Community News

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: