Since about the middle of 2011, I have been seeing a small but steady uptick in local prices. The bottom price point of $250,000 and under is saturated with Buyers. Investors and also first time home buyers. The numbers of foreclosures and Short Sales have dropped significantly. This trend will most like go through 2012 with the price/sf increasing a small amount.
Then there is the $500-$800,000 market. Again..I’m seeing lots of buyers. Sellers have priced their homes much more aggressively and they are moving. There is still room to negotiate here, but less inventory than a year ago.
Luxury hoemes are the hot market. The price/sf has dropped over 30% and in some developments as much as 50% from the peak market of 2006. Investors in this price point have increased and I expect this market to continue to see investors and home buyer numbers continue to rise through 2012.
Palm Springs Valley Real Estate Economic Summit Update:
This is great news for those of us that live here year round. It is also an indicator that it might be time for those of you looking to invest or own in our beautiful winter, resort valley to make that offer!
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If the Banks won’t do it, private investors will! Investors from Canada are coming to the desert in droves, picking up Short Sales or Foreclosures and leasing them..I have several Buyers from both Vancouver and also Calgary that are doing just that. They are also buying homes to live in themselves in our desert paradise, but rentals are a great return on your money. Especially when you buy them for much less than it would cost to replace them..as our housing market is right now.
This investment group is made up of Canadians mostly, but I suspect there are plenty of American Investors in it also..
The La Quinta and Palm Springs area real estate markets in general are on fire..not like the craziness of the 2004-2006 years. This is a reasonable, controlled burn. Houses are being purchased, leased, or lived in with the sane expectations that in 5-10 years, there will be resale profits. Of course, there ARE contractors and groups purchasing “fixers” and re-selling them when done..that is very popular here.
If you don’t live here, probably not best to purchase “flippers”..pretty risky over-seeing your help. Cosmetic fixers..sure. Buy low, lease at a good return/month, and plan to sell at a comfortable profit down the road..
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Palm Springs Valley, saw an overall drop of 13% in the numbers of Foreclosures (month of December). That’s good news, but may be due to several things which could change.
1. There was a moratorium in place for the Holidays. That will end.
2. Loan Mods are being processed much more efficiently. That should continue to keep numbers down.
3. Short Sales are being processed and CLOSED much quicker. Again..should help keep numbers down.
December Foreclosure numbers in our Valley by City: (Realty Inc. source)
La Quinta: 121 total Drop of a huge 30%
Indian Wells: 11 total Drop of 8%
Rancho Mirage: 66 total. Drop of 3%
Palm Desert: 138 total Drop of approx. 15%
Palm Springs: Total of 180 Drop of approx. 23%
Thermal: 37 total Increase of 37%
Coachella Valley Total: 984 Drop of 13% on average.
On the streets every day as I am (in real estate of course!), I am witnessing a ton of buyers. I am being outbid on offers that would have flown through just a year ago. The First time home buyers are now surpassing the Investors in what they will pay/sf and also because they have cash, and loans are available again. Good news for La Quinta and the Palm Springs Valley!
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