Category Archives: Palm Springs Area Market Updates

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.



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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!


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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.



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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.

 



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May 2012 Market Update for California Real Estate Market

YES! it is official the market is picking up…In our micro market in Palm Springs California, particularly even so!
OK this is NOT the end of seeing distressed properties come on the market but we made that turn and the market is correcting itself at least from what I am seeing in our market with less than 9% of the inventory as distressed properties .
Please watch this video and enjoy the good news! Rush , rush and catch the last waggon of the train.



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Newest Housing Data Signals Improvements

The latest round of real estate data shows home-builder confidence is soaring as homes in the United States become more affordable. In California, prices and sales appear to be on the mend.

In a note back in May, Ian Sheperdson, chief U.S. economist for High Frequency Economics, wrote that the improvements in the housing market may be a result of credit loosening. The lack of readily available home loans has been a significant hindrance and one of the stumbling blocks to a rising market, he wrote.

Reacting to the rise in builder confidence, Sheperdson’s note further stated that the key factor is improving access to mortgage finance versus the level of rates, which have been very low for a long time. After a credit event, availability of credit is an important factor to real recovery; housing is on the cusp, he wrote.

Also in May, the National Association of Home Builders reported that its index of confidence in the market for newly constructed single-family homes climbed to a level of 29, the gauge’s highest reading since May 2007.

The West was the only region that saw a decline, down two points to 29. The Midwest and South were up five points each to hit 27 and 28 respectively, and the Northeast was up six points to 32.

In many housing markets, builders are reporting that sales and buyer traffic have picked back up after a pause this past April, Barry Rutenberg, chairman of the builders association, said in a news release.

It appears we have resumed the gradual upward trend in confidence that started at the beginning of this year, as excellent affordability and stabilizing prices encourage more people to pursue a new-home purchase, he stated further in the release.

A separate index produced by the National Association of Realtors indicated that homes in the United States reached a record level of affordability in the first quarter of this year. According to research, the index shows a family that earns the median annual income of just under $61,000 can afford a home costing $325,500.

And finally, home prices and sales appeared to improve in the Golden State as well, according to the California Association of Realtors. The statewide median price rose above $300,000 for the first time, and sales were at their highest level in more than two years, the group said.

A record-high housing affordability coupled with a brighter economic picture, pushed the Spring home buying season off to a strong start, LeFrancis Arnold, president of the association, said in a news release.

With interest rates declining to new record lows in recent weeks as well as a continually improving economy, we should see a steady improvement in the housing market throughout the end of the year, Arnold said further.

The California real estate group also reported that the amount of inventory on the market remained low. About four months and just under a week’s worth of homes were available for sale on the market, according to the association’s inventory index. Around six to seven months is considered a healthy market.



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Taquitz Country Club

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Located in Palm Springs, Taquitz country club is like an undiscovered pearl in the heart of the Palm Springs area. The Taquitz country club consists of two scenic 18-hole golf courses that both have spectacular views of Palm Springs and were even rated by Golf Digest as ‘one of the best places to play’.

 

Directions to Taquitz country club

  • If one is at Palm Springs, take the Palm Canyon drive from downtown heading East and take a left turn onto Golf drive, the entrance to Taquitz country mile is located just one mile to its left.
  • If one is on the East Interstate 1-10, they should exit at the Gene Autry exit towards Palm Springs Airport exit and turn right. One then turns left on Ramon road and right on Crossley road. From here, the golf course entrance will be one and a half miles to the right.
  • If one is on highway 111 heading towards Palm Springs, turn right on to golf club drive and the Taquitz Country Club entrance will be one mile to the left.
  • If one is headed west on interstate 1-10, exit at the Ramon road exit to Palm springs and turn left towards the Aqua Caliente Casino onto Ramon road. From here, branch into Palm Springs and turn left after approximately 6 miles. The golf course entrance will be just one and a half miles to the right.

 

Taquitz country club golf courses

 

The Taquitz Country Club has two unique golf courses each with the following characteristics;

 

Legend Course

 

This spectacular course was designed by renowned designer Billy Bell in the late 50’s and it has some of the most beautiful landscapes in the area. The Legend course was renovated not too long ago by Palmer Course Design Company. This course is huge and extensive and stands at a whooping 6815 yards with 60 bunkers. The Legend Course at the Taquitz country club is also a par- 72 course that has the traditional golfing layout that is commonly liked and used by most golfers.

It also features greens that are heavily sloped from front to back making the playing experience on this golf course highly challenging. The Taquitz Country Club at the same time also offers the player picturesque mountain views and fairways lined with trees that create the perfect back drop to the golfers as they play.

 

Resort Course

 

This elaborate golf course was designed by Ted Robinson Jr. who made it using the links style and technique making the resort course into what it is today. The Resort Course found at the Taquitz country club features a par- 72, 6705 yard course that has four sets of tees. This course is the more recent of the two courses at Taquitz country club owing to the fact that it was opened to the public in 1995.

The Resort golf course features a perfect blend of spectacular architectural design and natural desert beauty, which most golfers relish and enjoy. This desert design coupled with the magnificent waterscapes, and spectacular mountain views will leave golf players enjoying the game and wanting more of the breathtaking scenery.



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Desert Modernism – Palm Springs

The European Bauhaus construction style is the inspiration behind Southern California and Southwestern U.S. architecture, also known as the Desert Modernism design philosophy. The angular lines, neutral shades, and stone accents are complementary to the arid, sunny weather.

Homes that are designed in Desert Modernism style have expansive glass windows and streamlined, uniform structure.  Many of the homes created in a Desert Modernism construction format include high, dramatic rooflines and a combination of materials; for instance, wood and stone, or steel and plastic are often paired in cabinetry, doors, and window paneling. This regional take on International-style architecture also features landscape additions like large rocks, trees, and cacti, which makes Desert Modernism a customized style of construction. An outdoor living or recreational space is also included in homes that are designed based on Desert Modernism.

Architects that are associated with the Desert Modernism style include Richard Neutra, William F. Cody, John Lautner, E. Stewart Williams and Donald Wexler.

Examples of Desert Modernism architecture are evident all throughout the Southwest region of the U.S. and the Southern portion of California, but elements of this school of design are especially concentrated in Palm Springs, California. Landmark buildings in the area include the Grace Lewis Miller House, which was built in 1937, with Richard Neutra as the architect. Albert Frey is responsible for the construction of Frey House II, which was erected in 1963; Frey was also the architect behind the Loewy House, which was completed in 1946. E. Stewart Williams designed the faed Edris House in Palm Springs in 1954, as well as the Tramway Upper Station in 1963; Williams was also the architect who headed the building project for the Palm Springs Desert Museum, now the Palm Springs Art Museum, in 1976. John Lautner built the Arthur Elrod House in Palm Springs in 1968.

The Alexander Houses, a construction staple in Palm Springs, are especially sophisticated homes built by Alexander Construction Company that further illustrate Desert Modernism. These homes are adorned with tall, slim palm trees, wood paneling in modest shades of brown and gray, angular roofs, and grass cut in geometric shapes.

Although Desert Modernism became popular at the beginning of the 20th Century, many homeowners continue to request home accents and construct additions in this style.



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Canadians Have Financial Advantages Buying in Palm Springs

Rates Make This a Good Time for Canadians to Buy in Palm Springs

 

The Canadian dollar is currently enjoying the most favorable exchange rate versus the U.S. dollar in decades.  Add to that the fact thatU.S.real estate prices have fallen from 30 to 50% over the last several years, and the result is that there has likely never been a better time to buy in Palm Springs then right now.

The Palm Springs area is acknowledged as one of the most attractive regions in theU.S.in which to make a purchase.  The locale is internationally renowned as a resort destination.  The dramatic setting beneath the majestic San Jacinto Mountains appears picture perfect, especially in winter when the snow capped peaks provide a striking contrast to the golf course studded desert flatlands.  There are Indian Casinos inside the city, and Las Vegasis an easy drive away.

Surveys show that a fifth of all Canadians are considering purchasing property in the U.S.  They already comprise about a quarter of the international buyers of U.S.real estate.  Such transactions have become so common that most major financial institutions are familiar with the process and able to offer assistance.

 

Process Less Complicated and Time Consuming

 

Experts now view the procedures for Canadians buying in Palm Springs as no more difficult than it would be in their home provinces.  When problems do arise, they tend to involve differences in the income tax codes between the two countries rather than anything about the purchase of the property itself.  For this reason, it is suggested that buyers consult with Canadian financial advisors regarding income taxes before making a purchase.  They will be able to walk clients through the legal fine points that U.S.advisors may be unaware of.

Tax planning should be part of the purchase strategy.  Often times, buyers make a purchase without considering the tax implications until it is time to file their returns.  It is also important to keep abreast of changes in the tax codes from year to year.

 

Many Selections Available Now

 

Because of the so called housing crises, there are many choice properties to select from in the Palm Springs area.  These extend into neighboring locales such asPalm Desert, La Quinta, and Cathedral City.  Each community has its enthusiasts, but all enjoy the same spectacular scenery and warm winter weather.  These are just two of the region’s positive attributes.  Others that add to the enjoyment would be: vibrant night life, an acclaimed community of artists, attractive shopping districts, and numerous golf courses.

Realtors can provide listings of properties in foreclosure or available for short sales.  There are often terrific bargains to be had in such distressed properties.  Local Palm Springsrealtors will also be knowledgeable about property taxes and options for financing.

Many Canadians buy property in Palm Springs for investment purposes or as second homes.  The many attractions to be found here help add to value and protect from downturns.  They also make it easy to rent out places bought.



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Is the change of hearts for banks going to change our real estate market in Palm Springs?

Changing pace of real estate inventory in Palm Springs?

Yes the inventory is shrinking but we also see a change in the Banks policy as far as processing shortsales and foreclosures.

We see a much lower number of bank owned properties on the market and the banks are now committed to “work” Short Sales in a faster and more efficient way.

I understand that change in the market and I went for a two days training to become a Certified Distressed Properties Expert . Ready to work with the banks to get my  buyers and sellers reach the best solution in their transactions.



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