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Market Update

May 8, 2019

1st Quarter 2019 Market Update Year over Year

Hello Valued Friends and Clients,

The Coachella Valley is not only an amazing place to live, real estate is a bargain compared to any other cities our Desert dwellers come from; San Diego, Orange County, Los Angeles, San Francisco, Portland, Bend and Seattle areas, Prices are 3-4-5 times higher than our desert area bargains. The Desert remains a steal!

For Dave Kibbey & Associates, it’s been a very busy 1st Quarter with 28-homes Pending & Sold totaling $24 Million in Sales. While the market has continued to remain strong in most price segments, many luxury listings continue to sit unsold, which suggests some may be priced too high. This is not uncommon when we start seeing price reductions in all price segments, some significant in higher price segments. (This report specifically covers the areas of my expertise; Rancho Mirage, Palm Desert, Indian Wells and La Quinta)

MARKET- We continue to experience a strong economy and market.  Surprisingly, we are now running 11-years into another traditional 7-10-year historic real estate cycle. Knowing this and the fact that High Season is almost over, many sellers are highly motivated to get their homes sold. As previously mentioned, we are starting to see more price reductions than we did last year at this time, mainly above the $500,000 price segment, a typical sign that the market may be losing some steam. While sales have remained strong, new and newer home sales are HOT and typically sell faster than older homes, excluding true Mid-Century Modern homes, which tend to sell fast and at a considerably higher price per SF than other homes. For example, Toscana CC, Indian Wells’ newest luxury home community, has experienced record sales numbers the past two years. Because of this, older communities for example – Indian Wells CC, both sales and in some cases, values, have dropped because of the draw toward a newer adjacent community. Once Toscana CC is built out, Indian Wells CC will very likely start seeing a bigger draw and will eventually see values come back. On another note, Eight out of every ten luxury homes sold today are Contemporary-Modern “A less is more look and minimalist design,” with less compartmentalization for simple living, ultimately causing older traditional homes to sell slower, and many times for considerably less price per square-foot. Architectural designs are a matter of preference and all homes will eventually sell. Styles come and go, so if you love Mediterranean or Spanish Design instead of Contemporary or Modern, embrace the warmth of these designs and take advantage of these times. The getting is GOOD!

What’s ahead? Over the past two years, summer sales have been strong in the lower price segments, with sales numbers exceeding high season in some segments. This does not hold true in the Luxury Home Market as luxury home buyers typically have two or more homes and they leave the Desert when it gets hot and do not come back until the Fall. It’s not a good idea to leave a Luxury Listing sitting on the market unsold throughout the summer. What will happen with the market in the coming months/years? That’s the “64 Thousand Dollar” question. History is usually a good indicator. One thing we do know, history repeats itself and markets are cyclical. With a strong economy, the wave we’ve been riding may “hang in there” for a while longer. My advice: If you’ve been thinking about selling and it’s important to you to net the most you can, you should seriously consider listing your property sooner than later. If not, enjoy every moment of your desert lifestyle living and reach out to us when you’re ready. Our objective is to help our clients reach their goal, no matter what, no matter when.

 

INVENTORY and how it effects the market-

It is easiest to understand Months of Inventory based on Closed Sales. This helps you understand how long it can take to sell your home based on both the number of Active-Listings and how this number is affected, based on how many homes are selling in this price segment. (see below)

Months of Inventory based on Closed Sales:

Under $500,000               There is a 3-Month Inventory of Homes on par with last Year

$500-$1M range               There is a 5.5-Month Inventory of Homes, down from 5.6-month Year over Year

$1M-$1.5M range             There is a 7-Month Inventory of Homes, down from 8-Month Year over Year

$1.5M & Up                        There is a 15.1-Month Inventory of Homes, up from 13.9-month Year over Year

Average Listing Price to Sold Price %:

Under $500,000                 Sold @ 94% of Listing Price on par with last Year

$500-$1M range                 Sold @ 94% of Listing Price on par with last Year

$500-$1M range                 Sold @ 91% of Listing Price, 90% last Year

$1.5M & Up                          Sold @ 92% of Listing Price, 90% last Year

Average Active Listing Price:

Under $500,000                 $361,000 up slightly Year over Year $352,000

$500-$1M range                 $711,000 on par with last Year

$500-$1M range                 $1,249,000 down slightly Year over Year $1,253,000

$1.5M & Up                          $3,243,000 down Year over Year $3,473,000

 

Featured NEW Listings: We have some of the BEST listings in the desert

49832 Desert Vista Drive, Palm Desert $2,398,900 | Ironwood CC

18 Jill Terrace, Rancho Mirage $2,248,900 | La Residence

6 Dominion Court, Rancho Mirage $1,398,900 | Dominion

910 Island Drive #313, Rancho Mirage $1,198,900 | Desert Island

74396 Chicory Street, Palm Desert $619,000 | South Palm Desert

In closing I’d like to give a “special thanks” to my amazing Team of Associates – Wendi Brinson, Todd Later, Nyla Patzner, Galina Tucker and Jack Menzia. The culture we share and service we offer, is nothing less than amazing. I like to refer to this synergy as a smooth-oiled-machine, offering only the highest level of care, service and professionalism to our clients.

Finally, a warm Thank You to our current and past Clients, we so appreciate and welcome the opportunity to serve you. I hope you find this information helpful. Please feel free to call or write with your thoughts, questions or comments. I welcome the opportunity to speak with you.

Best regards,

Dave Kibbey

January 1, 2019

2018 Year End Market Update

First, wishing you a Wonderful and Healthy New Year. For those friends we served, a big thanks to each one of you, for your trusting friendships. We have so much to be grateful for, and it is truly our pleasure here at Dave Kibbey & Associates to help you with your real estate needs. The Business is so gratifying to me, helping people achieve their goals, in many cases, if not their biggest goal… buying or selling their home and moving on to the next step in their lives, certainly an important financial decision where clients find it prudent to hire a specialist that understands the market and has a proven track record. Thank you again for the opportunity to provide you the highest professional services.

Twenty-Eighteen – In the four Cities of my expertise (Rancho Mirage – Palm Desert – Indian Wells – La Quinta) home sales numbers were strong, with almost every price segment in all four cities increasing in both the numbers of homes sold and median sales price, including the number of days to sell a home reduced. All price segments (in the above-mentioned Cities) except the $1.75M-$2M off just slightly, performed well. The largest jump in sales numbers was Palm Desert, in the $250K-$500K segment, from 893 homes in 2017 to 1015 homes in 2018. In addition, this the median sales price rose from $335,000 – $340,000. Palm Desert Luxury market sold 15 homes above $3M (9 homes in 2017) with an average sale price of $5.4M. Overall 229 more Palm Desert homes sold in 2018 than in 2017. Collectively, in all four Cities, sales were up 2.4%, Pending Sales up .7% and Inventory was down 8.2%, reflecting gradual healthy growth.

Savvy investors and economists have noticed that real estate booms and busts come in cycles. The real estate rise around the start of the new Millenia and the subsequent crash in 2008 was one example of this cycle. While a variety of other economic factors can slightly alter these cycles and exaggerate the intensity of the peaks or falls, these patterns help us forecast how long a real estate rise will last, and therefore, how long a Seller’s market lasts.

We are now 10 years into this cycle. In surrounding markets such as Orange County, Los Angeles and San Diego sales have slowed approximately 20% year over year. Currently as inventory levels rise, there is uncertainty as to how our Desert market will perform in 2019. This offers buyers more homes to choose from, in some cases slowing the buying process as buyers want to feel confident, they are buying right, and in some cases making sellers anxious and motivated; therefore, reducing their prices to get their homes sold.

I believe 2019 will be another great year. We are blessed to live in such a beautiful paradise, more and more people come to find each year. I am excited about this coming year and helping many more home buyers and sellers achieve their goals. We are proud to have an amazing inventory of some of the finest listings in prime locations throughout this beautiful Desert.  I hope you find my Market Updates helpful and informational. Please click here to view the market update chart and feel free to reach out to me with any thoughts or questions. We are here to serve you.

October 12, 2018

3rd Quarter 2018 Market Update

“What was, last season may not be the same, this season”

Twenty Eighteen has been a strong sales year and may be the best we’re going to see this real estate cycle. Of course, we are all hoping for another strong year, though some sellers’ expectations these days seem to be unrealistic for this stage in the market. We’ve seen a 9-year run up in the stock market and from what I can gauge, a 10-year run up in the real estate market. The economy is obviously strong, jobless rates the lowest we’ve seen in 49-years, people are spending, and numbers are very good both in the number of homes sold and well as sales prices. The BIG question is how long this bull market will continue. Based on history we expect to see some flattening out in the market soon.

My belief is, some sellers will likely have to lower their expectations as to what they will net, or stand a chance selling for less when the market flattens out. Remember, history repeats. Once we see flattening in the market, inventory will rise, and motivated sellers will reduce their prices to sell, adjusting values down. This is not negative talk, it is reality some people may not pay attention to. Those who do and price their homes right will net significant gains, those who don’t, oh well!

My advice to sellers today is to look at your home in the eyes of today’s buyer! Talk with experienced agents who can provide valuable data to help you make an informed real estate decision, not just talk you want to hear. Do your homework, study market trends, and comparable sales data before you make your decision. Ultimately, you will be happy you did.

Currently, we are very busy with taking and managing significant New Listings, presenting these fine properties and negotiating deals. Here at Dave Kibbey & Associates, our #1 goal is to help our clients achieve their goals. If that means some uncomfortable moments advising our clients on issues they’d prefer not hearing, we will do so anyway to keep it real and ultimately help them make the right decision.

Below you will find year over year 3rd quarter sales numbers and prices, which may surprise you. I hope you find this information helpful in consideration of the market as a buyer or seller. I welcome the opportunity talk and or meet with you, and help you make an informed real estate decision.

 

Let’s look at sales numbers and values year over year

“Rancho Mirage, Palm Desert, Indian Wells and La Quinta”

{Number of Sales indicated below as (*) }

 

$250K-$500K Price segment:        Palm Desert and La Quinta experienced gains in value and sales prices. Rancho Mirage and Indian Wells dropped slightly in sales numbers though Rancho Mirage was up in value slightly.  Indian Wells was down mainly due to their high median sales price of $730,000.

$500K-$750K Price Segment:       Rancho Mirage (54-62*) and Palm Desert (50-55*) experienced slight gains in both sales numbers and sales prices, both Indian Wells and La Quinta dropped slightly.

$750K – $1M Price Segment:        All four Cities experienced gains in sales numbers though sales prices dropped slightly, except for La Quinta with a slight gain in value.

$1M -$1.25M Price Segment:      Rancho Mirage (3-5*) experienced a gain in sales numbers and values, though Palm Desert, Indian Wells and La Quinta experienced slight declines. Not uncommon to see sales numbers slow in the summer month in higher price segments.

$1.25M – $1.5M Price segment: Palm Desert (1-2*), Indian Wells (0-4*) and La Quinta (3-5*) experienced slight gains in sales numbers, though all four of the cities experienced declines in sales price.

$1.5M – $1.75M Price Segment: Rancho Mirage (8-1*), Palm Desert (1-0*) and Indian Wells (4-1*) experienced declines in sales numbers, La Quinta was par (2-2*). Rancho Mirage and La Quinta experienced slight upside in sales price though Palm Desert and Indian Wells dropped slightly.

$1.75M – $2M Price Segment:     Rancho Mirage (0-2*), Indian Wells (3-4*), and La Quinta (3-4*) experience a rise in sales numbers and sales prices, though Palm Desert was par.

$2M – $2.5M Price Segment:       Palm Desert (1-2*), and La Quinta (2-4*) doubled prior year sales numbers, though sales prices dropped slightly, except Indian Wells with a slight gain.

$2.5M – $3M Price Segment:       Rancho Mirage (1-2*), Palm Desert (0-2*) and La Quinta( 1-3*) experienced a slight gain in sales numbers, both Rancho Mirage, Palm Desert  and Indian Wells also experienced slight gains in sales price.

$3M and up Price Segment:        Pretty quiet… Palm Desert (0-2*) and La Quinta (1-3*) experienced gains in sales numbers.

 

I hope you find my market updates informative and helpful. Please feel free to reach out to me with comments or questions. Whether now or in the future, I welcome the opportunity to talk with you and help you achieve your goal.

Best Regards,

Dave Kibbey

July 18, 2018

June 2018 Market Update

June gloom is here… NOT!  It is HOT outside, and so is the Market.

It is looking like we may hit an extraordinary Sales number of $60 Million Listed and Sold this fiscal year. About everything I have listed this Season under the $1M price segment has sold, as well as many of our luxury listings. Simply put… the market is HOT, and HOT properties priced right Sell. There appears to be some die-hard buyers out looking in this 110-120-degree heat, though as usual, as we get deeper into Summer season, things will slow as many of those buyers are buying year around homes in the median home price segment, where inventory is very low. Most sellers of luxury homes and estate properties will hold till the Fall to list, as buyers for these properties arrive then to find a home. Those that haven’t sold, are now pulling off the market into pocket listings for the Summer while sellers re-evaluate their position. I believe we may have another strong sales season 2018-2019 ahead of us, although it is hard to foresee any further ahead knowing we are now 10 years into 7-10-year historical cycle, we could very well see flattening in the market ahead.

I continue to field calls from prospects and have worked with quite a few affluent buyers who have experienced significant profits in their stock market portfolios and are converting some of their upside profits into a tangible real estate asset. Not a bad strategy, recognizing that the stock market run-up can decline significantly, due to inflationary risks and global uncertainty. The best thing about Real Estate, it doesn’t disappear overnight. You can buy a property in our Desert Paradise for relaxation, or a rental that creates passive income additionally offering a good write-off and hold that property into the next Real Estate cycle.

Even with the above-mentioned improvement in the Market, unlike the past, most sellers today are listening and strategically evaluating their options as to how and where they are allocating their capital. They are paying attention to the data and market trend information we provide them, along with my advice based on many years of experience, thus cognizant of not only the current Market, but also market cycles enabling them to make an informed decision. By doing so, they not only improve the odds of selling their luxury home or fine estate, ultimately selling the property at the highest price the market will bear.

To get an idea of your home value and when is the right time to sell, please do not hesitate to reach out to me. Let’s find out what is important to you and help you make an informed decision based on your needs. You can view year over year sales numbers by Month, Quarter, and Semi-Annual by reviewing the spreadsheets below.

I hope you find this information useful. I look forward to speaking with you whenever you are ready.

Please click here to view specific sales numbers and values, per City and Price Segment.

Have an enjoyable Summer!

May 23, 2018

April 2018 Market Update

I’m hoping you are enjoying this beautifully cool May as much as I am. Not sure if I can remember such a nice May in my lifetime of living in the desert.  As many snowbird’s head North, our desert weather remains comfortably nice with cool mornings and warm afternoons.

The market remains HOT with strong sales, with inventory down in most price segments. In just about every price segment, the amount of days it takes to sell a home has dropped, in some cases by 50%. As usual in the desert, the lower the price, the lower the inventory, the higher the price, the higher the inventory. Homes under the $1M price segment, inventory is thinning even as the we move toward Summer, as the market is flooded with qualified buyers. In the Luxury Home Market, many opportunities remain, as we continue to see multiple price reductions. Goes without saying, the higher the price segment, the less buyers in the marketplace, and discerned qualified buyers are willing to wait for the right buy.

Knowing this, year over year, the amount of homes sold Valley-wide this April exceeded last April numbers in most price segments, though interestingly median sales prices dropped slightly in various price segments in all four Cities (see attached spreadsheet). Indian Wells enjoyed the most gains (7 out of 10 price segments) in median sales price, and Palm Desert enjoyed the most gains (7 out of 10 price segments) in the numbers of homes sold, year over year.

Overall the market continues to improve, and buyer confidence remains high. Though mortgage rates are on the rise, compared to many years ago, rates remain historically low with many attractive loan packages available, from conforming loan amounts, up to multi-million loan packages. Moreover, investors continue to create attractive mortgages including minimal required documentation (stated) loans to keep affordability at bay. We continue to see a tremendous amount of cash buyers, who have leverage to negotiate luxury home purchases with immediate cash and fast closings. Thus far this Season, Dave Kibbey & Associates has generated strong sales numbers, and continue to maintain a wonderful selection of qualify listings in just about every price segment, from $350,000 up to multi-million-dollar estates. We currently have 10 properties In-Escrow, and 45 transaction sides Pending and Sold this season, many of which we have represented both buyer & seller, totaling just under $36 Million in sales thus far this season. It is looking like our sales numbers will approach $60 Million this fiscal year.

I hope you found this update useful. Please feel free to reach out to me with any questions, I welcome the opportunity to speak with you and help you achieve your real estate goals, now or in the future.

Please click here to view specific sales numbers and values, per City and Price segment.

April 12, 2018

Homes Are Made for Living… and our beautiful desert offers lifestyle living like none other. I cannot tell you how happy I am each day, to wake up in paradise, and help buyers and sellers achieve their goals. With almost 20 years’ experience in helping people with Real Estate and being fortunate enough to assemble the finest and most synergistic support team I could have dreamed of, our sales numbers this season thus far, are just under $30 Million Pending and Sold.  Thank you… Wendi Brinson, Nyla Patzner, Todd Later, and Jack Menzia for your professionalism, hard work, and focus in providing the best service to our clients. And finally, our affiliation with, the amazingly strong foundation and recognition Pacific Sotheby’s has earned, offering our clients without a doubt the Highest & Best level of Professional Associates, Networking and Referral possibilities, and Exposure – Locally, Regionally, Nationally, and Globally.

To all our loyal clients, Thank You!

As the old saying goes: With diligence, hope, trust, and patience, things work out for the better. As we approach from what I can see, the peak of another real estate cycle, our desert market continues to show volatility, though promise to most buyers and sellers. With rising mortgage rates, along with global uncertainty, I believe we will soon see leveling off in the market. Year over year, in the four Cities of my expertise; Rancho Mirage, Palm Desert, Indian Wells, and La Quinta, values continue to rise in many price segments, though we continue to see volatility in higher price segments, inventory continues to drop, both pending sales and homes sold are on the rise and we continue to experience an overall decline in the amount of days it takes to sell a home.

Most sellers today compared to the past couple of years are more amenable to pricing their home right, and some homes are selling very quickly. Pragmatic buyers continue to drive the market, with multiple counter offers to solidify a deal. The fact remains, serious sellers who study the market, price their homes within the limits of market reality. Sellers who want to test the market, had better have a super special home, or plan to sit patiently, and ultimately have a willingness to reevaluate what is important to them. Consider Professional Staging – Staging homes that are tired, and potentially difficult to sell, bring positive results. Sellers who are willing to think outside the box and invest in creating a fresh new palate to present to the market are enjoying a high level of success. Professional Staging is not inexpensive, and usually ranges from $10,000 – $25,000, although every time my sellers have agreed to clear out the old, and bring in the new look, it has paid for itself. For example, this month, two of my clients agreed to stage their homes, one spent $10,000 on a $1M Listing, and the other spent $17,000 on a $1.2M Listing, and both homes sold very close to asking price within the first week. This would not have happened without professional staging.

Back to the Market – March 2018, year over year numbers, Inventory, Pending Sales, and Sold

Rancho Mirage

March – Inventory is down this March 28.6% – 464 homes listed, down from 650 last March

March – Pending sales are down this March 18.9% – 79 homes In-Escrow now, 88 last March

March – Sold homes down 10.2% – 90 homes this year, 111 last March

Palm Desert: South-North-East

March – Inventory is down 24% – 692 homes listed, down from 911 last March

March – Pending sales are up 23.5% – 221 homes In-Escrow, 179 homes last March

March – Sold homes down this March 7% – 182 homes, 193 homes last March

Indian Wells

March – Inventory is down 15.6% – 244 homes listed, down from 289 homes last March

March – Pending sales are up 20.8% – 29 homes In-Escrow, 24 homes last March

March – Sold homes are up 2.9% – 35 homes, 34 homes last March

La Quinta

March – Inventory is down 13.7% – 790 homes listed, down from 915 homes last March

March – Pending sales are down 9.5% – 152 homes In-Escrow, 168 homes last March

March – Sold homes down this 7.7% – 167 homes, 181 homes last March

I hope you have found this market update informational and useful. Please feel free to reach out to me if you have any questions.

Please click here to view specific sales numbers and values, per City and Price segment.

February 16, 2018

January 2018 Market Update

Another magical January with beautiful desert weather, and as typical, people from all over the world are flocking to our moderate desert climate, a reprieve from freezing northern and eastern climates.  I just met with folks yesterday from Bend, Oregon, who have been to the desert three times, staying a week, then two weeks, then one month, and now they are ready to buy a home in the $800,000 range and enjoy 3-4-5 months annually. Being a desert native, and around the real estate business for 20+ years, I’ve seen this repeatedly. Our temperate desert climate is an easy and relaxed place to live.

Knowing the desert has been, and continues to be a resort destination, even with year round population growing, we lag San Diego, Los Angeles, Orange County, Portland, Seattle, and other west coast market sales numbers, and values, mainly because the valley is a mix of two independent buyers, the Owner-Occupied buyer market, and the Remote Owner buyer market, which is 53% of our market. According to Market Watch LLC in association with Housing Demographics Inc, the owner-occupied market continues strong because of higher wages, the declining seven-year foreclosure penalty and improving demographics, while the remote owner market continues to struggle because of high costs and low-price gains.

Here’s the forecast for 2018:

~An even stronger “owner occupied” Valley market than 2017, with a similar Remote Owner market

~Continued improvement in the Valley homeownership rate

~Higher US mortgage rates

~Extremely strong wage growth creating “wage push” inflation (Wage push inflation is a general increase in the cost of goods that is preceded by and results from an increase in wages. To maintain corporate profits after an increase in wages, employers must increase the prices they charge for the goods and services they provide)

~Less burdensome financial regulation = more home loans

~The detached home markets could again see gains of 4-7%, attached home markets could see 3-5%

Looking at Market Trend reports in my areas of expertise; Rancho Mirage, Palm Desert, Indian Wells, and La Quinta, daily, even with improved sales numbers and values in many segments, compared to homes Pending and Sold, Luxury home Inventory remains high. Based on what I see, many homes remain over-priced. Some sellers knowing, they do not have to sell, set their expectations too high… testing the market, and their homes are sitting unsold, with few lookers. From everything I can see, 2018 sales should be stronger than 2017, though sellers must be realistic with their expectations and remember, buyers know many homes are still available and are all looking for reasonable sellers. Sellers – Unless your home is a rare and amazing showplace, be reasonable with your expectations, price your home slightly ahead of the market, and you will sell your home and net fair market dollar. Price it to high, you’re likely going to sit unsold.
Under the $1M price segment, many price segments realized gains in both the number of homes sold, and values, some were par, and few had dropped. Over the $1M price segment, sales were much slower though some gained in values.

Look – If you want to sell, pay attention to the numbers, look at the trend in your area, price it right, and you will sell, it’s that easy. Currently it’s taking from 60 -120 days to sell your home, if you are priced right. You may even have to put love $$$ into the property to get it SOLD. Do not dial your home in, in preparation to sell, and feel you can raise your price $50-$100-$150K or more, as todays buyers won’t buy into that idea. Remember, rates are on the rise, buyers are smart, and there are still plenty of homes to look at. Do yourself a favor, price it ahead of the market, sell it with a smile and move on. If you are attached to the home, remember selling your home must be a business decision, think it out, call me with any questions or concerns so I can help you make an informed decision.

Enjoy this beautiful desert paradise we live in, and be sure to call me with any questions. I welcome the opportunity to help you achieve your goal.

Please click here to view Jan 2018 over Jan 2017 sales numbers.

January 18, 2018

2018 Likely to set 5-year Sales Record

Happy New Year!!!

I’m hoping you had a healthy and prosperous 2017, and best wishes to you throughout 2018.

People often ask me, how’s the market?

In a nutshell, the market continues to improve with lower inventory levels, and more homes selling. Over the past 12-months, Coachella Valley-wide inventory is down 21.5%, home sales are up 22.7%, and pending sales are up 12.8%.  This is the best we have experienced since the 2013-2014 recovery. As you review the attached spreadsheet, you will see that just about every area, and price segment experienced improvement in sales numbers, values, and less Days-on-Market, few were par. Dave Kibbey & Associates sales numbers increased by over $10 Million in 2017, plus we’re taking 2-5 listings per week, with 5 new properties in-escrow as I write this update. We are very busy showing our listings 7 days a week, and working with several buyers.  I estimate we will exceed $60 Million in sales this year due to our high-level of client commitment, professionalism, and marketing, along with improved market conditions.  We currently have $31 Million in Active Listings, with many more amazing condos, homes, and fine estate properties in the pipeline. The under $1M market has really tightened up, with lower levels of inventory, and more qualified buyers in the market-place. The luxury market has also heated up dramatically, though there are still lots of homes to choose from.  Contemporary/Modern homes are HOT and continue to rule, claiming 8 out of 10 luxury home sales. Of course, Mediterranean and Traditional homes continue to sell, though these homes are taking longer to sell and usually do not drive the high price per square foot, Contemporary and Modern’s are demanding.  Remember, you can log-on to Dave Kibbey & Associates real estate website: www.DesertEstateHomes.com, find Market-Updates, peruse your area, whether it be Rancho Mirage, Palm Desert, Indian Wells or La Quinta as well search for your area and price-segment. We have posted Sales Numbers, Average Days-On-Market, and Median Home Prices for all price segments in all the above-mentioned locations.

If you are thinking of buying or selling a home this year, I suggest a free consultation, so you can plan. Reach out to me today, I can help you make an informed decision as to when is the right time for you.

To view Year 2017 over Year 2016 sales figures, please click here.

Wishing you a wonderful 2018!

Best regards,

Dave Kibbey

November 17, 2017

 October 2017 Market Update

Looks like the perfect storm – Sales numbers are up, and inventory down in most every price segment!

Overall, the market continues to improve, with an increasing number of homes sold in a shorter period, in almost every price segment. The fact remains, many homeowners have had to lower their expectations, by reducing their price to get their home sold, as many set their expectations too high with the improving market, and ended up sitting unsold last season. As the market continues to improve, increased sales numbers should flush out inventory levels, minimize volatility, and soon see values raise overall. Moreover, the economy is growing stronger with positive Jobs Reports, along with the Stock Market seeing all-time high earnings, causing the Feds to reconsider QE (Quantitative Easing) which have held rates down. We will very likely see rising mortgage rates soon. I have spoken with quite a few prospects, that have seen substantial growth in their stock-market portfolio, now considering moving some of their growth into a more tangible real estate asset, all good news for the real estate market.

Read the Good news below… the number of homes sold in the 3rd Quarter 2017 outpaced 3rd Quarter 2016 sales in most price segments, with slightly lower inventory levels, some significant, and a larger pool of buyers pulling the trigger earlier this season. Over the past five years, many prospects were looking in the Fall, watching the market, and waiting until late Spring to pull the trigger, or simply holding off until they saw less volatility in the market. This November, we have 12-Properties in-Escrow, versus 4 Properties in-Escrow last November. Moreover, Dave Kibbey & Associates generated $35.5 Million in sales last year. This year-to-date, we’re at just under $43 Million in first 10+ Months of the year, and we may hit $50 Million in sales by end of year.

For the areas of my expertise (Rancho Mirage, Palm Desert, Indian Wells, and La Quinta), please find below sales breakdowns collectively, based on closed sales year over year:

Price segment $0 – $499,999:

Inventory down 34.8%                    1,286-Listings Nov 2016 down to 839-Listings Oct 2017                  Good

Sold Homes up 14.8%                     194-Homes Sold Oct 2017 up from 169-Homes Sold Nov 2016       Good

Pending Sales up 28.5%                 165-Pending Sales Nov 2016 up 212-Pending Sales in Oct 2017     Good

Price Segment: $500,000 – $999,000:

Inventory down 29.6%                    878-Listings Nov 2016 down to 618-Listings Oct 2017                    Good

Sold homes up 28.8%                     76-Homes Sold Oct 2017 from 59-Homes Sold Nov 2016                 Good

Pending Sales up 21.9%                 73-Pending Sales Nov 2016 up to 89-Pending Sales Oct 2017         Good

Price Segment: $1M – $1.499M:

Inventory down 28.6%                  259 -Listings Nov 2016 down to 185-Listings Oct 2017                       Good

Sold Homes up 88.9%                   17-Homes Sold Oct 2017 up from 9-Homes Sold in Nov 2016             Good

Pending Sales Down 100%           2-Pending Sales Nov 2016 down to 0-Pending Sales Nov 2017           Fair

Price Segment: $1.5M – UP:

Inventory down 16.3%                  368-Listings Nov 2016 down to 308-Listings Oct 2017                        Good

Sold Homes down 16.7%              10-Homes Sold in 2017, down from 12-Homes Sold 2016                    Good

Pending Sales up 200%                 3 in Oct 2017, only 1 in Nov 2016                                                         Good

As you can see, the market is strengthening. Please feel free to reach out to Dave Kibbey & Associates for proven professional assistance with your Real Estate Listing, Sale or Purchase. If you’re a buyer thinking of purchasing your dream home, or a seller upsizing or down-sizing, buying a vacation home, family compound, investment property, or it’s simply time in life to sell your desert property, I welcome the opportunity to speak with you. Let’s find out what is important to you, and see what I can do to help you achieve your Real Estate goals.

* Please click here to view the Market Update Trend Reports.

Wishing you Happy Holidays ahead as we move towards an exciting 2018!

July 11th, 2017

June 2017 over June 2016 Market Update

Good News… The market is heating up!

Yes… it’s been HOT! Temps from 108-122 degrees, and the market is heating up too!

Year over Year, the market is heating up with increased sales numbers in most price segments from the median home price to fine luxury homes. Historically… the lower the sales price the more homes sold, the higher the sales price less homes sold, though increased sales numbers do not always initially mean higher sales prices. For example, much of the luxury home market clearly remains a buyers’ market, with volatile inventory levels in price segments above the $750,000, as many sellers have had to reduce their asking price once, twice, some three times to get their homes sold. As the market show improvement, it is somewhat typical to see initial listing overpricing. I can appreciate this mindset as seller’s do not want to leave money on the table. Though often in markets like this, this way of thinking ends up netting sellers less at closing, due to price reductions and accumulated days on market. Like the $250K – $500K median-priced home market, the more realistic sellers are, the more realistic buyers we will see in the market place. Along with this, we will also very likely see fluidity with rising prices in the luxury home market as well.

Here is the breakdown – Many price segments have experienced growth, some in both the number of homes Sold, along with Sales Prices, some segments with substantial improvement, others as previously mentioned have dipped.

$250K – $500K Price Segment – Rancho Mirage had 163 sales in the 1st half of 2016 and 230 sales in the 1st half of 2017. Palm Desert had 436 sales in the 1st half of 2016 and 511 sales in the 1st half of 2017. Indian Wells, the smallest of the four communities had 42 sales in the 1st half of 2016 and 67 sales in the 1st half of 2017. La Quinta had 340 sales in the 1st half of 2016 and 430 sales in the 1st half of 2017. Along with substantial growth in sales numbers, both Rancho Mirage and La Quinta enjoyed slight gains in the median sales price; Rancho Mirage with a 1% increase, and La Quinta with 2.75% increase, though both Palm Desert and Indian Wells median sales price dropped slightly, Palm Desert 2.75% decrease, and Indian Wells 6% decrease (see attached spreadsheet).

$500,000-$750,000 Price Segment – Rancho Mirage had 79 sales in the 1st half of 2016 and 108 sales in the 1st half of 2017. Palm Desert had 79 sales in the 1st half of 2016 and 108 sales in the 1st half of 2017. Indian Wells dipped with 49 sales in the 1st half of 2016 and 41 sales in the 1st half of 2017. La Quinta had 122 sales in the 1st half of 2016 and 162 sales in the 1st half of 2017.

$750,000 – $1M Price Segment – Rancho Mirage was par with last year, 33 sales in the 1st half of 2016 and 33 sales in the 1st half of 2017, though the median sales price dropped from $873,850 to $810,000. Palm Desert was also par with 26 sales in the 1st half of 2016 and 26 sales in the 1st half of 2017 with a slight increase in median value. Indian Wells jumped from 20 sales in the 1st half of 2016 and 33 sales in the 1st half of 2017, though the median sales price dropped from $866,250 last year to $825,000 this year. La Quinta jumped substantially from 50 sales in the 1st half of 2016 to 76 sales in the 1st half of 2017, though the median sales price dropped from $850,000 last year to $833,750 this year.

$1M – $1.25M Price Segment – Rancho Mirage dipped with 26 sales in the 1st half of 2016 and 19 sales in the 1st half of 2017. Palm Desert also dipped with 10 sales in the 1st half of 2016 and 7 sales in the 1st half of 2017. Indian Wells jumped from 10 sales in the 1st half of 2016 to 13 sales in the 1st half of 2017. La Quinta almost doubled sales numbers with 27 sales in the 1st half of 2016 and 49 sales in the 1st half of 2017, though the median sales price in this segment dropped from $1,150,000 in 2016 to $1,100,000 in 2017.

$1.25M – $1.5M Price Segment – Rancho Mirage jumped from 15 sales in the 1st half of 2016 to 19 sales in the 1st half of 2017, though the median sales price in this segment dropped from $1,409,827 in 2016 to $1,350,000 the first half of this year. Palm Desert jumped from 3 sales in the 1st half of 2016 to 211 sales in the 1st half of 2017, though the median sales price in this segment dropped from $1,450,000 last year to $1,345,000 the first half of this year. Indian Wells dipped from 12 sales in the 1st half of 2016 to only 6 sales in the 1st half of 2017, though the median sales price in this segment remains $1.4M. La Quinta jumped from 15 sales in the 1st half of 2016 to 22 sales in the 1st half of 2017, though the median sales price dropped just slightly.

$1.5M – $1.75M Price Segment – Rancho Mirage up is from 12 sales in the 1st half of 2016 to 19 sales in the 1st half of 2017, though the median sales price in this segment dropped slightly. Palm Desert was par with 2 sales in the 1st half of 2016 and 2 sales in the 1st half of 2017, though the median sales price in this segment rose from $1,537,500 in 2016 up to $1,650,000 the first half of this year. Indian Wells up slightly with 7 sales in the 1st half of 2016 and 8 sales in the 1st half of 2017. La Quinta jumped from 10 sales in the 1st half of 2016 to 14 sales in the 1st half of 2017, along with a slight increase in the median sales price in this segment which jumped from $1,600,000 in 2016 to $1,612,500 the first half of this year.

$1,750,000 – $2M Price Segment – Rancho Mirage sales dipped with 5 sales in the 1st half of 2016 and only 2 sales in the 1st half of 2017, though the median sales price in this segment for those two sales rose from $1,800,000 in 2016 to $1,912,500 the first half of this year. Palm Desert was par with 3 sales in the 1st half of 2016 and 3 sales in the 1st half of 2017, and the median sales price in this segment rose from $1,900,000 in 2016 to $1,975,000 the first half of this year. Indian Wells rose from 3 sales in the 1st half of 2016 to 4 sales in the 1st half of 2017, though the median sales price in this segment dropped from $1,409,827 in 2016 to $1,350,000 the first half of this year, also with a slight increase in sales price. La Quinta sales were half this year with 16 in the 1st half of 2016 and only 8 sales in the 1st half of 2017, though the median sales price for these 8 sales rose from $1,837,500 in 2016 to $1,926,500 the first half of this year.

$2M – $2.5M Price Segment – Rancho Mirage dipped from 8 sales in the 1st half of 2016 to 6 sales in the 1st half of 2017, and the median sales price in this segment dropped from $2,337,500 in 2016 to $2,227,287 the first half of this year. Palm Desert had 2 sales in the 1st half of 2016 and 3 sales in the 1st half of 2017, with a slight increase in median sales price. Indian Wells dipped from 7 sales in the 1st half of 2016 and 5 sales in the 1st half of 2017, along with a slight dip in median sales price. La Quinta doubled its sales numbers from 4 sales in the 1st half of 2016 to 8 sales in the 1st half of 2017, though the median sales price in this segment dropped from $2,184,850 in 2016 to $2,143,750 the first half of this year.

$2.5M -$3M Price Segment – Rancho Mirage jumped from 2 sales in the 1st half of 2016 to 4 sales in the 1st half of 2017, and gained value in this price segment with the median sales price in this segment $2,700,000 in 2016 up to $2,972,500 the first half of this year. Palm Desert was par with 2 sales in the 1st half of 2016 and 2 sales in the 1st half of 2017, along with the median sales price in this segment up from from $2,662,500 in 2016 to $2,725,000 the first half of this year. Indian Wells rose from 1 sale in the 1st half of 2016 to 2 sales in the 1st half of 2017, though the median sales price in this segment dropped $200,000 from $2,900,000 in 2016 to $2,700,000 the first half of this year. La Quinta was par and strong with 5 sales in the 1st half of 2016 and 5 sales in the 1st half of 2017, the median sales price remained par at $2.8M.

Finally, $3M and UP Price Segment – Showing Strength – This entire segment outperformed last year’s numbers. Rancho Mirage jumped from 1 sale in the 1st half of 2016 and 2 sales in the 1st half of 2017, though the median sales price in this segment dropped from $3,600,000 in 2016 to $3,300,000 the first half of this year. Palm Desert jumped from 5 sales in the 1st half of 2016 and 8 sales in the 1st half of 2017, along with a BIG jump in the median sales price in this segment, from $3,895,000 in 2016 up to $4,887,500 the first half of this year. Indian Wells was strong and jumped from had 0 sales in the 1st half of 2016 to 12 sales in the 1st half of 2017, with the median sales price in this segment at $3,940,000. La Quinta also jumped from 7 sales in the 1st half of 2016 and 8 sales in the 1st half of 2017, though the median sales price in this segment dropped from $3,900,000 in 2016 to $3,755,000 the first half of this year.

As you can see from the 1st half of 2017, the market in most price segments is showing exciting signs of improvement. If you’re a Buyer, jump into the market now and take advantage of inventory and prices, especially while mortgage rates remain low, as rates are clearly on the rise. If you’re a Seller, in setting your expectations for the 2017 Fall Season, do your homework, work with a proven professional, and set your expectations right from the beginning. If you do, there’s a high likelihood you will achieve your goal and make your move.

I hope you found this important market update useful and informative. If you have any questions, perhaps you’re thinking of Buying or Selling, please feel free to reach out to me. I welcome the opportunity to meet with you, discuss what is important to you, and help you achieve your goals.

Have a wonderful Summer!

For more details on sales numbers, please click here to view the attached spreadsheets.

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