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Market Update

November 17th, 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.

May 22nd, 2017

Hello, GOOD-BUY

April 2017 – Sales numbers seeing progress in the median home price segment, though the luxury market remains sluggish at best.

Year over Year, April sales numbers under the $750,000 price segment are showing improvement, with an increasing absorption rate due to lower levels of inventory and significant sales numbers in the median sales price range. Above the $750,000 price segment, the market clearly remains a buyers’ market, especially the luxury Home market, as high levels of inventory continue to outpace demand. Knowing this, it appears that many homes, especially the luxury home market in the eyes of the buyer appear to be over-priced. Today, buyers have a plethora of information available at their fingertips through online web-portals galore, that provide data that help them make an informed decision, though in many cases confuse them into a hold position. This is where the knowledgeable seasoned real estate professional can help direct that prospect into making an informed decision. Below you will find an illustration in both sales numbers and prices, within the down valley cities of Rancho Mirage, Palm Desert, Indian Wells, and La Quinta, the four cities I specialize in.

The real-time data below is derived from the California Desert Association of Realtors – Desert Area MLS 05.22.2017. *Months of inventory* offers you an idea of how many months it will likely take to sell your home. In a buyers’ market, pricing aggressively or ahead of the market, often gets your home sold faster, often without a price reduction, and in many cases for more money. Sellers must also have a willingness to reduce their asking price if necessary or be patient with what the market delivers, and a willingness to gamble with the market.

$250K-$500K – The median sale price segment experienced jumps in both the number of homes sold, as well as sales prices. For example; Rancho Mirage 42 Homes Sold this April with the average sales price $390,000, over 33 Homes Sold last April with an average sales price of $352,000, an 11% increase in value. Palm Desert 91 Homes Sold this April with an average sales price $370,000 (big jump), up 4 over 87 Homes Sold last April with an average sales price of $325,000, a 14% increase in value. Indian Wells 12 Homes Sold this April with an average sales price of $397,500, up 3 over 9 Homes Sold last year with an average sales price of $390,000, a 2% increase in value. La Quinta which historically has had the best growth over the past few years, was down 6 sales to 62 Homes Sold this April, with an average sales price of $344,500, up slightly over last April with an average sales price of $342,500 with 68 Homes Sold, an increase in value of .5%. STRONG sales activity considering there are 285 ACTIVE Listings in the above-mentioned price segment and areas.

$500K-$750K – As we get into higher price segments, the number of sales decline dramatically, though this price segment still enjoyed better numbers in both the amount of homes sold as well as some sales prices. Rancho Mirage 24 Homes Sold this April over 18 last April, though the Closing prices dropped from an average of $605,000 last April to $597,500 this April, 1.2% decline in value. Palm Desert 23 Homes Sold this April with an average closing price of $594,000, up from 21 Homes Sold last April with an average closing price of $550,000, an 8% increase in value. Indian Wells 10 Homes Sold this April with a decline in average closing price of $575,000, over 7 Homes Sold last April with a closing price average of $625,000, and 8.75% decline in value. La Quinta 32 Homes Sold this April with an average closing price of $640,000, up over 26 Homes Sold last April with an average closing price of $620,250, a 3.1% increase in value. SLOW TO MODERATE sales activity considering there are 369 ACTIVE Listings in the above-mentioned price segment and areas. *(5.4-Month Inventory)

$750K-$1MRancho Mirage was down in the number of homes Sold as well as prices, with 5 Homes Sold this April with an average closing price of $780,000, down from 8 Homes Sold last April with an average closing price of $875,000, a 12.2% decline in value. Palm Desert was par with 6 Homes Sold this April with an average closing price of $830,000, the same as last April. Indian Wells was up with 3 Homes Sold this April, par in closing price of $825,000. La Quinta was up slightly in sales with 14 homes Sold this April, though down in average closing price to $908,500, with 12 Homes Sold last April with an average closing price of $922,500, a 1.5% decline in value. SLOW TO MODERATE sales activity considering there are 234 ACTIVE Listings in the above-mentioned price segment and areas. *(8.4-Month Inventory -Supply of homes)

$1M-$1.25M – Overall this price segment dipped except for Indian Wells, which was up 4 closings, though each of them had serious price reductions prior to selling. Rancho Mirage – dipped with 3 Homes Sold in April with an average closing price of $1.110M. Palm Desert is slow moving with 1 Home Sold this April at $1.2M, down in value from last April with 1 Closing at $1.125M. Indian Wells 4 homes Sold, up from zero last April with an average closing price of $1.112M (As mentioned above with substantial price reductions prior to selling). La Quinta Par with 4 Homes Sold, though closings prices dipped from $1.150M last April to $1.125M this April, decline 2.3% in value. SLOW sales activity considering there are 131 ACTIVE Listings in the above-mentioned price segment areas. *(11-month inventory- Supply of homes)

$1.25M-$1.5M – Sluggish Luxury Market – Price reductions seem to be the key to selling luxury homes these days. Rancho Mirage A jump in sales with 5 Homes Sold (mainly new construction) with an average closing price of $1.35M, over zero closings last April. Palm Desert Par with 1 closing at $1.499M, over last April closing at $1.255M. Indian Wells was quiet with no Homes Sold this April, and 4 Homes Sold last April, with an average closing price of $1.337M. La Quinta Par with last Aprils 4 closings, though the average closing price dropping from $1.409M last April to $1.38M this April. SLOW sales activity considering there are 117 ACTIVE Listings in the above-mentioned price segment and areas. *(11.7-month inventory- Supply of homes)

$1.5M-$1.75M – Sluggish Luxury Market. Rancho Mirage 3 closings this April, up by 2 over last April 1 closing, though closing prices dipped from $1.695M last April to an average of $1.595 this April, a 6.25% decline in value. Palm Desert has no Closings this April and only 1 last April. Indian Wells 2 closings this April, with an average closing price of $1.627M, up from 1 closing last April at $1.515M, up 7.4%. La Quinta 3 Closings this April with an average Closing price of $1.625M, up from 2 Closings last April at $1.637M. VERY SLOW considering there are 61 ACTIVE Listings in the above-mentioned price segment and areas. *(12.2-Month Inventory – Supply of homes)

$1.75M-$2M – Sluggish Luxury Market. Rancho Mirage 1 Closing @ $1.875M, over zero movement last April. Palm Desert -Zero movement this April with only 1 Closing last April @ $2M. Indian Wells 1 Closing @$1.825M, over last April with zero movement. La Quinta was par with last April with 2 Closings @ $2.075M slightly up over last April average @ $2.047M. VERY SLOW considering there are 59 ACTIVE Listings in this price segment. *(14.75 Month Inventory -Supply of homes)

$2M – $2.5M – Sluggish Luxury Market. Rancho Mirage and Palm Desert with zero Closings. Indian Wells 2 Closings, par with last April averaging $2.25M, over last April @ $2.22M. La Quinta down to 1 Closing this April @ $2.075M, with 2 Closings last April with an average of $2.047M. VERY SLOW considering there are 71 ACTIVE Listings in the above-mentioned price segment and areas. *(2-year inventory-Supply of homes)

$2.5M – $3M – Sluggish Luxury Market. Rancho Mirage was par with 1 Closing this April @ $2.8M, and 1 last April @ $2.6M. Palm Desert with zero Closings this April, 1 last April @ $2.675M. Indian Wells with zero Closings this April, and 1 Closing last April @ $2.9M. La Quinta was par with 1 Closing this April @ $2.85M, and 1 Closing last April @ $2.595M. VERY SLOW moving considering there are 47 ACTIVE Listings in the above-mentioned price segment and areas. *(2-year Inventory -Supply of homes)

$3M & Up – Sluggish Luxury Market. Rancho Mirage 1 Closing in April @ $3.45M, Palm Desert Zero Closings this April, 2 last April averaging $4.825M, Indian Wells improved this April with 2 Closings averaging $3.94M, and Zero closings this April. La Quinta enjoyed 2 Closings this April averaging $7.9M, with zero Closings last April. VERY slow moving considering there are 125 ACTIVE listings in this price segment in the above-mentioned price segment and areas. *(25 months Inventory or just over 2-year supply of homes)

Buyers, as you can see above, it clearly remains a buyers’ market. This brings opportunity in the eyes of savvy buyers, who have been thinking about buying a home in our beautiful sought after Coachella Valley.

Sellers, my advice is to look at your home and value, in the eyes of the buyer and be realistic with your expectations. Improvement in the down valley market is a slow process, though overall, we do continue to see progress. As indicated above, inventory clearly continues to outpace demand in almost every price segment, providing a plethora of inventory for buyers to choose from. Currently 52% of homes sold in the areas above have been reduced 1-2 times prior to receiving a negotiable offer. If you are a serious motivated seller, and your home is sitting unsold, it is time to become aggressive with your asking price, and have a willingness to reduce even more if necessary, or the likelihood is your home will sit unsold. The question is: What is it costing you to sit unsold? It is all about your level of motivation to get your home Sold.

I hope you found this market update helpful and informational. If you have an interest in buying, or selling, or have questions or comments, I welcome the opportunity to speak with you.

For more details on sales numbers, please click here.

April 12th, 2017

Will the market this Spring finally tip to a seller’s market? 

Excessive rain here in the desert this year brought the most amazing colorful desert hillsides I’ve experienced in my 57 years living in the desert, reminding me that of New Zealand. Many home sellers this year are hoping the Real Estate Market will be as colorful. This week many desert homes, hotels and restaurants will overflow with visitors in the valley for one of the two Coachella-Fest events, followed by Stage Coach giving our hospitality industry a big shot in the arm. Many say the event attendees do not do much for our valley. I beg to differ, the more people that visit our desert paradise, the more popular it becomes. People that attend these events come from all over the world, many affluent, fall in love with our sunny desert climate, beauty, plethora of golf courses, amazing hiking trails, and relatively close proximity to the coast and mountains. For example, this morning I received a call from a Coachella-Fest attendee, an APPLE executive with plenty of CASH that has attended Coachella Fest the last two years, that I will very likely sell a home to this season.

It is also looking like current and future growth to our valley is colorful as well. There is considerable new home development in the Coachella Valley, in addition the hospitality industry opening the following new Hotel Resorts; Four-Star Boutique Hotel-Paseo in Palm Desert, Kimpton-Rowan Hotel in downtown Palm Springs, and Montage Resort Hotel in La Quinta, all positive signs of growth and confidence in our desert paradise.

Home Sales Activity – Good News Overall: This year Dave Kibbey & Associates is off to a record setting Listing and Sales year with just under $25 Million Pending and Sold in the 1st Quarter. Honesty, hard work, quality marketing, being in touch with the market, and great customer care pay off. Year over year, the overall number of homes sold this March were up in most price segments, with the best overall growth in La Quinta.  All the four-major down valley cities enjoyed an increase number in sales prices in many price segments, with a few price segments off slightly from last year’s sales prices. Like last year… La Quinta, outperformed Rancho Mirage, Palm Desert, and Indian Wells. Indian Wells by far, the smallest of the four cities had the least movement. In fact, values dropped slightly in four of the ten price segments (see attached spreadsheet). Indian Wells as desirable as it is, I attribute slow growth to having the least amount of new development, with most homes older, and over the past two years appear to have been initially over-priced. As the market adjusts we will very likely see growth in Indian Wells with some of the valley’s most affluent living in; The Vintage, Eldorado CC, The Reserve, and Toscana CC which by the way has had good sales volume. Palm Desert enjoyed a jump in sales in every price segment this March, though it didn’t generate the large number of sales La Quinta generated.

Market volatility – Last year, there are price segments that outperformed this year either in the amount of homes sold and or values. For example, March 2016, the $1M-$1.25M & $1.25M-$1.5M price segments were on fire, yet this year the amount of homes sold dropped, as well as values in three of the four down valley cities. Last year the $750K-$1M segment was slow selling, yet this year each of the four cities enjoyed jumps in sales, though values dropped slightly in three of the four cities. Price reductions converted to sales… except; La Quinta in this price segment with the median home sales price last March $785,000 which rose to $839,000 this March. The biggest jumps this March were Rancho Mirage in the $250k-$500K segment with 27 sales last March, and 47 this March, and Palm Desert in the $500k-$750K segment doubling sales numbers with 10 last March, and 21 this March.

Finally, in the Luxury Market; Rancho Mirage in the $1.5M-$1.75M segment enjoyed eight sales this March up from five sales last March. In the same price segment, Indian Wells doubled the number of sales this March with 4 sales (2 last March) along with a slight rise in value up to a median sales price of $1,630,000. The two largest jumps in the high-end luxury market $3M and up, were Indian Wells from no sales last March and three sales this March with a median sales price of $3.3M, and La Quinta jumping from one sale last March to three this year with a median sales price of $3.635M.

Year over year Snapshot – First Qtr. 2017 over First Qtr. 2016 – My market update spreadsheets consist of the four desert down valley cities; Rancho Mirage, Palm Desert, Indian Wells, and La Quinta, with each broken down into ten price segments that collectively offer 40 median sales prices. This year 20 of the 40 price segments, or 50% of the median Sold prices dropped slightly year over year. Clear evidence we’re still experiencing a buyers’ market, and we must pay attention to value in the eyes of the buyer. Many of these homes were initially listed too high, and with a price reduction or two, the home Sold.

Overall this is great news, and market is in a better place. As we move through our peak selling season this year, let’s hope this momentum increases to a point where sales outpace seasonal inventory levels. If so we will see values on the rise.

Should you have questions about this market update, or your thinking about buying or selling, I welcome the opportunity to speak with you and help you make an informed decision.

Until next month, enjoy the lifestyle our desert paradise offers.

For more details on sales numbers, please click here.

February 3rd, 2017

2017 off with a BANG

We have already blown through January 2017, how time fly’s as we move into high season where we will see the deserts highest seasonal population.  With many events; golf tournaments, tennis tournaments, and festivals of all kinds, our beautiful desert continues to grow as more and more people come to the desert for a visit, and ultimately end up buying a home making the desert their full or part time residence.

Many sellers and real estate agents ask the following question? Will our desirable desert location, plethora of home inventory, and raising mortgage rates convert to stronger Real Estate sales and home appreciation in 2017?

It is important that we recognize the market is certainly not bad, as we continue to see decent sales volume in many price segments. The problem lies with high inventory levels, which far outweigh buyer demand. It is clearly a buyers’ market and buyers know it. When listing homes today, sellers must look at their home value in the eyes of today’s buyer, prepare their homes to meet their competition; in other words, looking their very best and strategically price it right, or the likelihood is their home will sit unsold.

Depending on price-segment I am currently seeing anywhere from 4-month to 36-month inventory levels throughout the desert. What this means in Realtor terms, it could take anywhere from 4-36 months to sell your home, if you are not priced ahead of the market, clearly showing buyers you are a motivated seller. Statistically speaking, the higher the price the longer it will take to sell. Homes listed over 90-120 days but not selling usually mean the asking price is just too high. Smart, serious sellers will reduce their asking price 3-5%, sometimes a little more depending on how many showings, which usually convert to a sale soon after.

We are currently experiencing a strong volume of inquiries, along with buyers doing discovery, many gun shy on pulling the trigger with their purchases specifically due to how many homes are for sale. We discovered the same last year as well as 2015, although it started later in the season.

Finally, I am optimistic we will see strong movement this year, though buyers will be taking advantage of a buyers’ market in most price segments and drive a hard bargain. Be prepared to negotiate. If you’re thinking of selling or buying, please feel free to reach out to me, I welcome your call.

For more details on sales numbers, please click here.

January 2nd, 2017

How did the Real Estate Market perform in 2016? Volatility with improvement…

Aloha from Kona Hawaii,

As my wife and I bring in the New Year with Aloha spirit, our annual tradition, we think back over 2016. There were good’s and bad’s as we all experience in a years time, yet ultimately we feel so blessed. Having a great family, great friends, great clients and a thriving business I’m truly passionate about.

How time flies by… Twenty-Sixteen was another great year in our amazingly beautiful Coachella Valley. Overall sales numbers in most price segments were up slightly over 2015 numbers showing some momentum in the market, though most price segments with a few notable gain exceptions, experienced a slight drop in value.

As you review the attached data grid, you will find in the four areas of my expertise; Rancho Mirage, Palm Desert, Indian Wells and La Quinta, many price segments experienced an increase in sales, though the median sales price dipped, with the exception of a few good gains as you will find below.

For example starting from the bottom ($250K-$500K price segment) in Rancho Mirage, 301 homes sold in 2016 verses 267 in 2015… good growth, though the median sales price dipped from $397K to $370,000K, a 7% decrease in value. Palm Desert experienced a shot in the arm with 777 sales in 2016 vs 737 in 2015, with a 3.5% gain in values. Indian Wells sales dropped in this segment from 81 to 74, but gained $4,500 in the median sales price year over year. La Quinta experienced a significant increase in sales in 2016 from 556 in 2015 to 650 in 2016, a 17% gain, with a slight dip in median sales price from $345K to $342,500.

In the $750 -$1M price segment both Rancho Mirage and Indian Wells experienced gains in both sales and values, from 25 sales in 2015 to 40 in 2016 along with a 5% gain in median sales price.

Rancho Mirage experienced another notable jump in the $1.25M – $1.5M segment with 27 sales in 2016 over 20 in 2015, along with a 6.5% increase in median sales price. Another notable jump in the luxury market – La Quinta in the $1.75M – $2M price segment with a 51% jump in sales from 11 sales in 2015 to 23 sales in 2016, though the median price dropped in this segment slightly (1/4%) from  $1.85M to $1.845M, though great momentum.

La Quinta experienced the most Luxury to high-end Luxury homes sales with 40 sales in the $1M – $1.25M segment, 24 sales in the $1.25M – $1.5M, 16 sales in the $1.5M – $1.75M, 23 sales in the $1.75M – $2M, 11 sales in the $2M – $2.5M, 8 sales in the $2.5M – $3M and 13 sales above the $3M – Up price segment. La Quinta by far experienced the BEST sales numbers in 2016.

What’s causing continued volatility and holding the market back overall from seeing consistent appreciation like many other areas of the country? High inventory levels in most price segments throughout 2016 continued to outpace demand slowing momentum and causing buyers to pause a bit over the past two years slowing sales momentum.

Finally… there is an obvious post-election confidence in the market, as the amount of buyer inquiries I am experiencing is enormous. Mortgage rates will rise this year, in fact we’ve already seen some increases, so get out and buy! I cannot reiterate enough, if you’re thinking of buying in 2017, take advantage of a good selection of homes and low mortgage rates. This time may be a great opportunity for you to find the home of your dreams.

Please feel free to reach out to me for help or questions, I welcome the opportunity to serve you.

In closing, I thank You all for another year of friendship, fun and success in helping so many people achieve their goals.

Here’s to a GREAT 2017!

For more details on sales numbers, please click here.

December 6th, 2016

Calm before the storm? Many sellers hope so….

I hope you all had a wonderful Thanksgiving, we have so much to be thankful for.

As we look forward to the 2017 year ahead, many clients and prospects ask; Dave, How’s the market? What are your thoughts for 2017? Looking at how the market performed this year, we have experienced a healthy Real Estate market. In fact, I have had a record year though in many cases it’s been a grind between buyers and sellers. Looking at various community market trends and CMAs daily, I continue to see volatility with high inventory levels in most of the higher end price segments, and marginal demand, though most homes that are positioned aggressively are selling. This is quite the balancing act in pricing, especially in the luxury market in many cases taking longer to sell due to a lack of demand. My goal is always to protect my client’s equity, at the same time get their home SOLD.

Year over year, the only price segment this November that outperformed last November in all four down valley cities (Rancho Mirage, Palm Desert, Indian Wells and La Quinta) was the $250K-$500K. Rancho Mirage and Palm Desert experienced a slight uptick in sales in the $500k-$750K segment. The $750K – $1M segment which has been slow for the past two years also experienced a slight uptick in sales, a positive adjustment for sellers in that segment.

Looking back in history, we are approaching the end of another real estate cycle. In my eye’s, any appreciation we see over the next 1-2 years will be a positive shot in the arm.  It’s going to take a strong 2017 buyer market to wash away inventory levels enough to see appreciation, especially in the luxury market. As many of you have heard, mortgage rates are on the rise and should incentivize post-election buyers into making the move they have been thinking about.

It’s a great time to buy with a plethora of good homes on the market. I’ve spoken with quite a few prospects ready to buy next year, and I’m excited about helping sellers achieve their goals. In a nutshell… I believe 2017 will be a great year to buy and sell real estate.

Finally, remember that late November and December with Thanksgiving and Christmas are historically slower sales months, as people are rightfully focusing on the holidays, traveling, and special times with family and friends. Let’s hope this is the Calm before the storm, and 2017 is a banner year.

Wishing you and yours a Merry Christmas, a Wonderful Holiday Season, and a Happy New Year!

For more details on sales numbers, please click here.

November 4, 2016

Evident pre-Election Pause in the market | Post Election Momentum… we sure hope!

Our beautiful fall weather is here, so being, many snow-birds and seasonal residents too. Our cool evenings and warm days are certainly welcome after a typical HOT summer in the desert. Golden Voice Sponsored Desert TRIP bringing in the Rolling Stones, Paul McCartney, and the like… created an earlier populous Fall season here in the Coachella Valley pumping big revenue into our hospitality industry as well as planting seeds for future real estate clients.  As many of you reading this update can relate, that’s how it happens, you come to the Coachella Valley for a visit and before you know it, you love it so much you now own a condo or home. Local concerts such as Coachella and Stagecoach have brought a new younger level of buyer’s discovering the desert; savvy successful millennials who know what they want and have the desire for a second home in the Coachella Valley. As a lifetime desert resident, the transformation of the Coachella Valley over the past 50 years has been quite amazing, as I clearly remember riding my motorcycle over sand dunes throughout the desert, where now large housing subdivisions are located, such as Toscana Country Club in Indian Wells, now one of the fastest growing and most desirable luxury home developments in the Desert.

So, what can we expect from the real estate market post-election into our 2016- 2017 Season?

With my almost 20 years’ real estate experience in both investing and professional client representation, election years can certainly cause a pause in the market. This election, with our country so divided, even well qualified buyers seem to be holding off on pulling the trigger till post-election. Both homeowners that want to sell, and real estate professionals are hoping for a post-election shot in the arm with hope of an upward buyer trend creating a more balanced market. Most of the few significant real estate professionals here in the desert I’ve spoken to, believe the market will improve in 2017 though we may not see the market tip unless we see a significant increase in sales volume.
As I’ve mentioned in previous updates over the past two years, we continue to see tremendous volatility in the market with high levels of inventory, along with low – moderate buyer demand. Since 2014 inventory has grown higher each year, and I have a high level of confidence 2017 seasonal inventory will raise even higher than 2016. Year over year within my areas of expertise of Rancho Mirage, Palm Desert, Indian Wells and La Quinta, overall (combined price segments) inventory is up 13.4%, Sold Homes are up 8.9%, and Pending sales are up 9.8%, though most of these sales were below the $500,000 price segment. Current inventory examples: 9.5-month inventory in the $500-$750K price segment, 20.2-month inventory in the $750K-$1M price segment (the slowest selling), 8.1-month inventory in the $1M-$1.25M price segment, 11.4-month inventory in the $1.25M-$1.5M price segment, and a 24-month inventory in the $1.5M and up price segment. Overall, October was a slow month, however there are quite a few prospects looking. I have received four buyer referrals today (positive news) all of which are coming throughout the U.S. and Canada.

Many people have asked me why our desert market remains a buyers’ market, when markets to our west and north, Northern California, Oregon, Washington all the way north to Alaska are selling like crazy, in many cases multiple offers with some selling over asking price. You must remember we have always been, and will always be a resort destination with 40+-% of our homeowner’s absentee much of the year. Resort markets are typically slower to recover. Knowing all the above, if you have been thinking of buying a condo, home, or estate property, our central valley market offers a great selection of inventory to choose your desert dream home. In addition, super low mortgage rates remain available offering you even more financial flexibility should you choose to hold your cash, leverage the property and finance. Now may be a great time for you to pull the trigger on your dream home purchase. I have a plethora of amazing properties in all prices to share with you. Whether it be full time, part time, or vacation property we can help you find the right property at the right price. If you’re thinking of selling for whatever reason, our track record says it all.

For more details on sales numbers, please click here.

Positive thoughts as we move into high season, and I wish you and yours a wonderful Holiday season. Please feel free to reach out to me for your real estate needs… I welcome the opportunity to discuss your needs, and help you achieve your goals.

October 4, 2016

I hope you all had a wonderful summer with vacations away from the heat.  Our long awaited-for beautiful fall weather is approaching with cooler days & evenings.  Before you know it our desert population will double with seasonal visitors and snow-birds seeking our moderate seasonal weather.

Is the Real Estate market improving year over year?

There’s talk about the market improving in various Newspapers, Real Estate Tabloids, and Magazines.  That is true to some extent, however this improvement year over year is a mixed bag, and there is no continuity or consistent positive trend. For example, comparing the 3rd Qtr. of 2016 over same Qtr. 2015, throughout the four down valley Cities of my expertise (Rancho Mirage, Palm Desert, Indian Wells, and La Quinta) in various segments across the board, the number of homes Sold increased while in many price segments, the sales price of these homes sold actually dropped. In other price segments the number of homes Sold decreased, though many of those sales prices increased. Many properties that have SOLD over the past year, sold because those sellers payed attention to the market, stepped into reality with their asking price, dressed their homes up with minor upgrades and staging if necessary, and positioned their property as a value in the eyes of the buyer. Unless you do this, or you have an amazing WOW Factor home, the odds are your home will sit unsold. Why? Until demand outpaces the high levels of inventory in many price segments, we will continue to experience volatility in our desert market. With that said, we must also be cognizant of cyclical markets, and remember we are 8+ years into a 10-year cycle. Moreover, we are climbing out of one of the worst real estate market crashes in history, so we should all be grateful our market is doing as well as it has, and remember one important factor; as many full-time homeowners live in our beautiful desert, we remain a resort seasonal destination, so do not expect our market to be popping like our coastal neighboring communities of Orange County and Los Angeles.

Finally, we also have to take into consideration the style of homes buyers are drawn to today has changed.

In addition to many buyers downsizing and wanting smaller homes, quite a few buyers today seem to love open floor-plans, a less-is-more style and attitude, and explained by buyers as easy-living.  With this in mind, some of the older more compartmentalized homes are taking longer to sell. One final tid-bit of information – Buyers today seem to like a home done or undone, no in-between. In other words, homes that are done to the 9’s are desirable to the buyer who says, I can move in and not do a thing. Or a home that may be dated in its entirety sell faster to the buyer who wants to buy the home at a lower price and personalize it themselves. Homes that are partially upgraded, for example a new kitchen, but dated bathrooms… puzzle buyers and dramatically slow down the sales process.

My advice… If you are planning to buy now and take advantage of today’s inventory, there are indeed some really good buys out there. If you are planning to sell, pay attention to the market in your area and price segment and set your expectations consistent with what the market has been delivering. If you do, you will likely sell faster, deal with less showings to get your home Sold, and you will likely sell closer to your asking price. If you have a WOW Factor home, yes you can ask more $$$, in some cases much more though you may have to be patient for that RIGHT buyer to walk through the door. Oh by the way… get ready to negotiate. FYI – The average listing to sale price percentage varies between 88% and 94% depending on price segment. The lower the price the higher the %, the higher the price the lower the %.

For more details on sales numbers, please click here.

I hope you found this information helpful. If I can be of help in any way, please feel free to reach out to me. I welcome the opportunity to talk with you.

July 8, 2016

The 1st half of 2016 was good, though sales numbers and values were not as strong as 2014 & 2015. How will we do in the 3rd and 4th quarters this year? Great question!

Actually the $250,000 – $500,000 price segment was stronger than 2015’s number of sales in the 1st half this year, though due to higher inventory levels. Values dropped slightly, with the exception of Palm Desert outperforming its neighboring cities of La Quinta, Indian Wells and Rancho Mirage. Few price segments outperformed 2015 with regard to values.

Where seasonal inventory historically drops considerably in July, trend reports indicate many sellers have held their properties on the market longer this year with hopes of serious summer buyers. Thus far for some sellers that decision was a win-win, as an example; I currently have $4.2 Million in escrow this month.

Being aware that this has been a volatile election year, and our country is seeming to be so divided, I could be wrong, though I am not confident we will not see improvement in the market until after the presidential elections. Historically election years can be volatile.

Knowing the news about Brexit; Britain voted to the European Union, this has actually given mortgage rates a shot in the arm causing a temporary reduction in mortgage rates, which could even drop lower. Maybe this is the shot in the arm our local market needs to blow by 2015 numbers.

For more details on sales numbers, please click here.

Stay cool this summer and I’ll be updating you in August.

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