Market Reports

5 things for local realtors to keep in mind

Top 5 things consumers want in a new property:  Full disclosure..these 5 things came from a survey taken by Coldwell Banker.  I’m not a huge believer in surveys because let’s face it; most of us don’t even answer our phones!  But..I do like reading them and I figure there is always something interesting and pertinent to my real estate business.  Keeping up on various data, reports, surveys, and of course social media helps realtors keep up on changing ideas.  Can’t hurt!  If you are looking to buy or sell real estate in the Coachella Valley, give local resident and realtor, Kim Kelly a call at 760-285-3578.

Top 5 Things 

1.  Price over location:  Well, this would be a switch, but also very understandable.  56% of respondents in this survey prioritize price over location.  This priority is particularly notable among women, with 60% valuing price first compared to 48% of men.  Feels like this is a direct reflection of our high prices and low inventory!
2. Relocation:  Sellers who plan to sell their homes in the future are considering relocation, with 66% saying they plan to relocate to a different city, state or country.  I work with buyers who are thinking of re locating often.  Generally, we start with exchanging information about the area, country clubs, gathering general information on what they are looking for.
3. Social Media influence:  This stat was startling to me..43% of consumers report being influenced or highly influenced by social media in home buying decisions.  That number is even higher among luxury consumers , with 73% saying the same.  PUt it on Instagram or Tik Tok I guess is the motto here!
4. What is your dream property?  There is no one size fits all, other than 49% say their dream home is “mid size” with 3-4 bedrooms and 2-3 bathrooms.  Nearly a third of consumers prefer homes in the South, and a quarter favor the Northeast.  When it comes to style, the younger (18-24) is the least likely to favor “ranch” (8%) while the 55+ group is most like to favor ranch (21%).  There was a 16% response from buyers that indicated they had no style preference.
5. Would you use a Realtor:  This one wasn’t actually a part of the survey, but I strongly believe we still have a very important role in the buying and selling of properties.   I’m working with a Calif. licensed agent right now.  She doesn’t work the Coachella Valley, and chose to work with a professional who DOES work the Coachella Valley.  I KNOW the area, and I know the comps.  We listed her property at a fair market value, and we got a full priced offer in 26 days.  We agents DO have an important role to play in the buying or selling process!

Take a tour of this lovely 9.7 acre organic date farm..just $795,000

Enjoy the desert sun and views at one of our Eastern Coachella Valley top 3 golf course communities.

La Quinta Sales Stats; Madison, Hideaway & Quarry:  Today we’re going to look at the sales stats over the past 6 months for 3 of our most popular gated golf course communities here in the Eastern Coachella Valley.  The Hideaway, ever popular for it’s jumping social world.  The Quarry, the deserts’ only top 100 Private golf courses, and The private Madison Club, quite possibly the Coachella Valley’s most exclusive golf course community.  If you are looking to buy or sell your Coachella Valley property, give local resident and realtor, Kim Kelly, a call at 760-285-3578.

REAL ESTATE STATS, PAST 6 MONTHS

1.  Madison Club:  One of the most private and exclusive golf clubs in the Coachella Valley, Madison Club has an HOA of approx. $2,000/month + $6,000/quarter.  There are currently 9 homes available for purchase, ranging in price from 9.5 to 39 million.  There is one property in escrow for $5,880,000 and 2 homes have closed in the past 6 months for 10.3 mil and 21.5 mil.

2.  The Quarry:  Located at the West end of Avenue 58, in La Quinta, and sporting magnificent interior landscape and spectacular views, the Quarry is the deserts only top 100 private golf courses.  HOA is $567/month.  There are currently 2 homes for sale priced at 3.9 mil and 6.5 mil.  and 2 closed sales over the past 6 months, priced at 3.9 mil and 5.6 mil.  Membership is available through the club.

3.  The Hideaway:  Known as the “social one” amongst the Eastern Coachella Valley golf course communities, the Hideaway is fun!  Located off of Jefferson st. just past Avenue 52, the Hideaway has an HOA of $800/month, and membership is available through the club.  There are currently 12 homes available at the club ranging in price from $2,475,000 to 6.5 million.  Three homes are currently in escrow ranging from 4.1 mil to 6.2 mil, and seven homes have closed over the past 6 months with prices ranging from 2 mil to 8.7 million.

I represent buyers and sellers from one end of the Coachella Valley to the other.  If you have a property you want to know the current value of, or are thinking of buying a desert property, give Kim a call at 760-285-3578!

Looking for a GOOD Coachella Valley Realtor?

What do clients want in their Realtor??  OK, let’s clarify here that EVERY agent is a unique individual and EVERY client is a singularly unique human being (or group of humans!)  That being said, after 22 years in this business here in the Coachella Valley, there are some things that nearly all of my clients want from me as their agent.  If you are looking to buy or sell your home, land, or equestrian farm in any of the 9 Coachella Valley cities, give local resident and agent, Kim Kelly a call at 760-285-3578.

5 Things Clients ALL  need in their Realtor!

1.  Where are  you???  I cannot tell you how many times a person became my client simply because I was the only Realtor that returned their phone call!  What??  Every single person looking for property needs a responsive Realtor.
2. Communicative:  I sure wish my fellow realtors would return MY calls or inquiries.  Good grief.  Just shoot your clients an update..even if all you have to say, text or email is “Nothing new, but don’t worry, I’m on it!  I’ll let you know as soon as I hear from the seller.”
3. Know the Inventory:  This was the very first thing my mentor told me when I switched from New Home Sales into Resales.  We cannot know every single home, but we can certainly know the general inventory of a specific property type in a specific valley location.
4. What is the correct offer price?   It’s my job as your representative to do the research in regards to the property you are interested in, but also in regards to what has sold that is a GOOD comp for that property.  Every offer is not only about the offer price, but also about the terms.  Each seller may have a very specific reason for selling, and that will influence the terms that best suit them.
5. Understand the steps of a purchase or sale:  My clients have not done the hundreds of deals over my many years that I have.  Each deal is different, each situation is different, so knowing local lenders, appraisers, survey companies, inspectors, county contacts, city contacts.  These are the connections you make by experience, and there is no substitute!
6. Take a tour of this amazing 77 acre farm in Vista Santa Rosa.     

Our popular Coachella Valley real estate market is slower in 2023.

Coachella Valley Housing Market Report:  The housing market report for October for our Coachella Valley cities has just been released.  It is through October, 2023 and encompasses all the Coachella Valley cities.  Basically, yes, sales have slowed.  Sales fell to 34.7% below normal by January of 2023, and then began to improve, about 5% by October, 2023.  It is believed that this is due to higher interest rates and also digesting the excess demand that was created by low rates during COVID  You can check out the entire Housing Report here.

SUMMARY OF THE HOUSING REPORT

PRICES: The median price of a detached home in the Coachella Valley ended October at $642,450, up slightly for the month but down 2.7% year over year. The price decline over the last five months has been primarily seasonal. The median attached price in the Valley was effectively unchanged last month at $435,000 and is now down 4.4% year over year. Year over year price changes for detached homes ranged from an increase of 11% in Bermuda Dunes to a decline of 9% in the city of Coachella. Six cities have gains for their attached homes – Indian Wells, Rancho Mirage, La Quinta, Bermuda Dunes, Cathedral City and Indio.

SALES: Sales continue to decline. The three-month average of sales was 513 units in October, which is 53 units less than last year. The 12-month average of sales, which takes out seasonality, shows sales are averaging 599 units a month. This is 25% below last year. The city with the largest percentage increase is Rancho Mirage, with sales up 17%. The cities with the largest declines are Indio and La Quinta, with sales down 20% each.

INVENTORY & “MONTHS OF SALES” RATIOS: In October, Valley inventory increased 348 units and by November 1st it stood at 2,110 units. While most of this increase is seasonal, we’re struck by the size of the gain, which is larger than most increases in October. The Valley’s “months of sales” ratio was 3.5 months, which is up .5 months from last month and one month more than last year. This fundamental ratio measures supply and demand and, at 3.5 months, is at a level that is somewhat normal.

DIM: The median selling time in the region is relatively stable. At the end of October, the median number of “days in the market” in the Coachella Valley was 37 days, which is one day less than last month and two days more than last year. The city of Coachella continues to have the lowest median selling time for detached homes at 27 days, followed by Palm Springs at 32 days and Cathedral City at 35 days. In the attached market, Desert Hot Springs continues to have the shortest average selling time at 28 days, followed by Palm Springs at 33 days.

PRICE DISCOUNTS/PREMIUMS: In October, 16.5% of sales sold above list price, compared to 21.7% a year ago. Every city continues to average a selling discount for detached homes, which range from .7% in the City of Coachella to 4.1% in Bermuda Dunes. Discounts for attached homes range from 1.6% in Palm Springs to 3.3% in La Quinta. We continue to expect the percent of homes selling at a premium to remain around current levels as we move into fall and winter and inventory grows.

(The Desert Housing Report October 2023 Produced for Valley agents through the sponsorship and cooperation of GPSR and CDAR by Market Watch LLC ©2022 CDAR & GPSR. All rights reserved. Use and distribution by members only. The Desert Housing Report)

This Coachella Valley 2 acre property has a 6400 sf warehouse.

The Housing market continues to be strong!  Our local desert housing market for the Coachella Valley continues to remain steady.  Our prices for residential properties is a little lower than last year. A home with a good orientation within it’s community, nice floorplan and in good shape will still sell, BUT it is harder for a buyer to qualify for a loan.  That means that your home may sit a bit longer than last year.  It’s important for sellers to be realistic with their pricing, and open to negotiating with buyers.  Vacant land continues to sell and the price/acre has crept up from last year.  We are still a valley of good land values, and well kept properties, whether they are residential, vacant land parcels, commercial investments or equestrian properties will sell!  If you are looking to buy or list your Coachella Valley property, give local realtor, Kim Kelly a call for a complimentary property consultation at 760-285-3578.

5 reasons there will be no housing market crash (MSN reports)

1. Coachella Valley inventories are still very low.  In all communities and including land/equestrian properties, there just isn’t a deluge of inventory in any area.  We will see the for sale inventory climb as we approach the 2024 season, but it will still be low.  This lack of inventory tends to counter the increased mortgage interest rates and keep sales prices pretty steady.
2.  Home Builders just have not built enough inventory to meet the buyer demand.  Our Coachella Valley cities have some new inventory to offer, but there still are not enough homes to meet the demand.
3. Demographic trends:  The pandemic created more home buyers in areas they hadn’t originally planned to move to!  The rise of working from home has driven a certain group to purchase, millenials are a huge group coming into their buying years and the Hispanic population as a whole are keen on homeownership.
4. Lending standards remain strict:  This is fantastic.  We don’t have Liar Loans like we did in 2005-07, no low or zero doc loans and zero down loans.  Buyers now have to have stated income, good credit scores (650 or higher), and come in with the standard 20% down for the most part.  If lending standards loosen, this could change.
5. Finally…good news here..Foreclosure activity is low.  After 2007, when foreclosures were flooding the market and depressing prices, there was no way to stop the crash.  That’s not the case now.  Most homeowners have equity in their homes, lenders aren’t filing default notices, and foreclosures are out there, but not many of them.

As the Coachella Valley season gets closer, look for new listings in all types of properties.  The one here is a 2 acre property in Thermal, very near the Thermal Race Club, HITS showgrounds, golf and lots of other east valley amenities, yet very private.  Offered for the season at $1,332,000, you get a mid century modern pool home + a 6400 sf permitted warehouse with a multitude of uses.  Take the tour here..

Market update for real estate; Coachella valley real estate.

Coachella Valley real estate market update.  Time for your market update regarding real estate here in the Coachella Valley.  Actually, these updates are in regards to real estate in general.  As we all know, loan rates have continued to increase.  The increasing rates continue to dampen sales and refinancing, which tends to decrease housing starts.  I represent land, farms and residential sales, acquisitions and investment opportunities.  If you are looking to buy, sell or just want a free consultation as to the value of your property, give Kim Kelly a call at 760-285-3578.

REAL ESTATE MARKET UPDATE

• Residential construction spending increased .6% in August.
• Private sector spending for single family homes rose 1.7%.  Climbing interest rates led to a 6% drop in mortgage applications last week.
• Apps fell to the lowest level since 1996!  Lenders denied loan applications due to “insignificant income” more often last year than any time since 2018.

THE ECONOMY IN GENERAL

• The number of job openings jumped unexpectedly in August.  Labor market strength seems to continue despite Fed rate hikes
• Manufacturing data improved for the 3rd straight month in September.  Is the worst over for this sector?
• But…the services sector slowed in September, as new orders fell to a 9 month low.  But..the pace was consistent with solid economic growth.

(The above information is courtesy of Walter Neil with Franklin Loans right here in the Coachella Valley.)

Take this tour of one of the most fabulous remaining large parcels of land in the Coachella Valley.  Currently an equestrian layup facility, the seller will let it go for $125,000/acre, so for 77.8 acres the total sale price would be $9,250,000.  This is the last remaining large parcel of land in a key area of our coachella valley..located on Avenue 53, just West of Monroe St.  Take the tour of this amazing farm below..

20291 Ford Ave., Sky Valley, CA is for sale!

JUST SOLD:  20 acre farm in Thermal.  The Eastern Coachella Valley is on fire!  With all the negativity from the media about housing, the high interest rates, no inventory..blah, blah, blah.  Here’s the thing..all true!  But..whenever things are slow in one part of the industry, seems there is always a part of the real estate market that is doing well.  Here in the Coachella Valley, it’s the extreme high end of luxury sales, and it’s also land and farms and estate properties that are selling well.  If you are looking to buy or sell in the Coachella Valley, give me, Kim Kelly a call at 760-285-3578.

I’ve lived in the Coachella Valley for 40 years.  Coachella, Thermal, and cities even further East in the Coachella Valley are coming into their own.  Smart development choices, low density housing choices and mixing rural communities with smart housing developments are drawing people to the Eastern end of our valley.  Thermal consists of approximately 17,000 acres, and is home to date production farms, equestrian developments including the HITS show, Jacqueline Cochran airport, and the enormously popular Thermal Car Club.  The 20 acre farm just sold is just over the sound barrier from the car races.  The new owner is a car competitor, and he bought himself a smashing farm where he can keep his cars, land the helicopter, host parties, build an estate, or build large garages to work on the cars!  I have more! Take a tour of this farm located at 85501 61st avenue, Thermal.  $1,850,000.