Category Archives: Foreclosures and Bank Owned

Canadian investors in Palm Springs

Canadians keep on coming to Palm Springs for real estate investments

 

There are two ways to go if you are thinking investment in Palm Springs and the area

 

The condo option

 

Buy a condo (small villa  with patio, and one common wall at least with the neighbor) in a gated community sharing pools, tennis courts , nice landscaping and that would be rented to “snow birds” as seasonal rental. The home owners association fees could run from $300/month up to $600/month depending if it is  a golf community or not and covering the maintenance of the structure, the roof, the landscaping, the pools , insurance, trash and cable TV. This fee would be additional to the property taxes which are traditionally 1.25% of the selling price. For a 2 bedrooms condo the rent to expect would be $2000 to $5000/month depending on the community and the condition of the unit. The season starts end of December and ends mid May.

 

The free standing home option

 

Or chose to buy a free standing home (with or without a pool) in a gated community or not (all depending on the budget of course) . All the expenses included in the home owners association fees mentioned above  will be at your charge. This home could be rented year around and for a traditional 2 or 3 bedrooms the rent would be $1200 to $1800/month depending on the home



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Is Palm Springs real estate market the same as California Real Estate Market?

Not everything Leslie Appleton Chief Economist for the California Association of Realtors says about California is applicable for Palm Springs Market. It is close but still vive la diferece . The best would be to ask you Realtor about the very specific Palm Springs Real Estate you are looking at. Especially if you are from Canada and are not familiar with Palm Springs and the area.



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Palm Springs – the weather is on our side helping our real estate market

California and Palm Springs we are here for you

I understand that most of the US and Canada are cold and even colder than any other winter. Blizzard I hear OMG! temperatures below freezing!

I am OK with our higher taxes, with the burning heat in the summer just to have the opportunity to enjoy our wonderful winter.

My clients talk to me on a daily basis and relate the horror stories of no electric, cleaning the snow at their front door, cars buried under the snow…Does that create the “urge” to find a place as small or as big as they can afford and spend time IN THE SUN.

Maybe this is why it is so surprising to a lot of potential real estate buyers out there (specially from Canada) that our prices are “high”.

Come and see people in shorts on Palm Springs Strip sipping their coffee in the sun.



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Real Estate Market Inventory

Real Estate Market : we keep on hearing “It is going to get worse” and the “foreclosures are going to flood the market”.

Well, if I believe the numbers below (and I have to because these are REAL numbers), this is  NOT TRUE for Palm Springs and the area.

The numbers of Bank Owned and Short Sales properties have, in fact, decreased all in all. Except for Cities like Indio and Cathedral City (less of resort communities) we can see the percentage of Distressed properties coming down and that means that prices will show more stability or an  increase.

Under 6000 active listings is considered Low Inventory, that could mean prices going up ,add to the fact that we are in season .If you are still “not sure” look at the numbers below  and call us for showings.

InventoryJan



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Palm Springs Real Estate – Inventory at the end of this year

It’s getting close to the end of our calendar year and I am sending you the current inventory for our area.

• Not much change since a month ago and this is good.
• The inventory is at 5 to 6 months worth of listings active for the whole area.
• What is most important is that the number of Shortsales and REO’s did not increase in % compared to the total number of active listings.
• Still showing 10% of REO’s and 13.4% of Shortsales of the total 5616 listings available active for sale.

So we have STATUS QUO month over month and if you are waiting for the “dumping” of more foreclosures on the market ..it does not seem to be happening here. We don’t see prices or inventory changing much ; only the nicest units, best locations and best prices will be going first. Now is as good a time as any to buy. Call us to schedule.

Foreclosures – California is looking better so is Palm Springs

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California  is number 13 out of 20 States on the Chart of Non-Current loans as per  LSP (“Lender Processing Services”)

The 282,528 foreclosure starts initiated by lenders in August represented a 29 percent increase from the low for the year, seen in April, and was the highest level since July 2009.

LPS estimates that 13.02 percent of all outstanding loans — were past due in August, down  from the same time a year ago.

The five states with the highest percentage of non-current loans were Florida (23.5 percent), Nevada (21.3 percent), Mississippi (18.6 percent), Georgia (15.6 percent) and Illinois (14.4 percent). California with 13.3 percent is number 13 on the chart.

The same states showing a high rate of foreclosure are also the ones showing  the highest rates of new, seriously delinquent loans,

California used to be number 3 and 4 at the peak of this recession.  Now is that good news? I keep on saying that Palm Springs California is doing even better than that

Selling Real Estate under 115 degres heat in Palm Springs

Mid August, the hotest time of the year and buyers are buying real estate in Palm Springs

 

I can’t believe that our best selling month for this year is going to be August. We have been showing properties to clients everyday single day since the beginning of August and coming up we have appointments set up everyday, sometimes two buyers per day.

 

Most Realtors  flee the area during the summer months

 

Alvin and myself always make it a point of staying in Palm Springs because by experience we have seen that the strongest months for serious buyers are the summer months.

 

Need to educate those buyers to avoid frustration and disapointment

 

Again because of the media, potential buyers from out of the area, get the wrong impression and have to reconsider their budget after seeing what the market really has to offer.

Prices came down 30% to 40% since the 2005 years and that is where to look for deals.

Our market has not been flooded and is not flooded with huge inventory of new built (over built) homes. Prices in fact have stabilized and went up month over month for the last quarter.

 

We are here for the rest of the summer (this is until the end of September). Give us a call



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Selling real estate during the summer in Palm Springs?

Yes we are selling real estate in 115 degrees heat!

 

Can you believe it? Buyers flying in to look at properties and buy? I have had clients during the whole month of July, who flew in, looked at properties for 3 days , played golf early morning and looked at real estate in the afternoon.

 

Same market trend going towards more US buyers.

 

Canadians buyers are still here and still buying but I can see a raise in the number of US residents buying second homes.

A second homes community has its own dynamic and hard to compare to the rest of California. We are definitely a micro market call me to hear more : (760) 799 5308 or visit http://www.claudinereal.com/Area_Sales_Statistics.htm

Foreclosures are still hitting us, some real good deals out there and the buyers with cash (still very hard to get loans on second homes) are making a killing.

We always spend our summer at home, despite the heat, because with the years we found out that this when the real buyers (not lookers) are here and we want to be here to help them close deals and grow our business.

 

The best deals are traditionally found and made in mid summer…and we are here

Palm Springs Real Estate Market Update

What is happening now in Palm Springs Real Estate Market?

 

Here is my take for this month. At the end of the season, the sellers are anxious to sell before the summer, thereby accepting lower offers. This created a lower median price point. There is still time to jump in and buy a good “real estate” value for your money in the Palm Springs area.

 

Here are the numbers for June compared to May :

  • Number of total closed sales in June compared to May: Almost the same
  • Median price of sold properties (overall) compared to May: close to 9% Decrease in price – condo prices held whereas the single family homes brought the overall median price down. (particularly in Indian Wells and Sun City)
  • Number of Bank Owned sold :5% increase.
  • Number of Bank Owned still for sale : almost the same
    • The figures in red mean the numbers are showing worse results compared to the previous month and green means the numbers show an improvement compared to the previous month

 

Yes as it has been and said for the last 2 decades, the time to buy in Palm Springs is the summer. Sellers are “RIPE.” The “daring buyers”, out there ready to come and look at properties in 110 degrees of heat, will be rewarded.

Alvin and I are here for the summer, let’s set an appointment.

 

Total  homes sold in June 2010 : 513
Median Price all in all : 358,329
Total Bank Owned (REO’s) sold in June 2010 :
135
Total Bank Owned (REO’s) active in June 2010: 270

 

Cities MedianPrice
condos sold
Price/sqft
condossold
Total
condos
MedianPrice
singlefamily
Price/sqft
singlefamily
TotalSingle family Total
sold
Sold REO’s Active REO’s
Palm Springs 150,000 131.14 79 332,000 192.28 87 166 58 97
RanchoMirage 280,000 189.23 19 602,500 221.23 34 53 6 27
Palm Desert 227,500 158.88 56 317,000 177.86 63 119 28 63
Indian Wells 495,625 196.56 4 547,000 283.27 18 22 2 12
La Quinta 270,500 190.50 22 404,500 196.96 110 132 38 66
Sun City 315,000 179.40 21 21 3 5

Real Estate opportunities in Palm Springs. Don't miss the Band Wagon

The data are encouraging for the real estate market..Are you sure you will not miss the band wagon?

Lenders repossessed properties at record rates during May, even as the number of homes entering the foreclosure process declined, according to RealtyTrac.

Foreclosure-related filings fell 3 percent from April to May, driven by a 7 percent drop in default notices and a 4 percent decrease in scheduled auction notices.

All 50 states posted increases in bank repossessions from a year ago, RealtyTrac said, as lenders worked through a backlog of distressed properties that’s been building up over the past 20 months.

“Defaults and scheduled auctions combined increased by 28 percent from 2007 to 2008 and another 32 percent from 2008 to 2009, creating a buildup of delayed bank repossessions,” said James J. Saccacio, RealtyTrac CEO.

The number of properties hit with notices of default in May — 96,462 was down 22 percent from a year ago and off 32 percent from an April 2009 peak.

Foreclosure auctions were scheduled on 132,681 properties during May — about the same as a year ago, but down 16 percent from a peak in March.

Nationwide, 1 in 400 homes was subject to a foreclosure-related filing during May. Nevada topped the list of states with the highest rates of foreclosure-related filings, at 1 in 79 homes, followed by: Arizona (1 in 169 homes), Florida (1 in 174 homes), California (1 in 186 homes), Michigan (1 in 223 homes), Georgia (1 in 292 homes), Idaho (1 in 309 homes), Illinois (1 in 350 homes), Utah (1 in 360 homes) and Maryland (1 in 399 homes).