Category Archives: Rancho Mirage Real Estate

REOs Bank Owned Properties in Palm Springs

The market is turning – Palm Springs Real Estate is on its way to recovery

Just to confirm my previous post showing a chart and how the inventory is looking I would like to share a story with you: i wrote an offer on a home in Palm Springs, free standing home , in a decent condition, new listing just before President day week end. the price was over 250K

We wrote an offer a full asking price and presented it to the listing agent,by time it was presented to the bank 3 days later (because of the holiday week end) there were 13 offers on the table..

Now do you think that whoever is going to buy this property is going to buy it at a fair market price or will it be over priced? I say over priced .

So what I was predicting is happening, the number of  bank owned properties is decreasing and prices in this price range up to 300K will go up very fast.

I believe that the next few months will be the last of the “super deals” in the lower  end of the market in Palm Springs and  the Desert Cities Real Estate.

 



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Buyers'market turning into a sellers'market in Palm Springs Real Estate?

Palm Springs Real Estate market is changing and for the better

In my previous blog I was showing the numbers for our inventory in Palm Springs and the Desert Cities by price range and also showing the number of bank owned properties for each category SOLD and ACTIVE.

During the last week and in the lower “entry level” price range , meaning up 300K. I found myself in a bidding position each time. Reminds me of the good years ..
I am not saying that we are recovered and certainly not considering that the banks are just as difficult in giving out money. But I did find myself in this situation in many years bidding on properties which are regular equity sales and not even bank owned.

I am full of hope and happy for all my clients who bought during the last year they will see prices go up.

Still some good ones out there..



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Canadians buying Real Estate in California

Warning for Canadian Buying real estate  in the US

Canadian media are creating a panic wave among the people  in Canada who are thinking of investing in real estate in the US. Mainly talking about the “risks” and “pitfalls” for tax issues and really scaring off everybody.

These articles are great and of great use but the way they are written and presented  is “scaring” potential buyers away.
As a Realtor in Palm Springs California (sunny and warm during the winters) , a snow birds destination, I have sold tens of properties to Canadians since the turn of the economy.
Everything I am reading in this article bring nothing new to my table, I always recommend to my clients to consult a cross border accountant before they buy.
But this is not meant “against Canadians” as it appears to be in everything I have read lately in the Canadian media. This is the way real estate is taxed and legislated in the US for US residents and citizens as well.
This why the buyers should carefully chose a Realtor who is not just a “door opener” for them but a knowledgeable professional who will walk them through and guide them.
Buying real estate in Palm Springs today (because it is a resort area) still remains an excellent investment for now as well as the years to come as long as you do it the “right way”.



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Palm Spring Real Estate – Buyers

Buyer losing opportunity of a great real estate deal in Rancho Mirage

Another buyer suffering for the same disease most buyers are afflicted with,  is now full of remorse and anger. Here the story

  • the property is located in one of the prestigious communities in Rancho Mirage
  • the home is now owned by a bank
  • the listing on the market for way over a year
  • a potential buyer (very interested) writes an offer at 20% under the asking price
  • the seller comes back with a counter at 9.5% under the asking price
  • the buyer “plays” and comes back at 10% under the asking price (just had to “squeeze” a little more)
  • meanwhile another potential buyer (Murphy’s law) shows interest
  • the first buyer is made aware that there is another offer coming
  • the second offer comes back at 4% under the listed price and better conditions all together
  • the seller accepts the second offer

WOW! now the first buyer is panicked and is READY to sign the first counter offer he received from the bank and is ready to be as a back up offer just to have the hope of maybe buying that home that he so much wanted..

It might take another year or more before they find a home that they like that much within their price range.

Buyers in Palm Springs or Rancho Mirage or any other city in the Desert, please be aware that yes when looking at high end properties that you can afford : you are not the only ones in that position. Other people can also afford to buy. By the way this is true for any price range and any kind of property.

As your Realtor I would always tell you , yes it is OK to try but when you get a counter (especially from a bank) look at it seriously and if you like the property enough just take it. Most of the time there is  another offer, always higher  right behind and the seller will of course accept it without even giving a second chance to that first offer.

I call it a disease because it is stronger than what your realtor can tell you, it is stronger than the interest you have for that home, and it will leave you unhappy and frustrated once it is over.

I am so sorry to see it happening again and again. Please trust your Realtor who understand how things works, who generally has inside information that he/she cannot share with you but that they will  use to get you where you want to be. BECOME THE OWNER OF THAT HOME.



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Monthly Statistics for Palm Springs Real Estate

Here are the numbers covering the sales for November and comparison month over month for Palm Springs and the Desert Cities.

The comments next to the numbers should help you better understand that our market is a micro market and what applies to most of California does not apply to beautiful Palm Springs.

November 2011 results
Total homes sold : 385 a 7% month over month decrease
There were more potential buyers who were not ready to pay the market price for the homes they looked at and they went home without buying.
Median price for condos : $222,100 almost 7% decrease – 3 times as many bank owned sold in that category brought the median price down.
Median price for single family : $497,580 huge increase due to high end homes sold in Indian Wells.
Total Bank Owned (REO’s) sold : 79 a 15% decrease reflecting the fact that less Bank Owned inventory on the market.
Total Short Sales sold : 55 the same number  reflecting the same decrease as total sale
Total Bank Owned (REO’s) active in December 2011: 167 a 9% month over month decrease
Total Short Sales active in December 2011:237 a 9% month over month decrease
Total Inventory for the cities we cover : 3169 a 9% month over month decrease.The inventory is really low, so when you are here, you need to understand that if you are not ready to pay the price, someone right behind you will.  The inventory for short sales + REOs is just about 13% of the total inventory, this is slightly down compared to last month.The number of distressed properties in the cities we cover has come down.So prices WENT UP

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

137,000

116.32

54

365,000

183.57

79

133

30

44

RanchoMirage

285,000

171.96

11

567,500

200.66

26

37

9

22

Palm Desert

212,000

144.84

39

302,500

166.16

54

93

15

52

Indian Wells

297,500

140.34

4

1,175,000

346.26

11

15

1

9

La Quinta

179,000

140.51

9

313,000

161.08

81

90

24

39

Sun City

262,500

154.27

17

17

0

Numbers for October 2011

 

Cities MedianPrice
condos sold
Price/sqft
condossold
Total
condos
MedianPrice
singlefamily
Price/sqft
singlefamily
Total SFR Total
sold
Sold REO’s Active REO’s
Palm Springs

123,000

112.37

49

285,000

178.51

67

116

24

52

RanchoMirage

215,000

118.15

14

366,000

185.02

40

54

14

24

Palm Desert

168,000

118.31

39

270,000

163.89

49

88

34

59

Indian Wells

400,000

143.58

2

624,000

225.99

14

16

4

9

La Quinta

297,094

154.76

14

249,000

138.84

66

80

29

40

Sun City

257,000

143.58

7

22

1

2



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Real Estate Market Update in Palm Springs

Market Update for Palm Springs September 2011

The numbers are encouraging (for us and for the economy) because they show some increase in prices, fewer bank owned sold and fewer bank owned on the market. This confirms what we talked about last month regarding the banks shying away from foreclosures. They are trying to help the homeowners by slowing down the process and asking them to try and sell the distressed properties as short sales. This is why we are seeing more short sales on the market and more short sales selling. The banks are making efforts to process them faster. I am showing you, below, the results for the month of September 2011 and comparing month over month with August 2011. As well, I am also giving you the numbers comparing year over year. One thing is sure, properties are selling and prices are not “crashing”.  Let’s talk. So the weather is really cooler at under 85 degrees today and it might be just time to call us and set an appointment to buy a property in Palm Springs before the big seasonal rush .

MONTH OVER MONTH

September 2011 results versus August 2011 as usual green for better results red for worse.
Total homes sold : 390 versus 434 a 10% month over month decrease (normal reflecting the sales for August which is our hottest month)
Median price for condos : $224,600 versus $210,035 almost 7% increase
Median price for single family : $358,750 versus $350,358 a slight increase
Total Median price : $291,675 versus $280,196
Total Bank Owned (REO’s) sold : 95 versus 113 a 16% decrease reflecting the same as total number of sales
Total Short Sales sold : 56 versus 62 a 10% decrease reflecting the same as total sales
Total Bank Owned (REO’s) active in October2011: 188 versus 202 a 7% month over month decrease
Total Short Sales active in October 2011: 281 versus 250 – a 12% month over month increase
Total Inventory for the cities we cover : 3008 versus 2553 last month an 18%
month over month increase. The inventory for short sales + REOs is just about 16% of the total inventory, this is the same month over month. Short sales represent a growing number while the REOs number is shrinking.
YEAR OVER YEAR
Total homes sold in September 2010 : 329 compared to 390 in 2011
Median Price all in all in September 2010 : 296,413 compared to 291,675 in 2011
Total Bank Owned(REO’s) Sold in September 2010 : 107 compared to 95 in 2011
Total Bank Owned (REO’s) Active in October 2010: 304 compared to 188 in 2011



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Investing in Palm Springs? While sitting on the fence here some interesting reading

Mistakes housing investors make
With traditional investments delivering low returns, some are considering buying rental housing.  However, potential investors should do their homework and avoid the following common mistakes.

Here are the SIX mistakes housing investors make. The traditional rent, investors would like to see is 1% of the sales price (an annual gross return of 12%), but after expenses it is more like 5% to 6% . Nothing wrong with that and certainly more than some other investment options.

  • Mistake number 1 : confusing a cheap deal for a good deal.

It is true that you can buy some properties in certain areas  at a ridiculously low price (generally in overbuilt deserted areas)  – it does not mean that you can rent them out. In deserted subdivisions homes not attractive to buyers can also be not attractive to renters. But Palm Springs as a resort area offers properties (condos or free standing homes) generally in  gated communities well kept and attractive.

  • Mistake number 2 : overlooking key costs such as repairs and closing costs – as well as resale costs when time comes. But in Palm Springs , many of the homes are second homes and generally sold turnkey furnished ready to go.
  • Mistake number 3: Forgetting that “time is money” – calculate the potential time of occupancy. But in Palm Springs, most of the “investment properties” rent only for the season (December thru end of April) at a price which is 2 to 3 times the price of a long term rental for the same size property. This would be equivalent to the return that long term annual rental would bring. And there are never enough of those rentals available
  • Mistake number 4: assuming that you will sit back and collect money : tenants also lose their jobs and it is hard to get them out of the property. But in Palm Springs, seasonal renters pay you in advance for the whole length of their stay and you never have to deal with late payments or no payments.
  • Mistake number 5 : underestimate repairs costs : advice : set aside 6 months of rent to cover repairs. In Palm Springs too this would have to be taken into account though your typical tenants are couples with no children, retirees coming to enjoy their winter here, eating out most of the time. Also you can always offer your cleaning team to maintain the home every two weaks and make it part of the conditions.
  • Mistake number 6 : assuming that owning a rental is the same as owning a home: tenants are more demanding than owners and you might want to contract a management company  But with seasonal rentals- a good concierge and cleaning company – your own advertising on www.VRBO’s.com  is another option for management company.

NEW


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Palm Springs Market Update September 2011


August Market Update for Palm Springs Real Estate

Just comparing the numbers year over year, we actually are in the green and look better than we could think watching gloomy news.

the numbers below the video will demonstrate the point.

[kml_flashembed movie="http://www.youtube.com/v/G1_HufO98xo" width="425" height="350" wmode="transparent" /]

 

Total  homes sold in August 2010 : 331
Median Price all inclusive : 315,653
Total Bank Owned (REO’s) sold in August 2010 :
99
Total Bank Owned (REO’s)Active  in September 2010: 315

Total  homes sold in August 2011 : 434
Median Price all inclusive : $286,578
Total Bank Owned (REO’s Sold in August 2011 : 113
Total Bank Owned(REOS’s) Active in September 2011:

Surprising…not that alarming after all?


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Rancho Mirage Vacation Homes Owners not happy

RanchoiMcitysymbol

Rancho Mirage has launched a hotline for residents to file anonymous  complaints about vacation rentals.

This new ordinance will allow residents to disclose homes that are rented not in accordance with the rule allowing vacation rentals as long as they are at 28 days at the time.

For vacation rentals under that time line, the owners have to register with the city, get a city business license  and pay for transient occupancy tax.

Also made clear that the occupancy cannot be more than 2 guests per bedroom.

What is going to happen to all the “party houses” and their owners? Of course this is now starting a polemic among a good number of such homes. Interesting to see if the other desert Cities  will follow.



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Sales taxes in Palm Springs

Good News for Palm Springs and the area

So now you can come and spend your money in Palm Springs, starting today July 1st, the sales taxes came down from 8.75 to 7.75%.

Is this our last hurrah? Traditionally the 4th of July week end is the last BIG week end for Palm Springs and officially closing the SEASON.
But we are here Alvin and Claudine will be here all summer to answer your questions and show you homes .
The summer still remains the best time for buyers in Palm Springs.

Are you coming?