Blog Articles

Rancho Mirage Single Family Home Sales - 54% overall increase, 60% Sold for ALL CASH

The Cathedral City Cove - A hidden gem tucked up in the hills

Indian Wells Real Estate - Is now the time to Buy or Sell?

The City of Indian Wells, Ca 92210 is one of the most beautiful and affluent cities in the Coachella Valley (Palm Springs area), as well as the rest of the country.

The full time population of 5,025 residents doubles in the winter season to over 10,000 residents spread out about 15 square miles. The city boasts 4 world-class resorts, The Esmeralda, The Hyatt Grand Champions, The Miramonte Resort and Spa and the Indian Wells Resort founded by Lucille Ball and Desi Arnaz. The city is also home to the Indian Wells Tennis Garden, host to the BNP Paribas Open, which kicked off the 2010 season on Monday of this week and runs through March 21. A large portion of the homes are located in various communities in the Indian Wells Country Club which is tucked right up to the gorgeous Santa Rosa Mountains. Across the street from the Country Club is the spectacular new Indian Wells Club which is open to the public for casual and fine dining as well as shopping in the pro shop.

I love selling homes in Indian Wells and have to remind myself not to take the natural beauty of this area for granted. People are always asking me how the real estate market is in Indian Wells and has it been hit as hard as the rest of the country’s downturn. I put together the following charts of the market over the last few years and summarized the data from the last 6 months to answer that question for you. The data is broken out between Single Family Homes and Condos.

The number of single family homes and condos sold per month in Indian Wells is relatively small compared to the other 8 Desert cities in the Coachella Valley. The graphs, therefore, show more peaks and valleys because a single sale can swing the chart wildly in one direction or another. However, the charts below still illustrate the overall trends of the local market.

The chart below illustrates that the median price of single family homes fell considerably during 2008, was very steady during 2009 and appears to be climbing in 2010. Additional months of 2010 data will determine the true trend of the median home price, but the activity of buyers looking at homes in Indian Wells has gone through the roof so far this year. Buyers seem to have a new found sense of confidence that the market has bottomed and that there are great buys and magnificent properties still to be found. Many sellers did not list their homes in the past 24 months because they could afford to wait for the market and prices to get better. In 2008 many homes were listed, but the number of potential buyers had dramatically declined. Sellers are now listing again and many are getting more realistic about proper pricing. Many sellers were in denial for the last few years and overpriced their homes with a frustrating few showings as a result. Buyers in this high price category are savvy and do not throw their money away. Perhaps that is why they have money in the first place. Since many of the homes sold in Indian Wells are second or third homes, those buyers were being more cautious with their discretionary spending while the economy was declining. Obviously, I am delighted the savvy buyers are now returning to the market.

The following is a recap of the market statistics for the last 6 months for Indian Wells broken out by Single Family Homes and Condos (As of 3-10-10):

Single Family Homes:

251 Single Family Homes Actively listed from $289k - $18 Million (Click Here for details of these listings)

• 5 are foreclosures from $289k - $1.495k
• 9 are short sales from   $399k - $1.699k

15 Single Family Homes are in the Contingent Status from $300k - $2.500k

• 1 is a foreclosure at    $595k
• 3 are short sales from $445 - $700k

6 Homes are Pending from $399k - $1.750k

• 0 are foreclosures
• 0 are short sales

69 Homes Sold in the last 6 months from $180k - $3.425k

• 12 were foreclosures from $180k - $765k
• 8 were short sales from    $195k - $658k

Click Here to see the the newest Single Family Home listings in Indian Wells

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Condos and Townhomes:

The chart below illustrates that the median price of condos, as well as the number of condos sold in Indian Wells are increasing.

75 Condos Actively listed from $129k - $1.295k (Click Here for details of these listings)

• 2 are foreclosures from $185k - $388k
• 3 are short sales from   $129k - $350k

3 Condos are in the Contingent Status from $115k - $449k

• 0 are foreclosures
• 0 are short sales

1 Condo is Pending at $155k

• 1 is a foreclosure at $155k
• 0 are short sales

21 Condos Sold in the last 6 months from $90k - $975k

• 2 were foreclosures from $235k - $573k
• 3 were short sales from   $273k - $290k

Click Here to see the the newest Condo & Townhome listings in Indian Wells

These statistics show that there are very few foreclosures and short sales in Indian Wells and when they do hit the market, they are normally snapped up quickly. I have a customized system that alerts my buyers of hot deals as soon as they hit the market. You snooze and you loose in this market. Having said that, quite often the best buys are of non-distressed properties where the sellers are motivated for one reason or another. I see this every day.

Since there are so few foreclosures and short sales in Indian Wells, the comps have not been pulled down nearly as much as the comps in so many other communities that have been stricken by so many foreclosures and short sales. The sellers, for the most part, have finally understood the reality of the market and have been more realistic in their pricing. I turn down listings almost every day throughout the desert if sellers are not realistic with their pricing. I do not think it is fair to them to anticipate a sell that will probably never happen at that price and inconvenience them with prospective buyers traipsing through their homes. I tell them, if they do not have to sell right now, they should just enjoy their home for now and wait for the market to improve. On the other hand, many smart home owners are selling now at a realistic price and then buying another home at even a better price/value. Many sellers are taking advantage of this market and “upgrading” to a better property and are still coming out ahead.

For detail information on any of the properties in Indian Wells or anywhere else in the Desert or to set up a private showing, please call me at 760-567-9296 or visit my website at www.JerryShea.com.

Click Here to Search the MLS for Homes in Indian Wells

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Indian Wells Real Estate:

Hit for Haiti - Tennis in Indian Wells, CA

Monday kicked off the 35th year of the fifth largest tennis tournament in the WORLD at the beautiful Indian Wells Tennis Garden.

The top 77 men and 75 of the top 77 women will compete for the top prizes in this years BNP Paribas Open. In December, billionaire Larry Ellison, co-founder and CEO of the Oracle software company, bought 100% of the BNP Paribas Open and the Indian Wells Tennis Garden including the 55 acres of prime Indian Wells land.  Ellison, according to Forbes magazine is the fourth richest man in the world with an estimated net worth of $22.5 billion. Just a few weeks ago he brought the Americas Cup back to the United States by wining the race with his BMW Oracle racing team in Valencia, Spain. To kick off this years 35th Open season, he lined up Andre Agassi, Roger Federer, Rafael Nadal and Pete Sampras for a doubles exhibition match called Hit for Haiti to raise money for the American Red Cross relief efforts. The event will be held at 7:30 PM this Friday, March 12. It was also just announced that a women’s doubles match will be held on Thursday afternoon, March 11 with Steffi Graf and Lindsay Davenport playing against Martina Navratilova and Justine Henin. Can you imagine how exciting it will be to see these 8 legends of tennis in your own backyard raising at least $1 million for earthquake ravaged Haiti?

The BNP Paribas Open is the most attended tennis tournament in the WORLD, outside of the four Grand Slams.  Monday, March 8, was the first day of women’s qualifying and throughout the day the top seeded players in the world started arriving in the Coachella Valley for what promises to be one of the best tennis tournaments in the 35 year history of the Open. In between selling houses in one of the most gorgeous areas of the world, I am looking forward to stopping by and watching the best tennis players in some exciting tennis matches. Many people reading this article will not have the privilege of physically being in the Gardens, but hopefully you will be able to catch it on TV. In addition to the great tennis, make sure you look at the aerial coverage showing the unsurpassed beauty of Indian Wells and the surrounding cities in the Palm Springs area of the Coachella Valley. World class tennis is only one of the myriad of things to do in the Desert. Every week there are major golf tournaments or art festivals or music festivals, street fairs, polo matches and just plain relaxing in the good life of the Desert. By the way if you like what you see, give me a call at 760-567-9296 or visit my website at www.JerryShea.com and I will be happy to find you a wonderful home here. For more information on the Indian Wells real estate market, please take a look at my recent blog article, Indian Wells Real Estate - Is now the time to Buy or Sell?. You too, can be part of the good life. Tennis anyone?

BNP Paribas Open

When: March 8-21

Where: Indian Wells Tennis Garden

Tickets: Visit: www.bnpparibasopen.org, call (800) 999-1585 or (760) 200-8000 or visit the box office at 78-200 Miles Avenue in Indian Wells, CA 92210

Hit For Haiti

When: Friday March 12. 7:30 PM ,  First match of the evening session

Exciting Changes are Happening in the Cathedral City Cove

I just listed and just sold 3 fantastic properties in the Cathedral City Cove and wanted to share with you the exciting changes going on in this wonderful, secluded neighborhood in the desert.

A few days ago I closed 38080 Charlesworth Drive. I put the for sale sign in the ground on the morning of July 24th, 2009 and within 4 hours the tractors descended, closed off the street and started tearing up all of the asphalt pavement in the last phase of the Cathedral City Sewer project. The street was basically closed for almost 6 months while I was trying to get the property sold. Not an easy task when REALTORS and agents can’t get to the house. However, a smart agent showed his clients the property and they loved it and closed escrow in 16 days. By the time the new owners moved in, the new streets, curbs and driveways were completed and looking great.  For the last 3 years, the Cove has been under siege by massive tractors and earth movers because the neighborhood was converted from septic systems to a new sewer system that also included new streets, curbs and driveways throughout the Cove. The Cove is a hidden gem in the desert because of it’s beautiful topography, surround on 3 sides by the rolling Santa Rosa Mountains and some of the most scenic hiking trails in the desert. It is nestled in the hills just above Highway 111 and tucked between Palm Springs and the multi-million dollar homes of Mirada in Rancho Mirage. It seems remote because of it’s natural boundaries, but is located just minutes from Palm Springs and Rancho Mirage. The Palm Springs Airport is only about 8 minutes away, but the flight pattern does not go over the Cove. When the economy turns around the Sheraton Hotel is planning on building a resort hotel on Hwy 111 just east of the Cove and will include a planned golf course that will go up the wash on the eastern side of the Cathedral City Cove. The building site has been cleared and is ready to go as soon as the financing is in place.

I also just listed a fantastic property at 67945 Foothill Rd on what many think is the best street in the Cove. Foothill Rd. is the last street at the top of the Cove and is very private and serene. This 3 bedroom, 2 bath, 1706 sq. ft. home sits on a .43 acre lot that goes up the hill and has miles of open mountain ranges behind the property. From the top of the back yard you can see all the way across the valley to the back of the Joshua Tree mountains.  For those of you who are familiar with “The Living Desert” in Palm Desert you will think you have been transported to your Private ”Living Desert” in your own yard. It is practically impossible to find such a special property like this anywhere in the desert and especially not for under $350,000. If you would like a private showing of this peaceful property please call me at 766-567-9296 or use my Contact page to set up an appointment. Check out the virtual tour, here.

I recently sold the large home just to the east of this property at 67955 Foothill Rd. This property is in escrow and is contingent-upon the sale of the buyers property. This 4 bedroom, 4 bathroom, 3896 sq. ft home with a huge family room sits on a spectacular .42 acre terraced property and was the steal of the year. By the way, we are taking back-up-offers for this property in case the buyers’ home does not sell in time, so let me know if you are interested.

So what has the real estate market looked like in the Cove for the last 6 months?

The real estate market in The Cove has been one of the busiest markets in the desert in the last 6 months. 3-5 years ago The Cove was one of the hottest areas for people to move into. Many buyers were coming from Los Angeles, San Diego, San Francisco, Washington and Palm Springs to name just a few of the main feeder areas. As a result prices were climbing rapidly,  as they were throughout the desert, California and the rest of the U.S. Many buyers were buying these homes as second homes, but quickly rearranged their lives to make The Cove their full time residence.

When the real estate bubble burst throughout the U.S. and the desert a few years ago, The Cove was hit with a rash of foreclosures and short sales. As a result, property prices plummeted by 30-60%. At the same time the streets were all being torn up for the new sewer and street project and it looked like a war zone. The new sewers, streets, curbs and driveways are now complete and look fantastic. In the last year most of the foreclosures and short sales have been absorbed and the prices have stabilized. There will still be more foreclosures and short sales, but the banks are letting the foreclosures just trickle out. In spite of many rumors, the banks are not going to dump a new wave of foreclosures on the market. They are pricing them below market to get a feeding frenzy started and in most cases there are multiple offers on every well-priced property on the first day they are listed and they are selling for considerably more than list price. Believe me, they don’t last long. The banks are still playing games with short sales and they are taking several months to close, if they close at all. Word has it that this process is getting better. I have seen some improvement, but there is a long way to go. Buyers have to be careful that they don’t get stuck in a short sale process and miss out on serious motivated sellers who can sell their properties immediately.

Many buyers have taken advantage of the First Time Home Buyer Tax credit which was extended from November 30 to April 30. A home must close escrow by June 30, 2010 in order to qualify for the tax credit. This program has really given a boost to the real estate market throughout the desert and in The Cove because of the affordability of these wonderful properties.

44 % of the homes sold in the last 6 months in The Cove have been foreclosures and currently there are only 3 foreclosures for sale, once again proof that there are fewer foreclosures on the market than in the last several years. There are only 3 short sales on the market today and only 2 short sales closed in the last 6 months, while 5 of the 10 contingent properties are short sales and 2 of the 5 pending properties are short sales.

The following is a recap of the market statistics for the last 6 months for the Cathedral City Cove (As of 2-03-10):

There are a total of 1091 properties in the Cathedral City Cove of which 385 are in the Lower Cove, which is between Hwy 111 and Terrace Rd. and 706 properties are in the Upper Cove, which is between Terrace Rd. and Foothill Rd.

22 Homes Actively listed from $80k - $699k (click here  for details of the most recent active listings)

• 3 are foreclosures from $80k - $314K
• 3 are short sales from $150k - $449k

10 Homes are in the Contingent Status from $$84k - $410k

• 1 is a foreclosure at $125k
• 5 are short sales from $84k - $259k

4 Homes are Pending from $74k - $158k

• 3 are foreclosures from $74k –$158k
• 2 are short sales from at $109k - $174k

25 Homes Sold in the last 6 months from $110k - $401k

• 11 were foreclosures from $110k - $392k
• 2 were short sales from $150k - $175k

These statistics support my belief that most of the foreclosures and short sales have been absorbed and very few are currently active on the market. Since so many of the SOLD properties were foreclosures or short sales, the comps were pulled down for all home owners. This is very unfortunate for those that have to sell, but a huge advantage for those who want to buy. The sellers, for the most part, have finally understood the reality of the market and have been more realistic in their pricing. I turn down listings almost every day throughout the desert if sellers are not realistic with their pricing. I do not think it is fair to them to anticipate a sell that will probably never happen at that price and inconvenience them with prospective buyers traipsing through their homes. I tell them, if they do not have to sell right now, they should just enjoy their home for now and wait for the market to improve. On the other hand, many smart home owners are selling now at a realistic price and then buying another home at even a better price/value. Many sellers are taking advantage of this market and “upgrading” to a better property and are still coming out ahead.

For detail information on any of the properties in the Cathedral City Cove or anywhere else in the desert or to set up a private showing, please call me at 760-567-9296 or visit my website at www.JerryShea.com.

Click Here to Search the MLS for Homes in the Cathedral City Cove

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Photographs of The Cathedral City Cove:

How can you tell it’s Fall in the Desert?

When the license plates start changing colors.

Palm Springs, Palm Desert and the rest of the surrounding 9 Desert cities has a population of approximately 402,000 full time residents. In addition, about 100,000 seasonal visitors call the Desert home during the Winter months. These”snowbirds” start arriving every year in the October time frame. Every day we see more out of state and Canadian license plates throughout the Desert. A large portion of these sun chasers come from the Pacific Northwest states of Washington and Oregon. The number of Texas, Colorado, Minnesota, Wisconsin and Illinois plates have started arriving earlier this year, as well.

The number of Canadians that are buying Winter homes is growing every year. In fact, I have 2 fantastic homes in escrow right now that were purchased by Canadians in the last few weeks. I have seen a significant increase in the number of Canadians coming to the Desert early this year to get a jump on their fellow citizens and snapping up home bargains before other buyers.  Last week I sold a 3 bedroom condo in Palm Desert (listed for $130,000) to one of the nicest couples I have ever met. They never even saw the condo until they arrived in town this week, after we had already opened escrow. The day they sent me an email, briefly outlining what their criteria was, I scoured the MLS and found an unbelievable opportunity. The condo had just been lowered by $40,000 and the sellers were very motivated. We wrote an offer at 9 P.M. the same night and because we wrote such a clean offer, it was accepted the next day. Before they wrote the offer, I sent them a video that I shot that afternoon of the property and the development. The video had audio sound so they could hear the street traffic from the property. They arrived on Monday for the home inspection and said their expectations were far exceeded.  If they waited one more day this property would have been sold. I am delighted for them that they found such a wonderful property in one of the best neighborhoods in the Desert … and at such a FANTASTIC price.

Another Canadian couple opened escrow on one of my listings 2 weeks ago. Again, we had just lowered the price by $50,000 (list price $349,000) in order to sell it before the Season started. This beautiful 3 bedroom 3.5 bath home with a private pool and spa sits on a magnificent country club with incredible golf course views and Western views of our majestic San Jacinto Mountains. This winter, after a round of morning golf out their back door, they will be floating in their pool in 70 and 80 degree weather while looking straight up to the snow covered mountains. Life is good. Had they waited, they surely would have missed this bargain.

The Canadian Dollar (the Loonie) had been rising and is now back to about 94 cents to the American Dollar (http://bankofcanada.ca). In 2007, a record number of Canadians bought homes in the Desert because the Loonie was at an all time high of 1.103 to the American Dollar. Back on May 7, 2009, I wrote an article illustrating why NOW is even a much better time to buy a property in the Desert vs. 2007 because home prices have dropped about 40-70% in many areas and the Canadian dollar is at a very favorable position to the American Dollar. Take a look at subsequent “Market News” articles on www.Jerry Shea.com or visit the Stats pages to get a factual illustration of what the markets look like in each of the 9 major Desert Cities. I have broken the numbers out by single family homes and condos and included the number of homes sold and the median prices for each city. I think many people are going to be surprised to see that most of the market decline stopped in about March of 2009, has stabilized and in many cases the median prices are beginning to increase. Stay tuned for regular updates on the markets.

For all of you folks with different color license plates, please let me know how I can help you find a great buy and get you in your new home before all of the other snowbirds arrive. And for all of you folks with California license plates, I will be happy to assist you in finding a Desert home so you can escape the “May Gray” and “June Gloom” of the California Coastal cities.

Feel free to contact me at jerry[at]jerryshea.com (replace [at] with @) or call 760-567-9296 and don’t forget to visit my website for a wealth of real estate and Desert information, www.JerryShea.com. License plate photo courtesy of kelloggphotography, Flickr.

Palm Desert Country Club Pool Home on Golf Course – No HOA’s - $220,000

I just listed a great Cosmetic Fixer home on The Palm Desert Country Club that is generating a lot of buzz so I thought it would be worth featuring it here.

The property is located at 76819 Oklahoma Ave, Palm Desert, Ca 92211

 

 

First time home buyers should jump on this opportunity and take advantage of the First Time Home Buyer Federal Tax credit of $8,000 before it expires on November 30, 2009. Since escrow must close before December 1, eligible buyers must select the right property and open escrow very soon. There are only 63 days from today to complete the entire process.

Since interest rates are at an historical low, this property would be a good investment property or a great alternative to paying rent

Buyers need to be aware that the golf course at the Palm Desert Country Club is now in bankruptcy and recently closed. This property backs to the golf course so buyers need to be comfortable with its unknown future. The list price takes this into account.

Here are some features:

• Solar heated Pool and Spa
• 3 Bedroom / 2 Baths
• Fantastic Mountain Views
• No HOA’s
• On the golf course
• Southern exposure
• Cathedral Ceilings
• Golf Course and Mountain Views
• Quiet neighborhood
• Double Garage
• Wet Bar
• Fireplace
• Cosmetic Fixer – Just needs paint and carpets
• Not a short Sale or Foreclosure, but priced like one to sell quickly
• Covered patio
• Perfect for First Time Home Buyer Tax Credit

 

The real estate market in the Palm Desert Country Club has been VERY active in the last 6 months. Prices have dropped nearly 50% in the last 2 years and appear to have leveled off and have even been increasing.

Many buyers have taken advantage of the First Time Home Buyer Tax credit, several snowbirds have bought winter homes here and many investors have snapped up these well priced homes. 60% of the homes sold in the last 6 months have been foreclosures and currently there are only 3 foreclosures on the market, once again, evidence that there are far fewer foreclosures on the market than in the last few years.

The following is a recap of the market statistics for the last 6 months in the Palm Desert Country Club (as of 9-27-09):

25 Homes Actively listed from $100k - $399k

   3 are foreclosures from $100k - $157k

   4 are short sales from $105k - $295K

10 Contingent Status from $125k - $249k

   1 is a foreclosure at $142k

   8 are short sales from $125k - $249k

7 Pending from $99k - $351k

   2 are foreclosures from $99k - $110k

   1 is a short sale at $149k

37 Homes Sold in the last 6 months from $72k - $293k

   22 were foreclosures from $72k - $293k

    2 were short sales from $116k - $165k

 

The Palm Desert County Club has been one of the most active markets in the desert over the last 6 months. There is less than a 3 month inventory of available homes on the market. Anything less than a 6 month inventory is considered a Seller’s market.

For detail information on this property visit our featured listing page or visit www.JerryShea.com for all of your real estate needs. Feel free to contact me at 760-567-9296.

How is the real estate market in Rancho Mirage, Ca 92270?

Since I am asked this question at least 5 times per day, I would like to share a quick analysis with you and give you some key statistics about the current market. Many buyers have come back into the market and are looking to take advantage of the lower prices and low interest rates. Another key reason is the decline in prices has stopped and has been very consistent for the last four months now, and that has been during the hot Summer season in the Desert. I can’t remember when I have had a busier Summer.

Rancho Mirage Single Family Home sales:

# of Homes sold YTD 2009 vs. YTD 2008: -25%

# of Homes sold Aug 2009 vs. Aug 2008: + 8%

Median Price YTD Aug 2009 vs. YTD 2008: –20%

Average Price YTD AUG 2009 vs. Aug 2008: –13%

Foreclosures as % of YTD Aug 2009 sales: 23%

Short Sales as % of YTD Aug 2009 Sales: 8%

The median price for Single Family Homes has been holding steady at about the $600k-$650k range for most of 2009, with the exception of 2 months.

Rancho Mirage Condo sales:

# of Condos sold YTD 2009 vs. YTD 2008: –27%

# of Condos sold Aug 2009 vs. Aug 2008: +33%

Median Price YTD Aug 2009 vs. YTD 2008: –26%

Average Price YTD Aug 2009 vs. Aug 2008: –20%

Foreclosures as % of YTD Aug 2009 Sales: 19%

Short Sales as % of YTD 2009 Sales: 1%

The median price for Condos has been in the $280k-$360k range for most of 2009.

The graphs below illustrate the patterns of the numbers I have summarized above.

For further information and lots more up-to-date statistics on all of the major Desert Cities, please visit www.JerryShea.com.

As so many of you know, I love living and working in the Desert and have a passion for working with buyers and sellers to meet and exceed their real estate needs. Please do not hesitate to call me at 760-567-9296 or email jerry (at) jerryshea (dot) com.

 

Palm Springs Area Home Prices and the Number of Homes Sold are Going Up, Up, Up

The median prices of single family homes sold in the Coachella Valley (Palm Springs and surrounding cities)  have increased for 4 months in a row signaling we are either close to the bottom of the market or bouncing along the bottom. According to the Desert Sun article of August 12, 2009 which quoted Bob Thomas of Real Data Strategies, “prices have surged 33% during the first six months of this year, with 4,615 valleywide sales-2,598 happening in the second quarter.”

My team and I have done an extensive analysis of the Desert Area Multiple Listing Service (MLS) and have extracted the median price, average price and number of homes sold for each of the major cities which we cover in the Coachella Valley (Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, Indio, Coachella, Bermuda Dunes and Desert Hot Springs). The median home price in August 2009 for these cities was $258,000. However, if you also include the desert cities of Thousand Palms, Thermal, Mecca and Salton City the median home price is more like $191,000.

The graphs below give a good pictorial view of what is happening on an aggregate level for these cities. They show a trend line from January of 2008 through July of 2009 and then compare the year over year trend to show the effect of the seasonality of home buying in the desert. We have also broken the data out separately for single family homes and condos. This has been one of the busiest Summer seasons in years. I am glad to report that I have not had time to take any vacation because there are so many buyers and also because many sellers who have been waiting for a turnaround are now putting their properties on the market.

Over the next several days I will be posting articles and graphs for each of the desert cities my team covers. There will be several surprising findings. Although the overall desert median home prices are down 38% in one year ($258,000 in July 2009 vs. $353,000 in July 2008) and the number of homes sold are up 31% (5,032  YTD July 2009 vs. 3,836 YTD July 2008), the numbers vary widely between single family homes and condos, lower end home prices and higher end home prices in each city. Even within each city, the numbers vary significantly between zip codes. Without question, the most homes have been sold in the lower priced markets which were hit hardest by plummeting median prices, foreclosures, short sales and the influx of a huge increase in the number of buyers. Many of those buyers were first time home buyers taking advantage of the government credit of $8,000 for first time home buyers. This program expires November 30, 2009. Watch for further articles outlining this program and the need to take advantage of it right away because time is quickly running out for this great incentive.

As I have mentioned in previous articles, we are in the perfect storm:

- Median home prices are at levels not seen since at least 2003, in many cases since the 1990’s

- Interest rates are still at historical lows

- Inventory is declining rapidly

- The number of foreclosures are dwindling

- The national and local news is finally reporting that the turnaround started about 3-4 months ago (a fact that my smart buyers took advantage of early)

- Government incentives for first time home buyers expire Nov. 30, 2009

- Attractive FHA programs

- Banks are getting a little better with loan approvals (I have a great mortgage source which many of you have used)

- Consumer confidence is improving dramatically

 

Of course some real concerns still exist:

- Unemployment is increasing (which is true even 6-9 months into an economic recovery)

- Credit is still tight

- More foreclosures will be coming, but not in a Tsunami that many people predicted or are still waiting for. The banks are slowly, VERY slowly releasing foreclosures which are being snapped up with multiple offers on the first day they are listed. The banks do not want to flood the market and suppress prices like they did earlier in the year. I also think they are aware that prices are increasing and the longer they wait, the more money they will get. Keep in mind, the banks are not emotional sellers. They are running a business and the individuals making the decisions could care less about the specific property or buyer.

With that as a brief overview, let’s take a look at the graphs and see what has been happening in the Palm Springs and the surrounding Desert cities since 2008.

 

Coachella Valley Median Sales Price vs. Number of Homes Sold:

 

 

 Coachella Valley Median Sales Price: 

 

Coachella Valley Number of Homes Sold: 

 

In summary, you can see that the number of homes sold is up over 2008 by 29% for these selected cities and the median home prices are down from 2008 by 38% (even more since 2007) but the median prices are increasing.

For those people seriously considering buying properties in the desert for their primary or secondary home, now is NOT the time to procrastinate. The Summer, which is typically a slower buying time has been busy and the snowbirds will be coming back soon. Many snowbirds left last season and said they were going to wait until the new season because of the uncertainty. I am working with many of them right now who wished they had bought a few months ago.

I hope you all had a great Summer and wish you a fun and safe Labor Day weekend.

If you have any questions regarding real estate in the Coachella Valley, please contact me or connect with me on Facebook or Linkedin. I welcome the opportunity to work with buyers as well as sellers who have been waiting for the market to improve before making a move.

Smart Canadians are getting fantastic home deals in the Palm Springs and Desert Cities Area

For the past several years, Canadians have been flocking to the Palm Springs area to buy second homes or winter getaways.

2007 was the peak buying year for Canadian buyers because the exchange rate was the most favorable for Canadians in almost 50 years.

On July 11, 2007 the Canadian dollar peaked at $1.1030 for $1.00 US. Stated another way, $1 US dollar was only worth $.9066 Canadian dollars. A home selling for $500,000 US could be purchased for $453,309 Canadian. Not a bad deal. A very handy website to check on exchange rates is http://bankofcanada.ca.

In addition to the exchange rate working in favor of the Canadians, several other key factors also worked in their favor:

• Westjet added several convenient and affordable airfares from several Canadian cities to Palm Springs International Airport.
• The Alberta area was enjoying huge oil profits.
• Canadian home and land values were appreciating rapidly throughout the Canadian provinces.
• Palm Springs, which boasts over 300 sunny days per year,  is a much desired Winter home for many Canadians escaping the cold, snowy winters.

As a result, savvy Canadian buyers snapped up properties all over the desert.

There has been a lot of confusion lately regarding whether or not Canadians can still get mortgages for properties in the United States. The answer is YES, they can. Although many Canadians pay cash for their desert homes, it is always good to know your options.

According to Ryan Gray at Cal Metro Mortgage, loans are available for:

• Second homes and Vacation homes ONLY
• Maximum loan amount is $500,000 US
• Minimum 30% down payment
• 6.500% interest rate (10 yr  10/15 year repay)
• Full doc ONLY (2 yrs tax returns and 2 months bank statements required)
• No prepayment penalty

Although the exchange rate today is about $.8666 Canadian to $1 US, the prices of homes in the desert area since 2007 have dropped considerably and in most cases make today a better time to buy properties in the Desert than in 2007. Let’s go back to our earlier example of a $500,000 home in the desert which could have been purchased in 2007 for $453,309 Canadian. That same home could easily have been reduced in price to $400,000 or less since 2007. In that case, the $400,000 price tag would cost a Canadian buyer $461,573 which on the surface is pretty close to the same price he/she would have paid 2 years ago. It is very likely the final negotiated price of the home could be well below the 2007 price. The main point I want to make is that there are many factors that go into how much a person pays for a home. I think we are in a perfect storm right now. The inventory levels of homes in all price ranges is still plentiful, but decreasing at a rapid pace. Interest rates in the Unites States are still at or near historical lows which is bringing buyers back into the market and creating more competition. Many LEADING indicators are pointing to a recovering economy. In fact many top economists are suggesting we are either already out of the recession or exiting it quicker than forecast just a few months ago. Here is a quick video from ABC News, Good Morning America on May 12, 2009 with Liz Ann Sonders, Chief Economist for Charles Schwab and Co., where she says the recession is over.

I hope this blog article has shed some perspective on the buying opportunities in the desert and the home loans available for Canadian buyers. For those Canadian buyers who are waiting for the exchange rate to improve, keep in mind home prices seem to be stabilizing or bouncing along the bottom and many buyers are coming back into the market. Sales are way up form last year. Future articles will focus on the actual statistics in this ever improving real estate market.

Please contact me with any questions or if you would like me to put you in touch with an outstanding lending company for any of your home loan questions or needs.

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