PGA West custom home: $1,595,000
Luxury Home Sales for the City of La Quinta have continued to increase over the past 6 months. Luxury Home sales are homes sold for $1,000,000 +.
Luxury Home Sales by Month:
July, 2011: A total of 3 homes sold with 5 homes pending
August, 2011: A total of 7 homes sold and 7 homes pending
September, 2011: A total of 3 homes sold with 5 homes pending
October, 2011: A total of 6 homes sold and 6 homes pending
November, 2011: A total of 13 homes sold with 8 homes pending (Nice jump!)
December, 2011: A total of 9 homes sold and 8 homes pending
From July, 2011 to December 2011, there was a 200% increase in total number of Luxury homes SOLD. The Average SOLD price decreased by approximately 11% over the same 6 month period. Average days on the market has come way down too. In July, these homes were taking approx. 266 days to move, but by December, it was only 187 days. So..prices have come down a bit, homes don’t sit as long, and sales have gone up!
Interesting note: The price/sf has increased pretty steadily. In July, it was $467/sf, dropped to $328/sf in November of 2011, but by December, the average price/sf was back at $439.
La Quinta’s Luxury Homes are definately having a shorter shelf life. If you’re thinking about that luxury home, it might be a good time to get out and take a look at the Inventory in La Quinta.
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Outstanding Views bring buyers to Palm Springs area
I have noticed home prices stabilizing in most price points during the past year. It appears this is going to continue through 2012. The really good news? The Builders are back! New Home Sales is where I spent the first 5 years of my real estate career..2000-2005. I sold new homes for Medallist Golf Developments in La Quinta at Norman Estates in PGA West. In that particular development of 58 semi-custom homes, the demand is back. Will prices go back to 2006?? Of course not..at least not for many years if then. But..the Short Sales and Foreclosures in this neighborhood of $850,000 – $1.3 mil homes are about done. There may be one or two more, but the price/sf has been set and there are more Buyers than properties.
New Home developments have stood still for about 3 years now..Sun City in Palm Desert and also Shadow Hills, Indio were still building one or two new homes and Trilogy (all 55+ communities), continued to build slowly. Over the past 3 months, I am now seeing grand openings again! The best thing is that these “new” developments are really just continuations of developments that had been put on hold. Again..great for our Palm Springs Valley. Finish these abandoned or “stopped” projects..really helps a neighborhood.
Palm Springs New Home Builders are getting their mojo back!
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Former Model home; Whitehawk
Whitehawk in Palm Desert, California is a small, private, gated community in East Palm Desert. Located off of Country Club Dr., the 10 Fwy overpass is about 5 minutes away, shopping is across the street and also around the corner on Washington St. HOA’s are only $110/month.
This Short Sale, (Listing #21446840), is unbelievable..$100/sf for this former model home with all the upgrades, bells and whistles. Built in 1996, the home has 4bd/4ba with lovely outdoor porches and splash pool. Beautifully maintained, the Seller is current on HOA’s and keeps home in perfect condition.
Bank of America has the note on this one, and there is also a HELOC with them as the 2nd. The HELOC has already been approved..just need an offer to push back the Sale Date and get this Short Sale it’s final approval!
This home is approx. 2900 sf and priced at $289,900..just $100/sf. Seller’s loss is your gain. Great investment opportunity as would be a great year round lease.
The Neighborhood of Whitehawk..
Furnishings available outside of Escrow..hurry..bring offer!!!
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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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