs and Rancho Mirage which all recorded sales gains.
The latest sales numbers seem to show that the expiration of the Federal home buyer tax credit in April has not effected our desert market as it apparently did in the national real estate market. The second home market in the desert continues to be very active as buyers continue to take advantage of some great real estate opportunities while resale inventory at several key price points continues to shrink.
Did you know that over this decade 11,000 baby boomers are turning 50 each and every day? The ‘boomer’ generation here in America and Canada represents a huge demographic. Many boomers are now looking, or soon will be, for a sun-belt home as a primary residence, second home, vacation home, or rental/investment property.
For boomers looking for year-round sunshine and warm temperatures, the choices really narrow down to the Palm Springs area, southern Arizona, Florida, and Hawaii. The Coachella Valley offers a climate, amenities, and lifestyle many boomers are looking for, with resort lifestyle communities and properties in a wide variety of price ranges.
As the economy hopefully continues to recover, we expect the release of a pent up demand from boomers and others for resort lifestyle properties.
Desert property sales continued to grow in the first quarter of 2010 versus the same period of ’09.
January - March 2010 Coachella Valley Sales Comparison
Nationwide, sales of homes at $500,000 and less are reportedly still in flux, so seeing a 36% local increase this quarter shows that buyers here truly want to find their place in the sun! More details will follow in my monthly e-newsletter.
CNBC.com® reported yesterday “high-end housing sales are making a surprise comeback.”
The National Association of Realtors (NAR) also reported that in February of this year, homes priced at $1 million or more in the western U.S. were up by 35% over the same period of last year.
Here in the desert, sales of luxury homes in the first quarter on 2010 were up 49% over the same period of ’09 so once again we seem to be out pacing the most of the nation.
What’s seems to be creating the high end boom is a combination of lower interest rates, bank lending and consumer confidence. Bargain prices don’t hurt either! Rates are down for jumbo loans as banks are now seeing benefits in making jumbo loans.
Interest Rates on Jumbo Loans Lower
QuickenLoans® reports that “Banks are doing jumbo loans now a lower interest rates because they see it as a secure way to make a profit these days.” With interest rates for bigger loans falling, consumer confidence seems to be rising for those in the higher income brackets. It disappeared as the economy slumped–at least when it came to luxury homes. Locally for us we continue to experience about 80% cash buyers in the luxury home segment.
Other mortgage lenders are reporting that people seem to be more comfortable in thinking the luxury home market is not collapsing. Home values are stabilizing and it’s been a matter of following the leader. One person sees others buy and they join in. That’s been happening nationwide and its definitely happening here in the desert.
Nationwide, sales of homes at $500,000 and less are reportedly still in flux in contrast to our 36% local increase this quarter, which likely indicates that local buyers truly want to find their place in the sun and agree that the price is right!