Category Archives: Foreclosures and Bank Owned

Palm Springs Real Estate Market Update

Novemberstats

 

Numbers/Results for November 2012
The inventory, at the beginning of December, for the cities we cover, is 2788 which is a 13% drop year over year. This includes 96 REO’s (bank owned ) and 107 Short Sales: representing 7% of the inventory for distressed properties compared to 13% year over year. (so the number of distressed properties has dropped significantly). This is bringing a raise in prices of about 5% year over year. The homes have sold on average of 95% TO 104% of the asking price. We are far from the times where we presented offers at 10 to 15% under the asking price!!!

 


Bookmark & Share

Palm Springs, Market Report for the Week of August 27, 2012

The median list price in PALM SPRINGS, CA 92262 this week is $319,900.

Inventory is tightening and days-on-market is falling. The Market Action Index shows demand heating up. These are relatively bullish signs for prices.

Supply and Demand

Home sales have been exceeding new inventory for several weeks. Since this is a Buyer’s market prices are not yet moving higher as excess inventory is consumed. However, as the supply and demand trends continue, the market moves into the Seller’s zone, and we are likely to see upward pressure on pricing.

Price

We continue to see prices in this zip code hovering around these current levels, even though they bumped up a bit this week. Look for a persistent up-shift in the Market Action Index before we see prices move significantly from here.

Click Here to download the full Palm Springs, CA, market report!

For more information regarding luxury homes in Palm Springs, CA, contact Claudine Messika.



Bookmark & Share

Palm Springs, CA Housing Market Report for the week of July 30th, 2012

The median list price in PALM SPRINGS, CA 92262 this week is $325,000.

Inventory is tightening and days-on-market is falling. The Market Action Index shows demand heating up. These are relatively bullish signs for prices.

Supply and Demand

Home sales have been exceeding new inventory for several weeks. However because of excess inventory, prices have not yet stopped falling. Should the sales trend continue, expect prices to level off soon and potentially to resume their climb from there. Watch prices as the market transitions from a Buyer’s market to a Seller’s market.

Prices

Again this week in this zip code we see a downward notch for prices. Pricing has been weak in recent weeks and versus their absolute-high level. At this point, we will be looking for a persistent upward shift in the Market Action Index as a leading
indicator for a trough in prices.

 

Looking for a home or condo in Palm Springs? Claudine is available to help with all Palm Springs Real Estate concerns. Call CLAUDINE TODAY @ (760) 799 5308!



Bookmark & Share
</a

NEW LISTING! 72390 Ridgecrest Ln Palm Desert, CA 92260- $161,000

Great South Palm Desert location high up on Hwy 74 on a quiet cul de sac. This is the largest model at Sommerset with 3 bedrooms, 2 bathrooms and an open floor plan. Handy for El Paseo shopping and restaurants. Perfect as a vacation home or for year-round living. Property is being sold subject to 24 CFR 206.125.

View Larger Map

For more information about this property and other Claudine Messika homes, click here to make an exclusive property consultation today,



Bookmark & Share

Sellers Making More Price Adjustments

It’s no secret that buyers are at an advantage right now when it comes to purchasing homes, and sellers are definitely starting to take note of this. Two recent surveys indicate that sellers are starting to gain more confidence in their properties; these surveys also show that sellers are also withdrawing from the market.

This results in very low home inventories, which limits the choices that buyers have when they’re looking for a new home, especially in prime buying season, which is in the spring. A national survey also confirmed that housing inventory had dropped 1.3 percent by the end of March. Listed inventory is also 21.8 percent lower than it was a year ago.

However, another study indicates that the number of people who affirmed that now is an ideal time to sell a home increased from 10 to 15 percent for the fourth month in a row. While this isn’t an overwhelming increase, realtors do believe this is a step in a positive direction.

As far as neighborhoods go, only about one in five adults agreed that now is a perfect time for someone in their community to sell a home, while 63 percent disagree with this sentiment. The prices that people are expected to pay for home is also directly linked to changing mindsets among home sellers.

Generally, Americans are expecting home prices to increase about 1.3 percent in the next year. This is due to the fact that people are generally optimistic about the positive turn the economy is taking, and are willing to pay for homes that are a little higher priced. Confidence in the home buying market rose two percent from March to April, so home purchases are expected to increase.

This presents good news for both sellers and buyers, and will increase the chances that individuals will get into new homes they are satisfied with, in terms of both home specifications and price.



Bookmark & Share
</a

IT'S ALL ABOUT THE INVENTORY IN PALM SPRINGS !!! TAKE A LOOK AT THIS CHART THEN AT THE NUMBERS BELOW

Here is the monthly update with our sales, median prices and inventory  for June 2012 covering the cities of: Palm Springs Proper; Rancho Mirage; Palm Desert; Indian Wells; La Quinta and the community of Sun City (Palm Desert

LESS Bank Owned inventory
and less inventory all together (just above 4 months worth). Properties are sold in average between 94% and 101% of the asking price.

If you are serious about Palm Springs and Real Estate in Palm Springs NOW is the TIME!

The average median price is UP and the numbers are showing the number of distressed properties shrinking (very specific to our second homes market and not necessarily true for the rest of California) . The numbers are more or less comparable to last month except for the inventory, which has significantly reduced. Still, our summer is bringing lots of “real buyers” into town despite the heat. Although there is less competition, there are still multiple offers on many of the properties.

Results for June 2012
Total homes sold : 584 month over month a 15% decrease but this is our summer!
Total homes in “pending” (under contract ready to close) : 513
Total homes in “back up offer”(mainly short sales waiting for bank’s approval) : 738 a 10% drop from last month
Median price for condos : $265,650 a slight increase year over year and month over month- because of our short inventory
Median price for single family : $ 393,750
Total Bank Owned (REO’s) sold in June 2012: 78 against 154 year over year because less REO inventory
Total Short Sales sold in June 2012: 87 some improvement on the banks side to close the shortsales
Total Bank Owned (REO’s) active in July 2012: 74 against 214 year over year. Less REO’s inventory
Total Short Sales active in July 2012:129, a 20% month over month decrease
Total Inventory for the cities we cover : 2227 another 20% decrease compared to May and 30% decrease year over year. The inventory for short sales + REOs is just about 9% of the total inventory.

 

Cities MedianPrice
condos sold
Price/sqft
condossold
Total
condos
MedianPrice
SFR
Price/sqft
SFR
Total
SFR
Total
sold
Sold   REOs Active   REOs
Palm   Springs

145,250

120.90

82

375,000

189.79

94

176

25

21

RanchoMirage

285,000

152.52

39

450,000

191.26

33

72

6

7

Palm   Desert

222,000

150.26

63

292,500

157.87

70

133

24

22

Indian   Wells

370,000

181.76

6

615,000

277.57

20

26

1

4

La   Quinta

306,000

189.35

19

379,000

184.58

130

149

21

20

Sun   City

251,000

154.40

28

28

1

 

Alvin and myself will be in town all summer except for short day trips here and there. Call us to schedule time to purchase your home. If you are serious about Palm Springs and Real Estate in Palm Springs NOW is the TIME!


Bookmark & Share

Winter in Palm Springs, a Wonderland to Canadians

Harsh Winters at Home Can Be Hard to Take

Shoveling snow can make one long for warmer weather, but that’s not likely to happen any time soon when winter begins in Edmonton or Montreal or just about any place in Canada. The only recourse that is real is to relocate. When searching for a sunnier site, many Canadians settle on Palm Springs. This renowned resort region typically has highs in the 70’s all through the winter months.

When Canadians come to check Palm Springs out, they are often astonished to be able to wear short pants and T-shirts while Christmas carols are playing in local stores. It is easier to relax here outdoors than it would be up north where staying outside can be a struggle for survival.

Cold weather can be especially hard on seniors who may feel the chill in their bones. While it is important to stay active as one ages, this can be tough when it’s frigid, and the sidewalks are invisible beneath a blanket of snow.

Flying South for the Winter Now Common for Canadians

It has long been a custom among many Canadians to head south in winter. Their travels often take them to Palm Springs. Realizing that this will be an annual occurrence, a lot of them are now taking the plunge and purchasing a place to reside in. This gives them the security of knowing where they will stay and that it will always be open and available.

Purchasing property in Palm Springs is also an excellent investment. Value here is high, and property appreciates considerably over the years. This is due to the lure the desert has over travelers. The region has long been a magnet for people wishing to relax and enjoy the warmth and hospitality the area has to offer. Palm Springs is also freeway close to Los Angels, a metropolitan region with millions of residents.

The Canadian consulate in Los Angeles reports that they get large numbers of inquiries from Canadians regarding the Palm Springs area. Recent unrest south of the border has made Mexico a less attractive destination and so Palm Springs has become a better option for tourists.

Time is Right for Buying into the Good Life

Favorable exchange rates make this a strategic time for Canadians to buy. The Canadian dollar is currently strong compared to the dollar so prices are lower than one might expect to pay. This can be particularly true when it comes to housing which has suffered from price drops of late. While the market has stabilized and has begun to show signs of an upswing, there are still many bargains to be had.

Some Palm Springs realtors have begun placing ads in Canadian newspapers seeking a share in a growing market. Canadians who move to Palm Springs find that more and more of their countrymen are calling the place home as well. They understand the value that having a place in the sun can bring. It makes no sense to suffer through another winter of discontent.



Bookmark & Share

Canadian Baby Boomers Buying in Palm Springs

Value a Lure along with the Weather

Realtors in the Palm Springs area are taking note of the fact that there is a growing trend for Canadian baby boomers to purchase homes in and around Palm Springs.  Several report that they are seeing such clients come in on a regular basis with the frequency greatest around Rancho Mirage, but running high throughout the Coachella Valley.

The big selling season in the region begins in November when cold weather elsewhere causes clients to flock in.  While the evidence is anecdotal and not yet fully assembled into a statistical form, multiple agents have reported a doubling in the number of Canadian boomers this season over the expected norm.  The strong position of the Canadian dollar coupled to the large number of listings is believed to be the reason behind the upsurge.

Many of the Canadian baby boomers see the Palm Springs real estate market as a safer place to put their money than the stock market would be.  Not only is it more likely to retain and appreciate in value, it affords them a place to stay as well.  Protecting their assets becomes a more critical concern as boomers approach retirement age.

Vacation Visits Lengthen in Term

The first time that Canadians visit Palm Springs, their stays may be short and combined with travel elsewhere.  They are on a vacation that includes visit to Los Angeles and other spots in California and surrounding states.  Once they become aware of the region’s attractions, they tend to stay longer

Canadian baby boomers have generally been here before.  They know what to expect weather wise and come here in great numbers every winter.  Many now marvel at the great prices to be found in the real estate market.  They are savvy investors and recognize a bargain when they see one.  The exchange rates are great, and it’s a buyers market with all the property available for sale.

Primary Residence Converts to Twin Homes

With their children grown and gone from homes, many boomers find they no longer have need for the large houses they have.  In the case of Canadian baby boomers, this often leads to a move to a smaller primary house and the purchase of a second home as a place to vacation in. Palm Springs turns out to be the perfect place for them to do this.

Canadian baby boomers can escape the harsh winter weather at home and luxuriate in the warm winter weather in Palm Springs and adjacent communities.  They can still enjoy life in the homeland, but may now opt only to do so in the warmer months.  As winter approaches, they pack up their gear and head south.  In this fashion, they can enjoy the best of both worlds.


Bookmark & Share

Why Canadians Are Buying Homes in Palm Springs

Canadians Have Clout in Today’s Market

Canadians now comprise the largest percentage of foreign nationals buying property in the U.S.  The figures are especially true in the Palm Springs Region where Realtors report record numbers of inquiries from Canadians wishing to buy in the region.

Experts suggest this is a result of the strength of the Canadian currency along with diminishment of the price structure of property in the U.S.  While prices have ceased slipping in Palm Springs, they remain well below the peak reached several years back.

The housing crisis has led to a glut of homes now on the market with plenty of bargains to be had.  Several Realtors in the Palm Springs area specialize in foreclosures and short sales where homes can be purchased for a fraction of their former worth.  Care must be taken to determine the home’s condition in these cases as owners may have neglected repairs and maintenance once foreclosure proceedings began.

Palm Springs and adjacent communities have been expanding for decades, and there is plenty of room in the Coachella Valley for expansion.  With the downturn in housing, there are now substantial listings of properties for sale.  These range from condos in town and along golf courses, and single family homes in both settings.  In addition, there are many homes scattered throughout the desert that offer solitary splendor.

Tax Codes Differ in Canada and U.S.

Buying property in Palm Springs is a pretty straight forward procedure for Canadian citizens.  Property taxes and fees are the same for all buyers regardless of place of origin.  The implications such purchases have on the income taxes Canadians pay can very so it is important to consult an expert in this area before filing tax returns.  It can be confusing what sorts of expenses are deductible and how loans should be structured to gain the best possible advantage.

Different tax standards can apply depending on whether a Canadian comes to live in Palm Springs permanently year round or just winters in the region occasionally.  There are also variations depending on whether one has retired or is still working.  If still working, there are differences if the work is done in Canada or the U.S.or if work is done in both places.  These days with so much work done on line, it can be difficult to determine exactly what is done where.

Renting Out Property Can Provide Income

Since many Canadians only live in Palm Springs for part of the year, it is possible for them to rent their places out for the rest of the year.  Such a strategy can allow a property to pay for itself.  Several agencies provide services devoted to this, and area realtors will be able to suggest firms to use.

Many Canadians are buying property around Palm Springs to rent out year round.  Homes and condos in the Coachella Valley offer excellent investment opportunities with long term prospects for appreciation in value virtually certain.  This is due to the region’s popularity as a resort destination with acclaimed winter weather, numerous golf courses, and chic shopping districts.



Bookmark & Share

Palm Springs Real Estate Market Can it be compared? assimilated in any way to the Canadian Real Estate Market

On of my potential buyer from Canada shared with me this morning his fears and thoughts and reasons why he is not “jumping off the fence and buying NOW in Palm Springs”

His argument is that the inventory in Alberta (where he is from) is growing and particularlyin  their resort areas “The Rockys”. His concern is now that they have more inventory in their resort area, that would bring more canadians buyers there, their prices will go down…less Canadians will buy here and we are going to see another “DIP”

Here is my answer to him : In the last three years, YES, over 60% of our inventory was purchased by Canadians compared to 20% in all the previous years. The reasons are:

  1. Canadians love Palm Springs because of its climate in the winter with no rain, sun and golf.
  2. Conveniently, the Canadian currency came to par with the US Dollar and stayed there until now
  3. Our prices came down significantly

All of the reasons above, made our resort area most attractive to Canadian buyers from all over Canada. We’ve had clients from as far away as Nova Scotia.

Comparing your resort market to our resort market is not the way to go. Yes! You have a bubble in parts of Canada. Quite  a few of our clients buy in Palm Springs because they cannot afford to buy art home. They are still investing but most come here to afford it.

The excess of inventory in your Rockies will NOT affect the Palm Springs market.  We are past the bottom.   You are free to wait for the next cycle.  History has proven that the cycles are about 10 years.  You can certainly wait until  this happens. Where will your dollar be compared to the US dollar at that time.?

SO!. Do you purchase and enjoy now or continue waiting?   Your choice.

 



Bookmark & Share