Blog
Category: <span>Desert Home Palm Springs</span>
At Darlene Harwick, our team relies on Darlene’s experience and knowledge to provide the best customer service to all of our real estate clients. In our blog, we will share our tips and advice on achieving the best price for your home, as well as suggestions about fun things to do in the desert. Whether you are looking for help with finding the right vacation home, or choosing your retirement home, our team is here to offer you the service you need. Call our office in Palm Springs to learn about the real estate services that we offer, and see how we can help you get the home of your dreams. Call and speak with us today!
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.
The Palm Springs area conjures up images of sunny skies, golf, tennis, lounging by the pool, and dining at fine and/or fun restaurants. And, for many of us, with our dog by our side.
While dining with your canine best friend is a common site here in the desert, it’s important to know before you arrive at your chosen eatery that it is indeed receptive to your furry family member. A call or website search will be worth your research. Here are a few of my favorite pooch-friendly restaurants I enjoy with my Lollie!
JC Café
www.jcsonelpaseo.com
Family owned since 1987, and conveniently located on El Paseo Dr in Palm Desert, JC not only offers the freshest food and refreshing cocktails, but hands down has one of the best patio and al fresco dining experience in the desert. Check out the Saturday and Sunday $5 all-day cocktails. The staff will treat your loved furry one with a lot of attention, water bowl, and treats.
Melange at the Chateau at Lake La Qiunta
www.thechateaulakelaquinta.com
The patio is ideal to lunch, dine, and socialize and with a glass of champagne or crafted cocktail. It’s located right on the lake offering incredible views of the lake and waterfront homes, and is ideal to lounge with your pooch.
The Corridor
www.palmspringscorridor.com
This hip and happening courtyard with shade trees, lawn, and outdoor sculptures is surrounded by small shops, cafes, restaurants, and events that can be shared with your dog pal.
Jakes Palm Springs
www.jakespalmsprings.com
Named for the owner’s cherished Westie, this popular eatery pampers pooches with water bowls, treats, and plenty of praise from staff and other diners.
The Café at Venus de Fido
www.venusdefido.com
A popular neighborhood lunch destination, the Café offers healthy and creative plant-based meals using only fresh ingredients. This unique destination offers the upmost pampering for you and your doggie, with Spa treatments for both, doggie daycare, indoor dog park, themed doggie playdates, and Fido birthday parties, Bow-wow-wow!
Farm
www.farmpalmsprings.com
The Farm is like a trip back to the South of France. The experience at Farm is like being transported to the South of France. Expect an extraordinary sensory experience; from the garden-like patio seating, beautiful bouquet of floral landscaping, to our incredible authentic menu comprised of the freshest ingredients, you will be wowed at every turn.
Many people not only enjoy winter, but wait eagerly for the start of the season. We, however, live in the desert, because we thoroughly enjoy the pleasant year-round temperatures and mild climate. If you’re like us, then you will enjoy reading today’s post about some of the things you can escape from when you spend your winters in the desert. Contact Darlene Harwick in Palm Springs today and let us help you find your dream desert home.
Icy Sidewalks
Icy sidewalks are one of the primary causes for personal injury during winter. Sure, you can spend the money to have radiant heat placed into your own sidewalk, but how does that help you when you want to walk beyond your property? If you are tired of wondering whether your next step might just shoot out from under you, or you can’t fathom sprinkling another round of salt across your driveway, then you should consider moving to Palm Springs and adopting the desert lifestyle.
Black Ice
Speaking of ice, there are few things in life that are more scary than suddenly realizing that you are driving across black ice. Named for its ability to blend in with the color of the road, black ice is dangerous primarily because you can’t see it until it’s too late. The best thing to do is to take your foot off the accelerator and hold the wheel steady until you are at a spot where you can safely brake.
Flu
Whether or not you catch the flu during winter, you probably struggle with a stuffed up or runny nose at least several times over the course of this sickness-inducing season. The fluctuations in temperature between your warm home and the cold outdoors, coupled with changing humidity and a variety of other factors, make winter one of the hardest times to remain healthy.
Scraping and Defrosting Your Car
Even if you keep your garage organized enough that you are able to park indoors, you don’t have the luxury of that protection when you drive to work, or run errands. It is easy to forget the simple luxury that we enjoy during the summer of simply hopping in our cars and taking off. During the winter, not only will you have to scrape ice and snow off of your vehicle, but you will also have to allow time for the heater to warm up your car and defrost your windows.
Heating Bills
During winter, there are only so many clothes that you can put on before it becomes uncomfortable. Likewise, short of heating your home to match the temperature of a sub-tropical climate, there aren’t a lot of other options for remaining comfortable. Most people choose to heat their home to a reasonable temperature and then simply wear an extra layer or two. Wouldn’t it be nice to walk around in your shorts even in the middle of winter? You will have that, and many other comfortable luxuries when you move to the desert.
Darlene Harwick wants to help you find the perfect desert home for you and your family. Whether you are interested in a vacation home to escape winter, or you are looking for a permanent residence, we can help.
Contrary to what television shows and movies would have you believe, the desert is not simply a dry and barren wasteland. In fact, there are so many fun and engaging activities that we couldn’t possibly list them all in one blog! We chose our top five favorite things to do and see when we are in the desert, and we hope you’ll try them out! If you enjoy your time so much that you are wondering how you can make the desert lifestyle your own, then Call Darlene Harwick today and find your desert home retreat.
Palm Springs Art Museum
The Palm Springs Art Museum is a must-see in our book. Founded in 1938, it specialized in Native American artifacts, as well as the natural sciences and environment of the area. Today, it still focuses on the unique microcosm of the Coachella Valley where it is located. With rotating exhibits, educational programs, and performing arts productions, the museum has something for everyone.
The Modern Tour
Palm Springs is well-known as a home to some of the great influencers of modern architecture, as well as some of their most famous creations. You will get to visit some of the most legendary Palm Springs homes to view examples of mid-century modern architecture and design. One of the highlights of the tour is, of course, the Albert Frey House II with a boulder that juts into the home’s interior. This is one tour that you will not want to miss!
The Living Desert
As its name indicates, the Living Desert is part zoo and part botanical garden, set in the desert. You will be able to experience both African desert life and North American desert life as you walk through the park. There are educational presentations throughout the day, opportunities to feed different animals such as giraffes and lorikeets, and over 1,400 species of desert plant life. The Living Desert is a great place for adults and children alike to learn and have fun.
Joshua Tree National Park
Whether you are an avid hiker or someone who enjoys casual strolls, you need to make sure to set aside a day during your visit to experience this absolutely stunning national park! There are a number of day hike options for you to choose from. One of the shortest trail options, Arch Rock, is just three-tenths of a mile. On the other end of the scale in terms of distance, is the Cottonwood Springs nature trail at two and a half miles. You will enjoy open views of a diverse landscape as you walk this trail. No matter which day hike you choose to take, you are sure to enjoy your time in Joshua Tree National Park.
Tahquitz Canyon
Home to the Agua Caliente Band of Cahuilla Indians, Tahquitz Canyon is a beautiful and culturally sensitive area in their reservation. A small admission fee will allow you to enter the reservation and walk the two-mile loop to the stunning 50-foot waterfall in this canyon in the middle of the desert! The fee goes toward maintaining a pristine walking trail, as well as protecting the falls from the graffiti that has marred so many other waterfalls in the L.A. area.
We hope that our list has inspired you to visit the desert and see all of the fun things there are to do. If you fall in love with this area as much as we have, then call Darlene Harwick in Palm Springs to learn how you can find your desert home.
The Costs: Before you begin your search for your dream get-away home, talk to your tax professional about how a second home will impact your tax situation. The IRS has different rules for people with second homes and vacation homes (defined as such if you stay there at least two weeks a year), so before you do anything, find out how buying a second home will affect your taxes.
Consider the expenses of buying a second property and the ongoing financial commitments involved in maintaining it, such as property taxes, insurance, utilities, gardeners, pool service, and homeowner association monthly fees (if in a gated community). Condominiums make great second homes because you don’t have to worry about the issues owners of detached homes do, like the exterior and outdoor areas. When looking at condos, research the homeowners’ associations (HOAs). Ask about monthly fees, special assessments and community rules.
If you’re looking for an investment property, a low price is not the only consideration. A turnkey operation is ideal. Look for properties that don’t need extensive repairs or much maintenance and steadily generates a steady positive cash flow. When buying a rental property, budget for added costs, such as marketing the home to potential renters, hiring a property manager and making repairs.
As with any home purchase, you’ll need to factor in closing costs and a down payment, which in the case of a second home or investment property will be sizable. Typically, you’ll need to put down at least 25 percent of the purchase price.
Down the road, if you decide the property isn’t working out for you, how hard will it be to sell it or rent it out? How much will it cost you? Planning ahead and coming up with a plan B will help you deal with potential surprises.
The City: Location, location, location. One of the keys in being successful in investing in a second home is your awareness of the neighborhood you’ve decided to target. Take the extra time to study the demographics of a specific neighborhood before making an investment. Ask your realtor if the community is primarily comprised of baby boomers, families with children, or filled with rental properties. Ask how your targeted area compares with others in that city.
The Knowledge of the Coachella Valley: Many times when people talk about Palm Springs, they’re actually referring to other cities in the Coachella Valley, like Palm Desert, Rancho Mirage, Indian Wells, and La Quinta.
- INDIAN LAND: Land that is laid out by sections in a checkerboard fashion throughout Palm Springs and also parts of Cathedral City and Rancho Mirage. Approximately every other section of this checkerboard is owned by the Agua Caliente Indians. Though fee simple (land you own) is the standard type of ownership in California, there are some benefits to buying a home, condo or lot located on leased land. Be sure to find out if a property you are considering is on leased land and what the terms of that particular lease are.
- HILLSIDE DEVELOPMENT: Hillside development is very limited in the Coachella Valley. Steps are being taken in many of the cities throughout the valley to limit and/or rezone hillside property to restrict residential development. Therefore, when considering the purchase of vacant hillside property, a visit to the Planning Department is suggested. Take along a parcel map of the subject property and a city planner will gladly explain to you any restrictions that may apply. This trend has caused a strong appreciation of developed hillside property over the past years and should continue into the future.
- EARTHQUAKE FAULTS: As throughout the state of California, earthquake faults, including the San Andreas fault, run through the Coachella Valley. Although homes are built to withstand most earthquakes, it is important to know how close a property may be to an active fault. Maps showing earthquake fault lines in the Coachella Valley are made available through the County of Riverside.
- HOMEOWNER’S ASSOCIATIONS: The Coachella Valley has many private country clubs and private developments with homeowner’s associations. Important information regarding each individual association should be made available to you before you purchase any property in which you are required to be a member of a homeowner’s association. Among other things, you should verify monthly and/or annual fees or dues you will be required to pay and whether any assessments are anticipated in the near future. Important documents include CC&Rs (Covenants, Conditions, and Restrictions), By-Laws, and Financial Statements.
- GAMBLING: The Agua Caliente Band of Cahuilla Indians have opened their own casino at the Spa Hotel in downtown Palm Springs. The overall opinion in Palm Springs is that gambling will be good for the city, and most merchants and residents are in favor of gambling. The Agua Caliente Tribe has eventual plans to expand their existing casino at Indian Canyon and Amado streets.
- WIND: Certain areas in the Coachella Valley experience a higher degree of wind than the secluded canyons and other wind sheltered areas. This is not to say that the wind is good or bad, but, if you have a strong opinion one way or the other, you should investigate how the wind affects each area of the valley.
- CONSIDER THE ELEMENTS: Because of our unique desert climate, certain types of construction fare better and are more economical to own than others. Be sure to carefully consider the energy efficiency of any improved property before buying or leasing it. Look for well insulated walls, pitched roofs, and strategically placed landscaping.
- WHAT ARE THE TAXES? State property taxes are limited to an annual assessment of approximately 1.25% of the purchase price. Example: $100,000 home will equal $1,250 per year. In addition, many cities have small local taxes such as the utility tax in Palm Springs. Some areas have assessments for recent street and sewer improvements. Be sure to check it out.
- WHAT ABOUT THE HEAT? It is true that during the summer months the temperature will reach up to and over 100 degrees almost daily. However, most of the time it is a dry heat, and is a very small price to pay for the nine months of ideal weather we do enjoy. Most areas of the country offer only three to six months of quality weather as opposed to our nine months. Imagine laying out by the pool in the middle of January!
Average Daily Minimum-Maximum Temperatures in January, February, March, April, May, June:
41 – 69/45 – 74/48 – 79/ 54 – 87/60 – 94/66 – 103
July, August, September, October, November, December:
74–108, 75–107, 67–102, 59–92, 48–79, 42–70
HOA or no HOA. That is the question.
Homebuyers considering to purchase a home in a gated Home Owner Association community (HOA) or purchase in a non-gated community here in our Coachella Valley is an important consideration before buying. Rule of thumb is the higher the monthly HOA fee the higher the amenities in that community. Buyers who are not familiar with our desert are advised to research and walk through different communities to understand what amenities are offered and the costs associated with them.
The Coachella Valley (Palm Springs to Indio) is a world-renowned vacation community of luxury vacation homes and resort-like condos. Many of our region’s residents live here part-time and expect a resort-like lifestyle. They like the convenience of an HOA to manage maintenance, landscaping and security during the months they spend elsewhere.
HOA dues vary widely from community to community depending upon the amenities (golf course, tennis courts, clubhouse, pools/spas, fitness centers, etc) and services that are offered. HOA dues in condominium communities will generally be higher than those of most single-family home communities. Besides amenities, HOA dues can also include exterior building insurance, maintenance (outside walls. roofs, painting) and landscaping, making it ideal for seasonal homeowners because they can “lock and leave” and not worry about outside maintenance.
Most gated communities (single-family and condominium) fund street maintenance and security through their HOA budgets, board members and HOA managers. Many HOAs also pay for common area landscaping —which can include HOA-owned golf courses — along with pools and owners’ yards. Some HOAs use reserve funds for house painting or roof maintenance every few years; others pass those fees onto residents as special assessments. Some offer golf course or country club memberships as separate costs from HOA dues.
Lenders seriously take HOA fees into consideration approving mortgage loans. A helpful guide for buyers to keep in mind is that every $70 in monthly HOA fees lowers purchasing power by $10,000. So, if a buyer was prepared to spend $300,000 but wants to live in a neighborhood charging $240 in monthly HOA fees, that buyer should consider homes closer to $270,000.
Information is paramount in buyer decision-making. Budget, lifestyle, and location are important considerations before purchasing. Do your homework before making an offer. Ask yourself what amenities you want (if any) then visualize living in a gated or non-gated community and the costs associated with your selection.