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Tag: <span>escrow</span>
The current residential real estate market is mindboggling , but not in the same way it was last year or in 2008. This time it’s about supply and demand and mortgage interest rates.
Let’s say you want to buy a home at this time and you’ve seen that prices have dropped somewhat. Maybe you’ll be tempted to wait. After all, why buy a house today if you believe you’ll be able to pay less in a few months?
The problem with this logic is that you can’t predict when prices will hit bottom. Wait too long and you’ll end up trying to buy when prices are rising and competition is increasing. You just can’t time the market. If you wait for prices to dramatically fall but they never do, you may discover the hard way that the house that you loved, but passed on, is more expensive.
The wait for home prices to plunge could be thwarted by sellers’ unwillingness to give up what they’ve gained – which is inflated home prices. Through refinancing or well-timed purchases, 92% of homeowners with mortgages have rates below 5% and half have rates below 3.5%.
A lot of those homeowners will keep their low mortgage rates and vow to never leave. What’s the incentive to sell your home when you’re locked into a 2.6 or 2.7% mortgage rate, and purchase another home at 7% or higher?
When owners keep their homes off the market, they reduce the number that are available to buy. A limited supply could restrain a drop in prices as buyers compete for meager offerings.
Some sellers and buyers a could have a dilemma.
How is all this affecting our local market here in the desert? Here are the latest statistics.
PRICES:
The median price of a detached home in the Coachella Valley has declined over the last two months. It’s currently at $670,000, which is up 15% year over year. Most of this decline is seasonal but it also represents the general corrective turn that is occurring in home prices.
The median price for attached homes in September was at $465,000, which is down slightly from the previous month but up 24% year over year. Gains now range from 34.1% in Indian Wells to 12.2% in the Bermuda Dunes. In the attached home market, two cities continue to have gains over 40% – Desert Hot Springs and Indio.
SALES:
The three-month average of sales in September was 581 units a month, which is 32% below last year. In the three years before the pandemic, September sales averaged 784 units, so current sales are objectively running about 25% below normal.
Every city except Coachella had lower sales in September compared to a year ago. Sales in the city of Coachella are 42% higher. The largest percentage declines were in the cities of Rancho Mirage, La Quinta and Cathedral City, where sales are lower by 43%, 42% and 42% respectively.
INVENTORY & “MONTHS OF SALES” RATIOS:
On October 1st, Valley inventory stood at 1,807 units, which is 214 units higher than last month and 924 more than last year.
This monthly increase is opposite to almost every other California region, where inventory generally contracted last month. Some of this increase is seasonal and if the seasonal pattern continues, as we expect, inventory might possibly reach 2,500 units by February.
On October 1st, the Valley’s “months of sales” ratio was 2.2 months, which like inventory is higher than last month. The ratio remains considerably below 3.0 to 3.5 months, which is normal for late summer.
DIM:
At the end of September, the median number of “days in the market” throughout the Valley was 32 days, which is now eight days more than last year. It may rapidly increase back to 50 or 60 days, which is historically “normal” for the region. The city of Indian Wells has the lowest median selling time for detached homes at 24 days, followed by Rancho Mirage at 27 days. In the attached market, Desert Hot Springs has the shortest selling time at 23 days, followed by Cathedral City at 25 days.
PRICE DISCOUNTS/PREMIUMS:
At the end of September, 27.7% of sales occurred above list price compared to 50.2% a year ago. The ratio will probably be back to historic norms of around 10% near the end of the year.
Only four cities have selling premiums for detached homes, with the cities of Coachella and Desert Hot Springs having the highest premiums at .6% and .3% respectively. No city currently has a selling premium for attached homes.
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.
http://www.palmspringsvalleyhomes.com
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.
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.
When you begin the process of looking for a home, you will hear about the necessity of putting money into escrow. While you have probably heard this word before, you may not be able to easily define what it is or why you need it. In today’s post we will take a look at the definition, as well as some of the basic principles involved with the process of escrow. When you’re done reading, be sure to contact Darlene Harwick in Palm Springs to see how she can help you find your dream desert home.
What Is It?
Simply defined, escrow is a bond or other document that is kept in the custody of a third party that takes effect only when a specified condition has been met. In practice, this means that a neutral party, or “middleman”, holds money or assets being transferred between two parties until the legal obligations have been met by both sides. This practice is utilized in business transactions to ensure that neither side is cheated in the process. In the framework of homeownership, escrow refers to money that is held in an account which pays for property taxes and insurance each month as part of the mortgage payment agreement. You do not have to worry about setting up the escrow account as it will be taken care of by either a title agent, attorney, or other party who is paid to provide this service.
Involved Parties
We mentioned that the primary function of escrow is to ensure that money does not change hands until all aspects of a contract have been fulfilled. Let’s take a moment and clarify all of the parties that are involved in a real estate transaction. The three main parties are the buyer, the seller, and the lender. The lender is typically a banking institution. The escrow officer is usually an employee of a title company or mortgage company who will work with your real estate professional to ensure that all necessary information is included in the instructions in the escrow document.
Escrow Balance
Unlike your checking or savings accounts, your escrow account holds a very specific balance that will be processed during the closing on your new home. Lenders frequently request the balance to be equal to two months of the following items: estimated property taxes, mortgage insurance payments, and homeowners insurance payments. While this may seem like a lot of money to pay up-front, it will benefit you in the long-term if prices increase on any of these items. You will benefit from having a cushion in the account, rather than having to make up the difference if it is shorted.
Minimum Balance Requirements
A minimum balance requirement is an excellent safety measure to have in place, as it ensures that a negative balance is not accidentally incurred. When it comes to your escrow account, the minimum balance requirement is determined in a slightly different manner from the requirement for a traditional checking account. The minimum balance is not to dip below two months’ worth of payments. This time frame of two months is based on figuring out one-sixth of the total amount of items that are paid from this account. Just as a minimum balance in your checking account protects you from overdrafts, the minimum balance in your escrow account helps to guarantee that if your taxes or insurance payments increase, you will not be in a position where you are facing a large shortage.
Purchasing a home involves a lot of paperwork and industry-specific terms that can be overwhelming. When you work with Darlene Harwick, however, she will take care of each piece along the path of homeownership for you. Contact her team today and learn how they can make it easy for you to find the desert home you’ve always wanted to have in Palm Springs.
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.