Year-Over-Year Price Increases and Lowest Inventory in History
The median price of Valley detached homes in March was $549,000, which is 27.3% above last year. The attached home median price in March was $345,000, up 15.4% over the last twelve months.
Prices are expected to continue moving higher by following the seasonal pattern of reaching highs in May before pulling back. Seven cities how have median price increases for detached homes over 20%, with two up more than 30%. It should also be noted that five cities have exceeded the historic price highs they made in the year 2006, with two more only fractional percentage points away.
The three-month average of total sales is now averaging 1,129 a month, which is 39% higher than last year. Due to seasonal forces, average could reach 1,200 units, or higher, over the next two months and sales staying in the high range.
Inventory continues to decline and as of this writing, there are 707 units for sale. That compares to 3,034 units a year ago. Continued high sales and lower inventory has again driven the “month of sales” ratio to new historic lows. It is now just 4/5 a month, or just a little over three weeks. A year ago, the ratio was 3.7 months. This lack of supply is causing bidding wars amongst the many home buyers and is the force driving home prices much higher.
If you are considering buying, the time is now. I see the current trend of appreciation continuing for the next few years.
If you are considering selling, now is a great time. Most homes sell within days. Don’t get left behind.
Put me to work for you! Please don’t hesitate to contact me for specifics.
Palm Valley Country Club, developed in 1983, is a private gated golf and tennis community. The 1,274 condominiums offer 14 different floor plans ranging in size from 936 to 2,489 square feet. The community offers single-level condos with fairway views of the two courses, Championship and Challenge. In addition, there are numerous buildings offering upper and lower level units surrounding the Challenge course.
If you love golf and tennis, then Palm Valley Country Club offers you a premier lifestyle club. Situated on lush tropical terrain centrally located in Palm Desert and just 10 miles from Palm Springs, Palm Valley Country Club redefines the private golf club experience. Blending time-honored traditions of golf with modern, upscale conveniences, the club boasts 36 magnificent holes of golf designed by Ted Robinson, Jr., and an array of golf, social and recreational amenities and personalized services and exclusive privileges that have earned it recognition among the finest private clubs in the Coachella Valley.
The masterful golf courses are just part of the experience. Between rounds, you can work on your game at the practice facilities, shop the Pro Shop for equipment or clothing, and enjoy the club’s bar, lounge and restaurant.
Palm Valley Country Club’s tennis and pickleball courts offer a variety of opportunities for social or competitive play in leagues, round-robins, tournaments, and inter-club events. Their talented USPTA-certified teaching professionals are available for private and group lessons for children and adults, and offer a Junior Tennis Academy for children ages 6-17.
Palm Valley Country Club is celebrated with its 100,000 square foot clubhouse, golf and tennis pro shop, men and women locker rooms with steam, sauna and jacuzzi, two restaurants and lounge, olympic size lap pool, state-of-the-art fitness center and a day spa/salon.
Whether you’re a passionate golfer or tennis player looking to improve your game or you simply want a place where you and your family can relax and enjoy the weekend, Palm Valley County Club offers you the lifestyle of your choice. It is no wonder it has received the designation of the ‘fun club’.
Home prices range from $250,000 to over $600,000. Monthly HOA is $725. Golf membership is separate.
Palm Valley Country Club is located off Country Club Drive, between Washington and Cook streets.
Home Prices, Election, Covid-19, Oh My!
It’s been quite a November and we’re only 13 days into it.
Many of us thought after November 3rd the Democrats and Republicans would stop their constant fighting and we’d know who the Presidential candidate would be sworn into office in January. To add to our worries, Covid-19 high positivity rates smacked us again.
But there is a bright light in our housing market.
People from around the country are buying homes where they’ve been vacationing. They’re buying homes in leisure destinations as permanent residences and as secondary homes. Our Palm Springs area is one of those destination hotspots. And we locals know why; weather, beautiful scenery, lifestyle, and fabulous homes at fantastic prices.
2020 has proven to be a very big year in the real estate market in the Coachella Valley. Buyers who had been waiting for “the right time” to purchase a home found this year to be that right time.
Our residential inventory is still very low in all prices points, with the exception of the uber high-end properties. If a property is priced correctly, based on its location, sun exposure, floor plan and other factors in its community, it will sell – and sell quickly. But even in this hot market, sellers must remember that buyers set market prices, not sellers. It is a sellers’ peril if they disregard this reality. If they do, they won’t sell their homes.
As we approach the holidays, realtors would generally see a slight slowdown before our January to April active season. However, since Covid-19 people keep streaming into the desert searching for their ‘desert dream home’.
There’s been a huge surge of sales in the detached home market. In the past 1-1/2 months, home sales experienced a 39.3% increase year-over-year. The average home sale is a tick over $600,000. In the $700,000 to $800,000 price bracket, sales increased 96%. In the million-dollar and over price bracket, sales went from an average of 45 units to over 110 units a month, an increase of 144%.
Entry level homes priced between $250,000 to $350,000 are very hard to find. If a single-family home comes on to the market in this price range, it won’t list for long. In this price range it’s easier to find a condo.
With the start of our selling season, we anticipate seeing more homes hit the market, which may ease some of the upward pressure on home sales. However, as with everything else this year, nothing is running its usual course.
Stay tuned. Stay connected.
It’s the first week of September and our hot desert weather will begin to slowly cool down. But that’s not the case with our real estate. It appears the coronavirus has created ideal conditions for dramatic spikes in Coachella Valley home sales. With so many working from home, people have realized they can live anywhere. In comparison to pricey, prime areas of California, our desert communities look extremely attractive.
Another component adding to home sales are low interest rates. But recently Freddie Mac and Fannie May threw a curve ball and unexpectedly announced a new finance fee of 0.5% assessed for cash-out and no-cash-out refinances. Many in the mortgage industry voiced opposition to this new policy so Freddie Mac/Fannie May announced the fee will be postponed from Sept 1 to Dec 1 and that loans under $125,000 would be exempt. So, it you’re thinking of refinancing, do it very soon.
Did you know that almost half – 45% – of people who bought a home in the past year made an offer on a property they hadn’t seen in person? That’s up from just 28% during the same period last year. Sight-unseen offers will likely to continue to climb in the coming months. The pandemic has changed the way many people view homes. With that in mind, make sure photos of your home and property are photographed by a professional before you list it in the MLS. You are selling in a competitive market with low inventory.
Speaking of listing, we’re seeing a significant number of home appraisals come in below the selling price. When that happens, it requires buyers and sellers to come together to renegotiate. This is going to continue to happen when we’re in an environment where appreciation is rapidly happening. As inventory shrinks, buyers are increasing their offers.
So how long can the market ride this wave? Nobody knows. Many people are buying now because they’re afraid they’ll miss out and will have to pay more in the near future.
In the meantime, Sellers are quickly receiving buyer offers.
So, if you’re thinking about selling, let’s talk about your home’s current value. And if you’re thinking of buying, let’s talk about the homes that fit within your price.
Even with Covid-19 travel and home showing restrictions, homes in the Coachella Valley are selling fast.
As we face the challenges of the COVID-19 pandemic, my first priority is the health of my clients and the communities we live and work. I’m committed to supporting my clients through this challenging time.
People are still out looking at homes, putting their homes on the market, writing contracts, and closing on life’s biggest transaction. In order to continue to provide the same high level of support, we realtors have had to adapt, adjust, and work together like never before.
Real Estate in Times of Uncertainty
Much of the news these past few weeks has been regarding the unfortunate events and circumstances caused by COVID-19. Day-to-day and hour-to-hour news is changing how we best address the COVID-19 matter.
As your trusted realtor, I’ll stick to real estate and defer to experts like the CDC for how to best address your health and safety. I don’t want to minimize the effect this current situation has on other aspects of life, but I wanted to offer some insights and reassurance regarding my expertise and experience – real estate.
You might be worried about your home value at this time of economic upheaval. That’s understandable and completely valid. The good news is that for most homeowners, the best course of action, as well as the easiest, is to do absolutely nothing. Just sit tight, be thankful that you have a nice place to gather with your loved ones, work from home, or even self-quarantine if needed. At times like this, it becomes abundantly clear that your home is so much more than just an investment.
Fortunately, real estate has historically proven to be a relatively stable and sound investment in times of crisis. For example, Dr. Marci Rossell, a leading economist who specializes in real estate, noted that the housing market remained stable in the aftermath of 9/11.
In the days and weeks following 9/11, there was a real sense of panic and uncertainty. Airlines completely shut down, conferences and events were canceled, oil and stock prices became hyper-volatile, and news stories predicted economic activity could grind to a halt for quarters if not years. Remember?
Fortunately, the shock that 9/11 delivered to the world economy was short-lived. It was a classic V-shaped economic deceleration characterized by a rapid decline followed by a rapid recovery. Unlike the stock and bond markets, real estate markets move slowly. At a time of economic uncertainty and volatility, based on past events it’s a pretty safe bet that real estate will remain a bastion of stability.
For those who are active in the real estate market currently and wondering how the pandemic will affect buying and selling:
Buying a Home
Selling a Home
The Impact of Federal Reserve Actions on Mortgages
In these days and weeks ahead as news continue to come out about COVID-19, I want you to know that as your trusted real estate advisor I am on the front lines of the market. There are a lot of unknowns, but I will closely monitor the situation and am always available for any of your real estate needs, questions, or concerns.
In closing, please wash your hands and stay your distance from others. Give me a call. I welcome the opportunity to be of assistance!