A headache you say? Yes in a way. For the last few months we keep on hearing how well the market is doing and how WE THE REALTORS are excited about the prices increasing , the low inventory, the season picking up and how easy it is going to be sell homes in Palm Springs, and the Desert Cities : Rancho Mirage, Palm Desert, Indian Wells and La Quinta which are the cities I cover. No matter if located in Country Clubs or just free standing homes.
Yes prices came up and because of the lack of inventory, when we meet with sellers and take a listing we have tendency to be optimistic and naturally want to make our sellers happy : that is take listings at higher prices (higher than the last one sold – this would be the “comp” ). Next thing you know the buyers come along and when they are ready to write an offer, by the same token “no Comps” so they want to go with the last one sold and even lower. This take us to a “dead end” situation that hard for us Realtors to make buyers and sellers meet and get the sale done.
If we look a the numbers for the last 14 days covering the cities of Palm Springs , Rancho Mirage, Palm Desert, Indian Wells and La Quinta for condos as well as single family residences we see 418 price reductions on a total of 3530 Active listings. That is 12% of the prices got reviewed and the sellers are listening, after all we are in “season” that is a few months only ahead of us to get it done.
I believe that both buyers and sellers will have to adjust their expectations and the next month will tell us the story.