What am I seeing ahead for Palm Springs and the Desert Cities Home Market? I would say :
Good Times AHEAD – the market has shifted throughout the Coachella Valley. The investors are still looking but not much for them that makes sense (the distressed properties disappeared – presently less than 8% of the sales and should decline to 0%) and the higher-end homes are selling. This is leading us to a much healthier market.
The number of homes sold this year compared to last year is much lower but the new homes sales is increasing: this is the sign of the recovered market. Fewer Investors, more home buyers.
The Boomers are a big part of this shift, the net worth of the area shows a significant growth and we expect the boomers to buy more retirement and second homes in our area in the next two years.
The Canadians who represented 85% to 92% of our market in the past 3 years, kind of went away (their $$ lost value to our $$ and the increase in our prices also added to fact that they are holding off buying homes in our area). They represent less than 15% of my buyers in 2014. THIS IS THE SHIFT. We loved what the Canadians brought to the table and we know they will be back as soon as their $$$ is back to par with ours.
All in all a healthier market, with US nationals buying again, all we need is for the inventory to keep steady in order to keep prices realistic and affordable for all.