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.