La Quinta's property values have increased..
Our Palm Springs Valley is rising it’s real estate value head..good for everyone living here or owning here. Buyers still get great value, but their selection is not as great and the price/sf has inched up a bit. It has become a very competitive Buyers’ market in La Quinta, California.
The Valley’s median home price, (half sold for more, half for less) was $210,000 in March. UP from $195,000 in February..a substantial increase. More luxury homes are being sold which pulls the median up. Across the entire valley, approx. 1,152 homes sold in March, a 3.3% increase from March of 2011. The big indicator? New Homes actually started selling! Approx. 60 new homes closed in March of 2012..that’s fantastic!
La Quinta Sales Statistics for March, 2012:
Total Sales: 166 Change from 2011 was up 19.4%!
Median price: $322,500 Change from 2011 was up 13.2%!
Highest priced Sale: $3,300,000 Median price/sf is up about 6% to $155/sf
If you are thinking of purchasing a vacation home or even moving up to a larger, or smaller, or newer property..2012 may be the year to actually do it! I am seeing a significant reduction of choices in all price points. Multiple offers are becoming the norm, so don’t try to “lowball” the Seller. Offer fair market value and make your offer clean and easy for the Seller. You’ll have a much better chance of success!
More
We hadn’t had the chance to check out the Cliffhouse in La Quinta, perched on historic Point Happy, since it was recently taken over by Pacifica, the fabulous seafood restaurant and bar at The Gardens in Palm Desert. Pacifica is a class act and I could only imagine that the Cliffhouse would benefit by its new management. I had heard that the valet parking is a little dicey . . . and I must admit that I experienced that firsthand on Saturday. The energy of the valet team is a little aggressive and not welcoming – as they seem to cater to those driving Ferraris as opposed to regular “middle class” cars. BUT, once we climbed the stairs that meander next to the rock boulders and refreshing waterfall, we had regained our sense of good spirit and were delighted with what was to follow.
The Cliffhouse has a comfortable and earthy ambiance, that of a historic ranch house, offering magnificent mountain views from the indoor bar and dining area, an outdoor dining alcove carved into the adjacent granite mountain- complete with a flowing waterfall and a massive stone fireplace.
We met our friends at the Cactus Grill indoors and the atmosphere was festive and upbeat. The bar menu bears resemblance to the old Cliffhouse one, with a few subtle changes here and there. It feels a little more upscale, but prices are still affordable. The service was good, the Pinot Grigio I selected from the Happy Hour list was delightful and my simple order of a Wedge salad was executed perfectly. It was served at room temperature and everything was sumptuous and fresh. My friends offered up tastings of their French Fries and the yummy dishes they had ordered. We were all pleased as punch and very happy with our “new” Cliffhouse experience.
Hopefully, the valet parking situation will be resolved over time – there is no more park your own car, you must valet park. I have no beef with that, but the parking dudes could stand to take some lessons in customer service and proper valet etiquette. I won’t let that stop me from returning to the Cliffhouse for another delightful repast . . . and the sooner the better.
Living in La Quinta just keeps getting better and better !
More
With home prices still falling in La Quinta and across America, could the housing market really be healing? That’s what two of the major U.S. banks say – Wells Fargo and Chase. Their earning reports disclosed that more Americans are taking out loans, paying them on time and taking advantage of low interest rates to refinance.
Chase, the biggest bank in the U.S., says that their income from new home loans made from January through March is record-breaking. They issued 6% more loans than this time last year and received 33% more applications.
At Wells Fargo, the bank issuing the most home loans, booked the most mortgage fees since 2009 and issued 54% more mortgages than a year ago . . . and took in 84% more applications.
As manufacturing and consumer spending have held their own or grown, the housing market has been the biggest drag on our nation’s economic recovery. Home prices are still falling, but have slowed down in the past serveral years and more than half a million American homes were in the foreclosure process at the end of March.
Yet, the stronger mortgage business reported by Chase and Wells Fargo helped to surpass Wall Street’s expectations for first-quarter earnings. Signs are encouraging and it’s a wait-and-see process as the year 2012 unfolds.
More
The number of La Quinta homes and homes across the country that received first-time foreclosure notices rose 7% in March from the previous month, marking the third consecutive monthly increase this year. This increase reflects the heightened efforts of banks in taking action against homeowners who are behind with their mortgage payments.
Some real estate experts are pointing out that we have not seen the last of rising foreclosures and that there will be many more to come down the pipeline. Foreclosure activity slowed down markedly in the fall of 2010 – that’s when claims began to surface regarding banks and mortgage servicers processing foreclosures without properly verifying documents. Since then, a $25 billion settlement was reached in February between the largest U.S. mortgage lenders and state officials. This paved the way for banks to now take action on unpaid mortgages, some of which have been hanging in limbo for months and years. These are the homes that may be looking at being foreclosed and eventually ending up back on the market.
Typically, foreclosures sell at a discounted price compared to other homes and these sales can drag down the value of neighboring properties . . . meaning that it could now take even longer for home prices in certain markets to gain value.
Some experts are saying that it’s likely that the new crop of foreclosures will arrive in smaller waves throughout the year rather than all at one time. The sad part is that even more Americans will be losing their homes, never good.
More
Most everywhere across the country, and in La Quinta too, all you have to do is look in the local paper at the ‘For Rent’ section of the Classifieds to see that the rent prices are climbing. At the same time, home prices are either still declining or remain at a relative low. This is enough to get some reluctant home buyers into the game and ready to take the plunge into home ownership and the current spring selling season is reflecting this trend.
Other factors contributing to the increased buying activity – sales made by investors and second-home purchasers . . . but, realtors are saying that they are hearing complaints from people who are currently renting about the rise in rental prices. Experts are saying that due to the rising rents (avg. apartment rents rose by 2.7% last year) coupled with stagnant or falling home prices and available low interest rates, demand for entry level homes is on the rise. They also believe that 2012 will be the first year since 2005 that the percentage of apartment renters moving out to buy a home will increase from the previous year.
Some housing analysts say that historically, the cost to rent an apartment has been about 10% lower than the after tax cost of owning a home. That discount began falling in 2010 and last year disappeared entirely. By the end of last year, it was found that the cost to rent an apartment was about 15% higher than the cost to own a home – showing that conditions are “overwhelming” in favor of buying now.
But not all markets have been seeing the same trend – for instance, in Orange County and NYC, where home prices are extremely high, it is still cheaper to rent. But even NY realtors say sales of small studio and one-bedroom apartments are brisk because renters don’t want to pay such high amounts to rent – so may as well own.
Spring home sales are bustling . . . and the question remains, To Buy or Not to Buy . . . stay tuned !!!
More
Well, it’s called fearlessness . . . ‘the quality of mind enabling one to face danger or hardship resolutely.’ That is the dictionary’s definition and that pretty much sums up what my friend Kim Kelly is all about. This is a guest blog and I am writing about Kimberley Joy Kelly – realtor for HK Lane Real Estate in La Quinta AND longtime pro on the polo circuit and trainer of polo ponies.
In this month’s issue (April) of Palm Springs Life, there is an excellent article entitled “Chicks With Sticks,” spotlighting Kim and another local female equestrian and their careers in the male dominated sport of polo. I can’t talk intelligently about the game of polo, as I haven’t spent a lot of time around horses and have only observed the game as a spectator. All I know is that from knowing Kim personally, the fearlessness she displays in her facility as a polo player, a game with obvious risks and dangers, is the same fearlessness she displays when running her real estate business. No challenge is insurmountable to her, short sales don’t daunt her in the least (she’s had five years of experience in short sales with an excellent track record – and she knows how to deal with the banks !!! nuff said). She amazes me, her level of commitment and focus to whatever she puts her sights on.
I know what I’m talking about because I speak from personal experience – Kim represented me and my fiance when we bought our home last year. She was on top of everything, making sure we got the best price and that the confusing whirlwind of escrow, loan procurement, etc. went as easily and smoothly as possible. She took amazing care of us, treating us every bit as well as she treats her horses. And that’s saying something, because she LOVES her horses and intuitively knows and responds to their needs.
Okay, here’s your answer to the question “What does a polo player and a real estate agent have in common?” And the answer is . . . Kimberley Joy Kelly.
More
When it comes to sleeping during the music festival..watch out! Any idea is a good idea. Everyone’s renting out their homes or their bedrooms, or whatever they can come up with. Then there are the temporary accomadations right at the fields! These “sleeping tipis” are all the rage. Rows and rows of white tipis with colorful extra large tipis for the Executives. Check it out…
coachella music festival sleeping tipis
Luxury sleeping at the Coachella Music Festival
Thermal is the site for future development of a high end country club and racetrack for wealthy car lovers. What a score for this Desert community located on the east end of the Palm Springs Valley !!! Developers planned to break ground today on this exciting project that’s been in the making for years.
Coined as the “Rich Man’s Playground,” the Thermal Club’s developers claim they will succeed because there just aren’t many other places like this in the entire world – even though economic times are tough around the globe. A project of this type is not a new idea in our desert, there has been talk of building something like it here since the late 1980s.
The race course has been in the design stages for the past two years by Alan Wilson, a well-known track designer out of Salt Lake City. It will feature 3 independent circuits with the flexibility of running 19 different configurations.
Discovery Land Company is the Scottsdale based development company which is handling development, sales and operations at the club. They also developed The Madison Club and The Hideaway luxury country clubs in La Quinta. Memberships to the non-equity private club start at $85,000, corporate memberships of $200,000 include up to 4 designees. Club members must purchase lots starting at $200,000.
Approximately 40 people have joined the Thermal Club so far, most of them having homes in the Palm Springs Valley, Los Angeles, Orange County and San Diego. Some members are from Texas, New York and Montana.
The Thermal Club project is expected to generate hundreds of jobs locally in construction, with about 60 permanent positions. What a boon for our desert here and for the city of Thermal !!! It will be exciting to see how this project develops !!!
More
Cities have Birthdays too !!! Happy Birthday, La Quinta !!!
This beautiful springtime month will bring celebration of the City of La Quinta’s 30 years of incorporation. For being such a relatively “young” city, La Quinta is surely rich with culture and its own unique history.
La Quinta invites everyone to join in as they celebrate this special occasion during their annual City Picnic & Birthday Party which is taking place on Saturday, April 28.
The party starts at 10am at the Fritz Burns Park, corner of Calle Sinaloa (Ave. 52) and Avenida Bermudas. It will be a fun family event with lots of entertainment – activities for children, hot dogs, muffins, cold drinks and giveaways !!! You won’t want to miss it . . . and it’s FREE !!!
Don’t miss La Quinta’s Birthday bash, put it on your calendar now !!! For more info, call 760-777-7090 or visit www.la-quinta.org/communityservices
More
Last week was the first week that I received this comment from potential La Quinta home buyers..not once, but twice. Is that ubiquitous bottom, behind us?
I have no way to know for sure if we are at the bottom..in any price point. If you run into a Realtor that swears they DO know..I would suggest running. We Realtors are out in the streets daily, looking at homes, studying the inventory of available homes, looking at numbers of foreclosures that may be coming down the pike. We do have a better feel for the “bottom” than the average bear, but we do NOT have a crystal ball that predicts the future. So..are we at the bottom?
In many developments in La Quinta, Indian Wells, Rancho Mirage and Palm Desert..as well as Palm Springs proper, it appears we may be. Why? There are more Buyers looking for the same properties than there are those properties. What is everyone looking for in the desert?
- Sun orientation. South means more hours of sun. West is setting sun.
- Views. We have a unique situation in that we are a desert with mountain ranges and Buyers want to see them!
- Lot size. Large or small, Buyers want something in particular
- Water? Many Buyers demand water views or proximity
- Fairway location: HUGE here in the desert.
So..as you can surmise. If you are a buyer looking for a home with 3 of the 5 criteria above, your Inventory is very limited..no matter the price point. However, there are plenty of homes WITH the above mentioned criteria. They just are no longer only selling if they are short sales or foreclosures. Equity homes (standard sales) are now becoming more and more normal.
Buyers are still demanding a good value, just not a “steal.” The Steals are now much fewer and further in between. But, hey, look at it this way. Now you KNOW you are buying into a desirable area, right? There is nothing more comforting when you buy ANYTHING than knowing that lots of other Buyers desire exactly the same thing. Value is rising.
Views, location, sun..Buyers are paying for these!
