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Market Update

July 11th, 2017 | Author: Dave Kibbey

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 | Author: Dave Kibbey

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 | Author: Dave Kibbey

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 | Author: Dave Kibbey

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 | Author: Dave Kibbey

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 | Author: Dave Kibbey

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 | Author: Dave Kibbey

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 | Author: Dave Kibbey

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 | Author: Dave Kibbey

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.

June 3rd, 2016 | Author: Dave Kibbey

How will our 2016 2nd Quarter end?

As our desert weather heats up into the triple digits becoming HOT, May 2016 sales were certainly not an indicator of a HOT market. While home sales remain moderate, most price segments experienced another dip off May 2015 numbers in both the number of homes sold, as well as values throughout my areas of expertise; Rancho Mirage, Palm Desert, Indian Wells, and La Quinta.

Why? Good question when it is clearly a buyers’ market with relatively good inventory to select from, in addition to historically low mortgage rates, moderate demand, and in most cases motivated sellers. I do know from years of experience that election years can be volatile which we have certainly experienced this year. Buyers seem to be cautious doing more discovery prior to buying than in the past, as a sense of uncertainty is evident. Furthermore, the desert has and always will be a resort destination. Even though year round ownership has increased dramatically over the years, many owners leave the desert for the summer looking for a cooler more moderate temperature. Knowing this, inventory is also seasonal as market trend reports prove. Meaning real estate brokers and sellers are hoping buyers smarten up, and take advantage of many deals in the market. In most cases sellers have become aware the soft market, and in order to sell their properties, they must be aggressively priced or they fall into the category of others, sitting unsold. For more details on sales numbers Click Here

If you’re a seller or someone thinking of selling, be mindful of timing and season based on the specific area of your home, which can be directly affected by seasonal market conditions. Be cognoscente of the level of professionalism and sales track record the agent and brokerage you choose, posing a direct reflection on overall results you will achieve. Today and into next season, be smart and be aggressive with your pricing, and the likelihood is your home will sell is a reasonable period of time, and likely for more than it will if it sits unsold long term.  Homes sitting unsold for long periods of time (usually over-priced) devalue the property to a point the seller could have netted more by pricing aggressively from the beginning. I’ve seen this happen many times in a buyers’ market.

Finally, I’ve been meeting with quite a few new prospects (sellers) who are unhappy with the fact their home has not sold, and they’re looking for a new aggressive agent. I find it interesting that one of the first questions some of them ask; “How much commission do you charge? Can you sell my home for 5% instead of 6%? My answers to their question; How important is it to you to get your home sold for the highest price possible? Wouldn’t it make sense to focus on hiring an agent you feel highly confident and comfortable that agent has the ability, professionalism, and negotiating skills, and desire to protect your equity and net you more? The fact is in almost every case; I can ultimately net a seller quite a bit more than the 1% they think they would save by a reduced commission. Furthermore, in the grand scheme of things the 1% is usually chump change based on the value of their home. Trust me hire a professional that’s not afraid of telling you the truth, and you will save in the long run.

I hope you have found this update informational, and useful. Please feel free to reach out to me if you have questions. Whether buying or selling, Dave Kibbey & Associates is here to provide you with only the highest level of service and professionalism. Let’s see what this summer brings, until next month stay cool!

May 4th, 2016 | Author: Dave Kibbey

More is better…  for buyers when it comes to high inventory. It is clearly a buyers’ market creating quite the opportunity for buyers these days.

After living in the desert 57 years, I never get tired of our beautiful desert climate. The last few days our weather has been absolutely picture perfect. The wind seemed to have blown all of the Coachella & Stagecoach attendee’s right out of the desert…. No pun intended.  As usual come May 1st the wind has subsided and now we are experiencing cool mornings, warm days to heat our swimming pools, and perfect evenings to enjoy, like dining Al Fresco. It just doesn’t get any better.

On to the market – Rancho Mirage, Palm Desert, Indian Wells, and La Quinta areas. A lackluster real estate market here in the desert creates opportunity for buyers, as inventory levels continue to ride high on the market trend, especially in the luxury market. April home sales under the $1 Million price segment did enjoy slightly higher sales numbers than in March, and I expect to see this trend throughout the 2nd quarter this year. Thus far this year buyers have been shy to pull the trigger on their purchases, watching the market and hoping they would get a better buy after high season. In many cases they were correct in their assumption, as many sellers who set their expectations too high from the beginning, lowered their prices causing better values for buyers. Knowing this I believe we will experience stronger sales numbers in the 2nd Quarter, tightening up the market a bit, though buyers and sellers will continue to struggle in negotiations to find the right balance.

Moreover, I heard today mortgage rates will likely drop slightly in the 2nd quarter offering buyers an even better opportunity to leverage their home purchase at better rates making buying today even a better opportunity. If you have any questions regarding rates and or loan programs, please feel free to reach out to me and I’ll share with you the best contacts for the best and most professional lenders in town.

If you’re thinking of selling, be ready to set your expectations consistent with what the market is delivering and you will sell, if not the chances are you may sit on the market unsold. Please feel free to reach out to me. I welcome the opportunity to discuss your goals, and determine if now or in the near future is the right time to make your move. Timing is important!

To get a closer look at this April 2016 sales over April 2015 please Click Here.

All the best to you

Dave Kibbey

April 11th, 2016 | Author: Dave Kibbey

The market is HOT-HOT-NOT!

April fools… thus far in 2016 the market is chugging along, though it remains a Buyers’ Market especially in Luxury Homes. Although a few price segments this March performed better than March 2015 in addition to seeing some appreciation, for the most part sales numbers in most price segments are down just slightly from 2015 sales numbers (309 sales – March 2015, 299 sales – March 2016) which seems to be a trend since the beginning of 2015. It’s all about high levels of inventory causing buyers to be cautious and in many cases taking homes longer to sell.

Unlike Palm Springs’ HOT micro market… the down Valley Cities of Rancho Mirage, Palm Desert, Indian Wells and La Quinta markets are relatively soft in comparison, with continued high levels of inventory leading to a buyers’ market. This however could change quickly especially if we have a strong 2nd quarter with buyer prospects pulling the trigger and taking advantage of the many great values available. Over that past few years the heavy selling season picked up in the 2nd quarter with good sales stretching into the 3rd quarter, as cautious buyers complete their discovery and make their purchases.

It’s the PERFECT Storm for buyers to jump in to the market, where they have a crème of the crop selection of homes to choose from at great prices, and motivated sellers.

Attention BUYERS… Get out there now and take advantage of this market.

Here are the highlights:

Palm Desert       ($250K-$500K segment) enjoyed 78 sales this March over 56 sales last March, including a rise in Median Sales Price from $319,250 in 2015 to $350,000 this March.

Indian Wells       ($500K-$750K segment) enjoyed 16 sales this March over 8 sales last March including a rise in Median Sales Price from $592,500 – $616,000

La Quinta            ($500K-$750K) enjoyed 25 sales this March, 21 last March, and the median sales price jumped up from $569,00 last March up to $584,500 this March.

Rancho Mirage  ($750K-$1MM) experienced slight drop in sales from 7 last March to 6 this March though the median sales price jumped from $845,000 up to $922,500… NICE.

Rancho Mirage  ($1.5M-$1.75M) doubled slow sales numbers from 2 last March up to 4 this March with a small jump in the median sales price as well from $1625,000 last March up to $1,658,688 this March

Indian Wells        (1.5M-$1.75M) doubled sales from 1 sale last March up to 2 sales this March and the Median sales price jumps up from $1,525,00 last March up to $1,707,500 this March

Sales numbers and values in all other price segment’s dropped slightly from last March. If you’re thinking of buying call me today to discuss your goals. If you’re thinking of selling, or a seller that’s been sitting unsold, my advice is to seriously consider lowering your expectations and focus in on what the market will deliver in this 3rd quarter, or gamble being patient and consider staying on the market into the 3rd quarter as I believe we’re going to see buyers out hunting in the heat. Click Here to see a year over year chart of sales and prices covering my areas of expertise; Rancho Mirage, Palm Desert, Indian Wells, and La Quinta

Please feel free to reach out to me if you have any questions.

All the best to you.

March 3rd, 2016 | Author: Dave Kibbey

How’s the market performing? Will the market pick up and flush out high levels of inventory?

Hello… I hope you’re enjoying the lifestyle our beautiful desert offers. I think so many locals take this for granted because it’s so easy to live here. I can tell you visitors from the North West as well as many other areas of the world are so happy to be here enjoying our warm dry sunny climate.

Our recent weather has certainly been hotter, though from everything I can see with a few price segment exceptions, the market continues to remain cool but steady. Knowing there is a plethora of inventory in most price segments, it is clearly a buyers’ market. Even though we’ve lost most Canadian buyers for the time being, and overall less homes have sold year over year, the market continues to remain somewhat steady. Today buyers are picky because they can be, and sellers who have attempted to do the sloppy quick flip in other words “put lipstick on a pig” can be sitting unsold until they step into reality with their expectations. The opposite side –  quality homes priced right sell. Over the past 2 years in many situations sellers have had to lower their expectations to get their homes sold. It’s all about value in the eyes of the buyer, as I have reiterated previously, buyers have hundreds of internet portals to log-in to these days with more information than you can imagine, not to mention great images enabling them to pre-qualify homes ready to purchase before they even see them, or check them off the preview list.

Below please find a breakdown of both homes Sold and Price segments in the Cities of Rancho Mirage, Palm Desert, Indian Wells and La Quinta.

The $250,000 -$500,000 price segment took a big dip in sales numbers year over year with 134 SOLDs in Feb 2015 and only 79 SOLDs in Feb 2016. An average of the 4 Cities; RM, PD, IW & LQ – Sold median prices dipped significantly in February from $392,875 in 2015 down to $338,250 this year.

Sales in the $500,000 – $750,000 price segment rose slightly 36 homes sold in Feb 2015 to 40 homes sold in 2016 though sales prices were somewhat flat with the exception of La Quinta enjoying a significant rise in median Sold price from $560,000 in 2015 up to $647,000 in 2016

Sales in the $750,000 – $1M price segment dipped from 22 SOLDS in Feb 2015 to 15 SOLDS in 2016, though the median sales price rose slightly

Sales in the $1M – $1.25M price segment rose from 9 SOLDs in 2015 to 12 SOLDs in 2016. The median SOLD price dipped in both RM & PD, but rose slightly in both IW & LQ

Sales in the $1.25M – $1.5M price segment rose from 5 SOLDs in 2015 – 6 SOLDs this year. The median SOLD price dipped in all cities except La Quinta taking a very slight gain.

Sales in the $1.5M – $2M price segment were par with 13 SOLD in Feb 2015 and 13 SOLD this February. This has been the most consistent performing price segment year over year.

Sales in the $2M-$2.5M price segment dipped from 3 sales in Feb 2015 to 2 this February… SLOW

Sales in the $2.5M – $3M price segment dipped from 3 SOLDs in Feb 2015 to 2 this February… SLOW

Sales $3M and above were par year over year with 3 SOLDS in Feb 2015 and 3 this February… SLOW

Click Here to see a year over year chart of sales and prices covering my areas of expertise; Rancho Mirage, Palm Desert, Indian Wells, and La Quinta

Will the market pick up and flush out high levels of inventory? The stock market is looking better and oil prices are rising, two important factors that influence confidence levels in prospective buyers.  What I do know from my many years as a desert native, as well as the desert being a resort community, election years can cause buyers to be somewhat skeptical and slower to pull the trigger with a purchase. Nobody can take away the fact that our beautiful desert is and always will be a desirable and wonderful place to call home, whether part time or year around, people will continue to buy and sell. We have experienced some drastic positive changes in the market over the past few years and I am confident the market will eventually improve. Let’s see what happens this season. March, April and May are usually very GOOD seasonal sales months, and we’re all hoping for a strong season ahead. Positive thoughts as we move forward.

February 2nd, 2016 | Author: Dave Kibbey

Good sales volume… though inventory continues to control a buyers’ market. What will happen in 2016?

Depending on who you talk to, some say the market is bad, others say the market is doing well. This usually depends on what that individual’s sales volume or exposure to the business is.  The fact is the real estate market is certainly not bad, as sales numbers and values are up dramatically since the low point a few years ago.  As I’ve mentioned in previous updates, inventory has outpaced demand pushing sales volume down year over year. January is not always a good month to measure momentum as many of the year end closings escrows (homes SOLD) went under contract in December or pervious months and get pushed into the following year. Knowing this January was somewhat of a mixed bag if you will, consistent with most of the buyers’ market months throughout 2015 overall with one good exception, values in most price segments with a few exceptions were up slightly year over year. I believe the exceptions were sellers and agents setting their expectations too high, causing inventory to sit unsold for a longer period of time.

I believe 2016 will be a strong year, with a plethora of value priced properties, and buyers in the know about both a buyers’ market and their ability to borrow money at super great mortgage rates. Mortgages are finally easier to get these days, with lenders seemingly more aggressive with what packages they offer, not to mention quite a few stated loan packages investors are offering again. It’s really the perfect storm for both buyers and sellers, especially sellers who plan to buy another home after their home has sold.

2015 was a stellar year for Dave Kibbey & Associates in both sales and listing volume. January 2016 started off very strong for Dave Kibbey & Associates with 12 new listings totaling just under $15 Million with a total current listing volume of $24.2 Million. The luxury market continues to experience good movement in most cases outpacing previous year sales, and I expect 2016 to be another good year. The fact is sellers must be cognizant of the volatile market we are experiencing, in other words realistic with their expectations and the likelihood is they will sell.  Set their expectations too high and their home will likely sit unsold. For more information, Log-On to www.DesertEstateHomes.com or call me direct at 760.774.0105.

I hope you found this information helpful in understanding what’s happening today. If you have thoughts you would like to share, or have any questions, I welcome the opportunity to speak with you. Please click here for specific sales and values numbers for all four cities.

For now, get out and enjoy the beauty our beautiful desert offers.

All the best to you throughout 2016

December 31st, 2015 | Author: Dave Kibbey

Did 2015 sales numbers outperform 2014 numbers?

Aloha, I write this market update letter from the spiritual BIG Island of Hawaii, where my wife and I love to complete our year, reflecting on 2015 and the new year to come setting new inspiring 2016 goals and beginning our new year with an Aloha spirit.

Whether you’re a friend, current or past client, affiliate, associate, or valuable member on my team… knowing life’s up’s and downs, I’m hoping that overall your goods outweighed your bads and that 2015 was a another great year for you all. I’d like to THANK YOU with all my heart for the connection we share, and wish each and every one of you a Healthy, Prosperous, and Happy New Year.

Wow… 2015 flew by and a career BEST for Dave Kibbey & Associates in both the amount of listings taken and sold, overall a large number of clients I’ve been able to help achieve their real estate goals. Gratifying to say the least!

The market is healthy with a significant number of sales, though buyers are in the know seeing big inventory levels (selection of homes on the market). A perfect storm for buyers today; a plethora of home inventory to select from, and many motivated sellers chomping at the bit to get their homes sold, along with historically low mortgage rates which we will likely see an increase this year. With that said we hope to see buyer demand increase and out perform inventory in 2016. If we do not… we may see a continued decline in values in many different price segments. Buyers and sellers continue to butt heads with buyers in the know as mentioned above, and tough sellers, some unrealistic with their expectations in many cases causing multiple counter offers to structure a firm deal. Year 2016 will be an interesting year with presidential elections coming, and so much uncertainty in government and world affairs today, though I can promise you I will continue to look out for my clients best interests no matter what, shed light on the market helping my clients make informed decisions, and have another great record year.

Overall… the luxury market continues to do well. Sales numbers are down slightly in some communities, though values seem to be on the rise in some communities. Many of these luxury homes are very high quality homes with serious WOW factors generating high sales numbers. There are quite a few dated luxury homes on the market, many of which seem to be overpriced with the seller being the highest bidder thus sitting on the market unsold. Sellers have to make sense of their value and many times don’t even realize their home is dated until they see other listings in the same price point offering newly remodeled interiors and amenities. Honesty always helps clients make an informed decision.

Staying focused on the market, here is a breakdown of how 2015 sales numbers and values stacked up against 2014. Both sales and values dropped in most areas with of course a few exceptions as follows:

$250K – $500K Price Segment
Sales numbers and values were down with the following exceptions; La Quinta values were par with last median sales price @ $345,000. Indian Wells enjoyed a 2% increase in values @ $393.500

$500K – $750K Price Segment-
Sales and values were all down with the exception on Indian Wells, where sales were par with 2014. Median sales price of $600,000

$750K – $1MM Price Segment-
Sales numbers dropped in all four cities. Palm Desert enjoyed a slight increase in values with a median sales price of $855,000, and Indian Wells remains par with a median sales price of $825,000

$1MM -$1.25MM Price Segment-
Sales numbers dropped in all four cities though both Rancho Mirage and La Quinta enjoyed a slight increase in values. Rancho Mirage and La Quinta median sales price $1,150,000

$1.25MM – $1.5MM Price Segment-
Sales were down in all four communities though both Rancho Mirage and La Quinta enjoyed a 3% increase in value

$1.5MM – $2MM Price Segment-
Sales were up in all four cities with La Quinta enjoying the largest just almost doubling their sales from 24-39 though La Quinta values dropped 5%. All other cities Values were UP.

$2MM – $2.5MM Price Segment-
Rancho Mirage enjoyed a jump in sales from three last year to five this year. Values were UP in all four cities

$2.5MM – $3MM Price Segment-
Sales numbers were par in both Palm Desert and Indian Wells… up slightly in both Rancho Mirage and La Quinta. Values were UP slightly in Rancho Mirage and La Quinta

$3MM and up Price Segment-
Sales numbers were down in all four cities except La Quinta enjoying two more sales than last year. Values were down slightly in Indian Wells & Rancho Mirage, though La Quinta enjoyed a 9% increase, and Palm Desert values remain the highest from $6MM – $6.2MM.

Click Here to see specific sales and values numbers for all four cities.

I hope you find these updates helpful and informative, and I welcome the opportunity to speak with you. Please feel free to reach out. Wishing you only the very best in 2016!

December 1st, 2015 | Author: Dave Kibbey

Will 2016 tip back to a sellers’ market?

I hope you all had a nice Thanksgiving, my wife and I stayed home this year and enjoyed quality time with family and friends, and also enjoyed our gorgeous desert weather.

Happy December, it’s hard to believe this year is almost over.  As you can see season is in full swing with everyone in town escaping frigid winter temperatures in other areas of the world. For Dave Kibbey & Associates this year has been another stellar year with a substantial number of listings and sales, with our sales numbers outpacing last year’s numbers by 20%. Why? – I believe it is due to our priorities; Market knowledge – understanding the market intimately, being authentic, always telling the truth no matter what, consistent quality marketing, and working smart and staying focused on bringing our clients objectives into reality. We are thankful and grateful to be able to help so many people achieve their real estate goals.

Do your New Year goals include buying or selling a home?   If so, it is important that you understand that our desert area real estate market is healthy, though our market is not consistent with Orange County, Los Angeles, or the Bay area markets. As I write this letter inventory has climbed with seasonal inventory levels HIGH, and it currently remains a buyers’ market with overall values down year over year! If you have been thinking of buying a home in the desert, get out and take advantage of this market and pull the trigger now. There are many opportunities to take advantage of. Think about it… inventory continues to outpace buyer demand, mortgage rates currently remain historically low, and many sellers are priced well and ready to negotiate. There is not a better recipe to get a great buy? According to Bank of America lending, fluctuating mortgage rates depend on year-end jobs report. If more people are working, mortgage rates will rise, if jobs remain the same rates will likely stay the same.

If you’re thinking of selling your condo, home, or estate property, the likelihood is I will sell your property this season as long as you are; ready,  realistic with your expectations of the market, listen to my advice and what the market is telling you, and are willing to adjust if needed based on market conditions. Luxury home sales are currently slow and we’re all hoping buyers will come out of the woodwork early 2016 taking advantage of many crème of the crop luxury properties available. Yes… trophy homes will sell for more, substantially more at times, though your trophy home must be unique, offer significant WOW factors, and be highly desirable. Our trophy home prices remain DEALS compared to Orange County and Los Angeles prices.

I hope you find this information helpful. If you have questions, or you have been thinking about buying or selling, please do not hesitate to reach out to me. I welcome the opportunity to help you achieve your goals now or in the future. Click here to view specific sales, values and “days on market” in all price segments.

Wishing you all a Merry Christmas, Happy Holidays, and a Happy Healthy 2016!

All the best!

November 1st, 2015 | Author: Dave Kibbey

Will the market progress positively or take another dip?

Awe… this cool fall weather is so refreshing. Our beautiful desert is popping again, our winter rye lawns are beautifully green, our streets, stores, restaurants are packed, and the holidays are approaching quickly. Where did this year go?

Well… Dave Kibbey & Associates has been very busy with another very successful year helping buyers and sellers achieve their real estate goals.  Dave along with his fully licensed team of professionals is listing and selling record numbers of real estate in all price segments. Buyers and sellers are butting heads, so negotiating deals can be tough and have to be put together with knowledge and skill, keeping the focus on the big picture. Some uneducated sellers have set their expectations too high, and most buyers can see and appreciate high inventory levels, and understand in most price segments it’s a buyers’ market.  As I stated in last month’s market update, year over year the $1.5MM – $2.5MM price segment [in the areas of Rancho Mirage, Palm Desert, Indian Wells and La Quinta] is the only segment that has consistently outperformed 2014 numbers both in sales and values. All other price segments experienced a slight dip. Why? Simple… when inventory continues to outpace demand, sales and values dip.  What made matters worse was the dramatic dip in the Canadian dollar. Even though Canadians consist of approximately 8% of our buyer market, inherently conservative Canadians have put the brakes on with buying for the most part, and many have decided to sell their desert homes, take the upside on their dollar conversion, and rent for the season until they see some positive changes in their dollar.

It is important that you understand the market has NOT as the old saying goes ‘gone to hell in a hand basket”, our market has improved generously, and is very healthy with considerable sales volume. Though until we see a significant jump in buyer demand, we will continue to see this unusual volatile trend, and buyers can feel comfortable taking advantage of a buyers’ market.   The likelihood is as we move into high season in early 2016, we’ll see seasonal inventory levels continue to rise to new heights, and unless of course we see a big jump in demand, the market will continue this erratic pace. The desert is and will always be a desirable major destination. We’re seeing quite a few new home developments throughout the Coachella Valley with homes selling, so overall we’re seeing a positive trend.

Buyers – NOW IS THE TIME to get out and take advantage of this market, while inventory is high and money is cheap. Mortgage rates remain historically low, and there are many desirable loan packages available in both conforming loan amounts as well as jumbo. While luxury home buyers usually pay cash, we’re seeing more buyers taking advantage of the great buys and historically low rates, and leveraging 50-60-70% of their purchase. Feel free to reach out to me for mortgage professional referrals, I work the best team of professionals in the business.

In closing be sure to log-on the www.DesertEstateHomes.com periodically and check out our listing inventory, I have many listings in the pipeline over the next 60 days, and some are over the top with WOW factor, many great values, and sellers are ready to deal. PLEASE feel free to reach out, we’re here for you. Click here to view specific sales, values and “days on market” in all price segments.

Until next update… wishing you, family, and friends a Happy Healthy Thanksgiving. We have so much to be thankful for.

All the best!

October 1st, 2015 | Author: Dave Kibbey

October 1st… the weather is cooling and before we know it high season will be here again with people from all over the world enjoying our beautiful desert weather. I’ve had a great year with very good sales numbers, along with time away in Hawaii and the Mountains. Life is GOOD. My business would not be what it is today without all of my great clients putting their trust in me to look after their best interests with real estate, the many referrals I receive regularly, and the genuine testimonials showing sincere appreciation for getting the job done. I have so much to be thankful for.

Some people have done well with their real estate this year and others have not. It all depends on when you bought your home, how much you leveraged the property, if any, and whether you have maintained or improved your property. With overall inventory levels remaining high causing stiff competition, if you’re thinking of selling, it pays to keep your home looking its best.

Year over year, both sales numbers and values in most price segments remain down slightly under 2014 numbers {with one exception; the $1.5MM – $2.5MM price segment, sales were par or slightly above 2014 and prices were up very slightly – To see numbers & values by area Click Here} Why? As you have heard before it’s all about supply and demand. Even though our market is GOOD, or significantly better than 3-4 years ago, buyer demand continues to lag behind seasonal inventory levels. What does this do for values? Unless your home is a highly desirable trophy home which usually beats all the odds and sells for more, sellers may sit on the market unsold, unless they pay attention to current market trends and “price it right”. It is highly likely each month as we move into season, inventory will continue to grow as sellers who held their expectations too high last season and didn’t sell, plan to re-list their homes at the same price or slightly lower to be sure it sells, in addition to new sellers desiring to move up, move down, or list their homes and move away from the desert. My advice… get a jump start and List NOW… ahead of seasonal inventory levels, and price it right. Especially if you’re planning to buy another home in the area after yours sells, knowing that it’s currently a buyers’ market, you can take advantage of these conditions and buy “right” now. Remember your recurring expenses such as property taxes are based on the price you pay for your home.

Demand will eventually outpace inventory levels, and prices will raise as history repeats itself, though with conditions as they are, impending presidential elections, and economic uncertainty, I’m not confident we will see any significant changes anytime soon. If you have been thinking of buying or selling, and you’re not sure what to do, I welcome the opportunity to meet with you, discuss your options, and help you determine what is best for you.

More news… We’ve moved into our new office located at 74-890 HWY 111 Indian Wells. I welcome you to visit our highly professional office. Dave Kibbey & Associates along with HOM Sotheby’s International Realty is a recognized synergistic winning team, committed to providing clients the highest & best levels of Professionalism, along with the best Valley-wide, Countywide, and International exposure to be sure your home gets SOLD for the highest dollar the market will bear.

Exciting times ahead… I look forward to talking with you.

All the best!

September 1st, 2015 | Author: Dave Kibbey

Happy September 1st…  It’s been a HOT summer as usual here in the desert, and we’re all looking forward to our beautiful fall season weather.

Knowing we’re moving away from summer and into fall, I continue to field lots of calls and inquiries about the market from people that want to sell their home this coming season.  Questions like; Will the market be stronger this season?  Do I think prices will rise this season?  What’s inventory like?  Are prices up or down?

I believe this season will be stronger in sales, especially under the $1M price point, as buyers who plan to finance their purchase know mortgage rates will be going up.  Moreover many buyers who have been thinking of buying and watching the market know about the volatility in the market, and the fact that values are down slightly from 2014 numbers in most price points.  They also know the market is in an upward swing and the likelihood is values will rise.  With that said we may have a great selling season for sellers that are realistic with their expectations and pay attention to what the market is doing.  Luxury home sales will likely be stronger this year as well, as many savvy buyers/investors who didn’t buy earlier this year are aware of the volatility in the market, can see and appreciate the great values out there.  Luxury home inventory will likely spike to new heights this season as sellers who didn’t sell last season come back into the market along with new sellers who want to make their move.

For you buyers out there… take advantage of this great market and lock up deals now before prices rise.

I’m excited about helping you achieve your goals.  Reach out to me…. and let’s figure out if now is the right time for you to buy or sell.

Please click here to view specific sales, values and “days on market” in all price segments.

August 6th, 2015 | Author: Dave Kibbey

It’s HOT… today 115 degrees and homes are selling. People do actually get out in this heat and buy homes, some looking for great deals, others looking for a replacement home because their home is in-escrow and they have to buy. I’ve had the pleasure to help 32 property owners achieve their real estate goals this year thus far, with two more in-escrow which is so gratifying. If you know of anyone who needs my help, please have them reach out, my #1 priority in this business is to help people achieve their real estate goals.

Central valley cities; Rancho Mirage, Palm Desert, Indian Wells, and La Quinta markets continue to flow with a healthy sales volume though both sales numbers and values remain down slightly from July 2014 numbers, with one exception. La Quinta out-paced the other three mid-valley cities in both sales numbers and values in the following price segments: $250,000-$500,000, $500,000-$750,000 and $1M- $1.25M, with most other price segments down slightly. Indian Wells being the most seasonal valley city  and having the highest median listing price was down in all price segments with the exception of the $1.5M – $2M. Palm Desert was up in the $500,000 – $750,000 range in both sales and values but down slightly in all other segments. Rancho Mirage was up in the $2.5M – $3M with one sale @ $2.935M, no sales last year, and all other segments down slightly year over year.

What does all this mean? It simply means were experiencing a dip in the market in an upward cycle.  I’ve indicated in previous updates; when the market finally gained momentum two years ago, inventory climbed to two year record levels as many homeowners decided to sell.  Buyer demand simply did not keep up, which is why to some people, including some agents felt the market seemed slow. The fact is the market is healthy and homes are selling, though sellers must be realistic with their expectations or their home will likely sit unsold. As we move through summer and into the fall/winter season, inventory will climb again as new listings come onto the market, in addition to frustrated seller listings that didn’t sell last season, and many will likely be value priced in an effort to be sure they sell this season. Once we get over the hump and inventory drops again, we will likely see both sales numbers and values increase, though we may not see this until sometime late 2016.

Median Listing Prices and Average Price per SQ-FT by City from high to low

1) Indian Wells               Median Listing Price: $995,000       Average Price per Sq-Ft: $310.00
2) Rancho Mirage           Median Listing Price: $789,500       Average Price per Sq-Ft: $254.00
3) La Quinta                   Median Listing Price: $599,000       Average Price per Sq-Ft: $236.00
4) Palm Desert (BIG)      Median Listing Price: $390,808       Average Price per Sq-Ft: $194.00

Please click here to view specific sales, values and “days on market” in all price segments.

News: Our Desert Area MLS – Association of Realtors has decided to get rid of the CDOM or “cumulative days on market” tab on all listings in our local MLS. Why? It’s never been accurate. For example if you had your home listed for any period of time, and your listing expired, or you cancelled your listing for whatever reason, your listing history may indicate an inaccurate total or cumulative days of all listing periods. Moreover you used to have to wait a 90 day period after removing your listing from the MLS in order to eliminate CDOM. Great news… we’ve been fighting for this for a long time and our board listened. Other changes with Mortgages. Besides that fact we all know mortgage rates have to rise soon, effective October 1st 2015 the Federal Government has increased regulatory demands on lenders, which will not only make mortgages harder to get with more conditions, it will take lenders on an average of two weeks longer to get mortgage loans approved and closed.

Finally, our new HOM Sotheby’s Indian Wells office is opening early September which myself and my team will be moving into. We will update you with our new address as soon as we move.

I hope you find these updates informational, and helpful in making informed real estate decisions. I welcome the opportunity to help you whether it’s now or in the future.

Enjoy the rest of the summer!

July 7th, 2015 | Author: Dave Kibbey

How’s the Real Estate Market over the 1st 6 months of 2015?

It’s hard to believe the 1st half of 2015 is gone – how time flies when you’re busy and enjoying life!

Summertime is here… the weather is HOT, and the population in our desert has dropped considerably as usual, as the snowbirds who peak our desert population in high season have all headed off to cooler climates.

Looking back from the beginning of the year, I’ve provided market updates every 2 weeks (covering my areas of expertise RM-Rancho Mirage, PD-Palm Desert, IW-Indian Wells, and LQ-La Quinta) indicating for the most part, both sales and values are down from 2014 numbers with a few exceptions. Let’s see how the numbers stack year over year (1st 6 months 2015 over 1st 6 months 2014).

Market – The market continues to chug along with considerably better sales numbers over three years ago, depending on who you talk to. Some say the market is bad, others says it’s good. This usually equates to who is selling, and who’s not! Since the beginning of the year I’ve sold 30 listings, have 2 in-escrow, and more in the pipeline, so you may want to pay attention to the facts and figures I have compiled below. The fact is the market is healthy and homes are selling every day, though the market has temporarily tipped back to a buyers’ market, so listing prices and value in the eyes of the buyer are a #1 priority. Many of the homes selling have had to correct their listing price to cause a sale. I’ve stated over the past few months that both sales volume and values are temporarily down in most price segments with a few exceptions, which creates opportunity for smart buyers in an upward cycle. Luxury home sales ($2M – $3M) happened to be one of those exceptions where sales this year have outpaced 2014 numbers… not a lot of sales but more than last year. As we move through summer season, inventory will likely continue to drop as many listings, especially most luxury home listings have been removed from the MLS for the summer. Why? Simply because 99% of buyers for these homes leave the desert, and do not come back till Oct/November, so leaving these homes on the market accumulating the number of “Days on Market” in not in their best interest. For example 6 months ago we had a 13.9 month inventory. We currently have an 8.4 month inventory. This number will likely drop considerably over the summer as more listings come off the market for summer, along with smart serious buyers (usually below $1M price point) brave the summer heat taking advantage of a buyers’ market.  Don’t forget… most of the Luxury homes removed from the MLS are still “For Sale” and available for any buyer to see & buy with a simple phone call to Dave Kibbey & Associates. We have 20 properties “pocket listings” from $1M up to $3.5M available, which are not currently listed in the MLS, and many can be found on my website – www.DesertEstateHomes.com. If you have an interest… please drop me a call.

If you’re thinking of buying a desert vacation home or simply stepping up or down in home size here in the desert, call me and I’ll be happy to get your home Sold, and help you make a great deal this summer on your purchase.  From $300,000 to multi-million dollar estates, I have the experience, skills, and team to handle any & all real estate transactions.

If you have any questions about real estate or this update. Please feel free to reach out to me. I’m just a call or email away.

Until next time… enjoy your summer!

Click here to see specific Sales, Values, and “Days on Market” in all price segments.

Here’s the breakdown:

$250K – $500K Sales are down in RM, PD, & LQ an average of 3.5%.  Values are down an average of about 2% while Indian Wells enjoyed a slight increase in sales and a 12% increase in value.

$500K – $750K Sales in all 4 Cities are down with the largest drop of 28% in La Quinta. Values overall in this price segment are down approximately 5%, although the amount of days it took to sell decreased by 10 days

$750K – $1M Sales numbers in RM, LQ, & IW dropped significantly… 40% this year over last year, while Palm Desert enjoyed a 30% increase. Overall values dropped approximately 1%, and it took slightly longer to sell a home.

$1M – $1.25M Overall sales dropped 27% while values stayed about the same. The amount of days it took to sell a home in this price segment increased about 6%

$1.25M – $1.5M Sales numbers dropped significantly in all 4 cities with the largest drop of 50% in Palm Desert. Good news… values are up, with the largest gain of 8% in Rancho Mirage.

$1.5M – $2M Sales stayed about par with the exception of a BIG jump in La Quinta from 16 sales in 2014 to 29 sales this year. Values increased in all 4 cities, with a largest jump of 7% in Rancho Mirage.

$2M -$2.5M Sales are down with the exception of Rancho Mirage, sales just about doubled from 3-5 sales. Values stayed about par, and the amount of days to sell were sporadic with the longest period of 271 days to sell.

$2.5M – $3M Sales increased in every city except for Palm Desert… stayed at par with 2 sales. Values dropped in each of the 4 cities by approximately 3.5%

$3M – $Up Sales dropped significantly in IW & PD with the largest drop in Indian Wells from 8 sales in 2014 to 3 sales this year. Rancho Mirage enjoyed an increase in sales this year, from 2 in 2014 to 3 this year, and La Quinta enjoyed good movement with 2 sales this year. The highest dollar sales were in Palm Desert averaging $6.2M up from $6M last year. Rancho Mirage also enjoyed a slight increase from $3,650,000 up to $3,750,000 all selling in less than one year.

June 17th, 2015 | Los Angeles Times

The Coachella Valley is heating up for investment. The Southern California Association of Govern­ments (SCAG) undertakes a variety of planning and policy initiatives on behalf of the region. Specifical­ly the Coachella Valley Association of Govern­ments (CVAG) has predict­ed a population growth to 604,000 permanent residences by 2020. This would constitute an in­crease in the population of permanent residenc­es by a staggering 27% in a mere 4.5 years (www.scag.ca.gov/documents/riversidecvag.pdf).  View the (CVAG) web site at (www.cvag.org) to obtain the facts on the CV/Link that is a project that would con­nect all cities in the Valley with a safe and continuous pathway system. This proj­ect is projected to have an economic benefit to the Valley estimated at $1.47 billion.

Gentlemen like Mr. Larry Ellison, who is one of the richest men in the world, ob­viously is renowned for his ability to spot market trends and get in early.  Mr. Ellison has staked a large position in the Coachella Valley by way of his purchase of the BNP Paribas open in 2010, and has since built a second st­adium next to the existing one. This purchase has earned him the title of owning one of the top tennis tournaments in the world. Mr. Ellison found­ed the software giant Oracle in 1977. If you would have asked him then, if he thought that he would end up owning a tennis tournament that had just moved to the Coachella Valley a year prior in 1976, who knows what his answer would have been. Mr. Ellison preceded this investment in the Valley by purchasing a 249-acre golf estate, which recently hosted President Barak Obama on his estate’s private golf course.

When “common investors” were asked where they invest a typical answer was “where they have identified large money investment being made by billionaires, who have the uncanny ability to spot trends early”.

In the Coachella Valley as a whole, not many signifi­cant projects have been con­structed in the past 20 years that could have enhanced amenities and hospitality opportunities for visitors. However, over this 20-year period what has happened is, world-class venues / events have been developed and have achieved massive growth. Beyond the tennis, the Valley boasts many other world class venues / events. The Coachella Music Festi­val and Stagecoach which hosts several hundred thou­sand guests each year, who come out to see some of the biggest music artist on the planet. Additionally, there is the famous Bob Hope Clas­sic annual golf tournament (renamed the Humana Chal­lenge) that was sponsored by the Clinton foundation this year. The Valley is also home to world class equestrian show jumping events and is known for one of the richest Grand Prix’s in horse jumping. There are 6 world renowned golf courses know as PGA West that have gained enor­mous notoriety (located in La Quinta). Other major  events / venues include BMW’s test track (car racing), Palm Springs International Film Festival, Fashion Week El Paseo, and the Empire and Eldorado Polo Grounds host­ing enthusiasts who frequent from all around the world. This is just a handful of the events and functions that happen each year. The Palm Springs airport is expanding to accommodate the demand.

The Palm Springs walk of the stars has been dedicated to the many Hollywood Stars who lived, loved and played in this beautiful oasis called Palm Springs. It is common to see famous celebrities blending with the tourists and locals. As only one of many indicators that the Valley is attracting a younger clientele, Leonardo DiCaprio recently purchased an estate home in Palm Springs.

The 3 main summer months in the Valley (June – August) are growing in popularity not only because of the pool par­ties and other events that are hosted at places like the Hard Rock Hotel Palm Springs, but also because of the outstand­ing accommodation packag­es that are available. Hey, who said you need to spend a fortune to visit an oasis and work on your tan? In the sun, or out of the sun, there is something for everyone in the summer months. With conve­nience of travel to the Valley and the great prices, sum­mers in the Coachella Valley are more popular than ever.

As the Valley consists of 9 adjoining cities, the one city that is now taking the lead on revitalizing the entire Valley is Palm Springs. In addition to the new hotels under con­struction, Mr. John Wessman, who has been a developer in the area for 40 years is one of the largest local developers, and is now under construc­tion with a dynamic project in downtown Palm Springs. The most important part of Mr. Wessman’s, 14 acre devel­opment, as related to tourism, is the addition of thousands of square feet of shopping and restaurants.  Many are saying that this development reminds them of “The Grove” shopping and entertainment district in Los Angeles.

In Palm Desert, the El Paseo shopping destination is usually referred to as the “Rodeo Drive of the Desert”.  El Paseo hosts stores such as Louis Vuitton, Saks Fifth Avenue, Gucci, Ralph Lauren, Tommy Bahama’s and the Apple Store. With this ad­dition of Wessman’s trendy, hip, shopping area, which is presently under construction, this is great for the Valley as a whole. Others that have re­cently opened and are popu­lar in the Valley are Mastro’s Restaurant, Whole Foods Market and Nordstom Rack.  The Ritz-Carlton just opened its doors in Rancho Mirage in May, 2014 and now a 6 star, $100 million dollar develop­ment has just been approved that is located at the base of the mountain, in which the Ritz Carlton is situated.

Actor / Economist Mr.  Ben Stein presented a compelling speech at the economic summit held in Rancho Mirage on March 27, 2015. He told the crowd that hospitality and health related projects will lead the way in commercial development in the Valley. He also mentioned that he has owned a home in the Valley for many years (as many celebrities have) and this was his place to, in es­sence, escape the “hustle and bustle” of Los Angles and find tranquility and recharge. Mr. Stein indicated that the new focus for development in the Valley will happen East of Washington Street. The City of La Quinta borders Washington Street to the East and has one of the high­est per household income statistics, in the entire Valley and is surrounded by many of the world class venues / events previously mentioned. It is expected to become one the highest sought after areas in the Valley for new developments. Out of every­thing that Mr. Stein talked about at the economic summit, the one thing that really seemed to resonate with the large audience was the reference that when you are in or around Los An­geles and don’t feel like spending a day to travel, to Hawaii for example, then you can jump in your car and drive to the Coachella Valley.

Approximately twenty five million people live within a 2.5 hour drive of the Coach­ella Valley. When you want a convenient “get away” with consistently great weather, then discover the Coachella Valley. At least in the Coach­ella Valley you do not have to gamble on your vacation being spoiled by rain.

Another company in the Valley, the Saxony group, is one of the largest landown­ers with over 1,250 prime acres situated throughout the Valley. The Saxony Group is excited about their 505 suite, extended stay rental apart­ment project that includes a blues and jazz themed en­tertainment street hosting 8 restaurants, 2 coffee shops, art gallery and a  central out­door stage. This property is located in the heart of La Quinta with Highway 111 ex­posure. The Saxony Group will be in the market within the next 2 weeks interview­ing for a 50% partner for this project. A representa­tive from Saxony indicated that for a company looking to fast track into the oppor­tunity existing in the Valley – here it is. We visited this 22 acre site in La Quinta that will host this development and it is truly stunning. The Saxony Group will be fielding inquiries from companies on this opportunity via email at info@saxonyusa.com and through their head office at (760) 568-1222.

Here and now, the Coachella Valley has what many are identifying as great buying op­portunities for the potential investors / home owners. After the last downturn in the world economy in 2008, Cal­ifornia real estate prices got hit hard.  As California has al­ready started its recovery the coastal communities are full steam ahead and the Coach­ella Valley has lagged and many feel, with all the existing facts, that it will start its run in the third quarter of this year.

When you put all of the pieces to the puzzle togeth­er it seems to depict a clear market realization that the Coachella Valley, is “ripe” for investors / home owners – right now. So whether you are interested in purchasing a stunning estate home, or even a golf course condo­minium, it is the prices, the 350 days of sunshine a year and the postcard views that might prompt you to take a look at the Coachella Valley.

June 15th, 2015 | Author: Dave Kibbey

Summer is clearly here with the desert heating up to 115 degrees today. Laughing…. I always tell people from other areas there’s a lot to be said for summer nights in the desert, especially when you’re enjoying your pool. The days are find too… as long as you’re in your air conditioned house, office, favorite restaurant, car, store, theater, or… in your pool. Snowbirds are all off to cooler regions throughout the west and other parts of the world, and the market continues to chug along with no fluidity. Sales are slow with higher inventory levels continuing to outpace demand. A fair amount of properties are selling, mainly $900,000 and below and happen to be either good buys or an over the top amazing or unique property.

It’s certainly not a bad market, just not a great market. I’ve had a good year thus far, since Jan 1st  I’ve Sold 24 properties in price points ranging from $250,000 up to $2.5Million, and have 4 in-Escrow, though  it certainly hasn’t been easy. What’s interesting is that many of the price points that were not performing in 2014, for example $1M -$1.5M performed well this year, and last year you couldn’t give them away. As I’ve indicated in previous updates 2015 sales year over year have dropped anywhere from approximately 5-25% depending on price segment and area, and in most segments values are also down anywhere from 2-10%. Both agents and sellers thought sales this season would be better and continue to improve. Talking with agents and clients from along our California western coastal regions from San Diego up to Santa Barbara, there is little to no inventory, and many properties are selling above asking with multiple offers. This is certainly NOT the case here in the desert. With volatile levels of seasonal inventory, along with lower levels of buyers demand, many homes have been sitting upsold for months. Furthermore in order to sell, many sellers with high levels of motivation, have had to do one or more price reductions to bait buyers who seem to have low levels of urgency, clearly see the volatility in our market, and are well aware the market has tipped back to a buyers’ market.

Knowing this presents a great time for buyers who have been thinking of buying, to get out and pull the trigger. Also a good time for sellers who have been thinking of selling and stepping up to a different property. It is easier to make a lateral move, and get a good buy on your replacement property. After all recurring expenses like property taxes are based on your new sales price, so taking less on your sale and in many cases getting a great buy on your purchase can not only make up the difference in some cases on your sale, but also keep your property taxes down.

Looking at today’s market trends, inventory in every desert city is dropping. Naturally we see inventory drop in the summer, though this week inquiries and sales are starting to pick up, as I have 3 offers sitting on my desk as I write this update. Knowing all of the above-mentioned, I believe we may have a busy summer. If this is the case, we will likely see inventory levels drop back into healthy ranges, prospective buyers will see this movement, buyer urgency levels will increase and we will experience a healthy market again.

I hope you find this information helpful. Please feel free to reach out to me if I can help you regarding any real estate matter.

Until next time… Stay cool!

June 1st, 2015 | Author: Dave Kibbey

Good news – The desert is heating up, and it’s that perfect time to enjoy our pools without heating them. Sunny warm days close to 100 degrees and cool mornings & evenings in the low 70’s, one of my favorite months of the year.

Not so good news – For those of you with homes currently listed for sale, you are feeling the pain and frustration of dropping prices due to higher levels of inventory around you, and a clear lack of buyers and urgency. It’s a tough market here in the desert, and I do not see any quick changes anytime soon.  We continue to see volatility in the market with high levels of inventory, and a very sluggish buyer pool.  As I have suggested throughout this season, the market has clearly tipped back to a buyers’ market and buyers are well aware of it. There seems to be little to no urgency on their part, and they are tough in negotiations. There is no fluidity in the market with some price segments selling and others sitting. Sales numbers and values are down in almost every price segment, some quite significant.

Here are some examples:

$250,000 – $500,000 Price point
Year over year (May 2015 over May 2014) sales are pretty consistent with one exception – La Quinta (May 2015 over May 2014), sales are up 23% over 2014, although the median sales price dropped 12%.

$500,000 – $750,000 Price point
Year over year (May 2015 over May 2014) in Rancho Mirage sales are down 49% and values are now down 2%. Another BIG drop in sales in La Quinta, down 45% from 30 to 16 with an approximate 2% increase in median sales price.

$750,000 – $1Million Price point
Year over year (May 2015 over May 2014) significant drops in both Rancho Mirage and La Quinta, RM- Sales dropped 49% and values dropped 1%. LQ-Sales dropped 40% and values dropped approximate 2%.

$1 Million – $1.25 Million Price point
Year over year (May 2015 over May 2014) significant drop in Palm Desert 3 sales last May, no sales this May. Significant drop in La Quinta – 7 sales last May and 2 this May although values rose 12%.

$1.25 Million – $1.5 Million Price point
Year over year (May 2015 over May 2014) Rancho Mirage sales double from 3 to 6 although values drop 2%. Zero sales in Palm Desert year over year. BIG drops… 75% in both Indian Wells and La Quinta, 4 sales last May and only 1 sale this May.

$1.5  Mil lion – $2 Million Price point
Year over year (May 2015 over May 2014) Indian Wells had 2 sales last year and no sales this year. BIG gain in La Quinta – 2 sales last May and 8 sales this May, although values dropped 13%.

$2 Million – $2.5 Million Price point
Year over year (May 2015 over May 2014) Sales were consistent with the exception of La Quinta experiencing a 50% drop in sales, and an approximate 4% drop in value.

$2.5Million – $3 Million Price point
Year over year (May 2015 over May 2014) Dead Zone with the exception of 1 sale in Indian Wells.

$3 Million and Up Price point
Year over year (May 2015 over May 2014) Sales were pretty consistent year over year with the exception; Indian Wells sales are down from 3 last year to 1 this year and values averaged 25% lower than the 3 that sold last May.

Naturally we will see inventory drop over the summer, mainly the high-end $$$. We continue to see quite a few buyer inquiries, and hope to have a strong summer washing out inventory levels so we have a clean fresh start in the fall. Positive thoughts… the market will improve over time!

If you have questions or concerns, have been thinking of buying or selling, please feel free to reach out to me. My #1 goal is to help YOU achieve YOUR goal.

Please click here to view my current market trend graph.

May 15th, 2015 | Author: Dave Kibbey

Why is buyer demand down from 2014?

I’ve had a very successful but tough year thus far and now drawing toward the end of season, I along with many other agents continue to do our best to manage some frustrated sellers expectations; “I thought the market was improving? Where are the buyers this year? What will it take to get my home sold? Why must I reduce my price? What do you think will happen over the summer?

There are various reasons why the overall number of sales this year have dropped off from 2014, when we all expected the market to continue to improve. As we look back in history, moving closer to presidential elections can tend to slow sales down, along with concern over the economy. As the market gradually improved and more homeowners decided to sell based on positive signs in market momentum and growth, many sellers and agents simply set their expectations too high. Many overpriced properties slowed the momentum in the market and inventory simply outpaced demand. The fact is an overpriced home today will likely sit unsold. Price is and always will be the #1 factor in selling your home, it simply has to make sense to a real buyer based on current market conditions, comparable offerings, and recently Sold properties. If you are not getting enough showings, not getting offers, and continue to sit unsold, create a meaningful price reduction campaign in an effort to protect your equity, and at the same time show buyers you want your home SOLD.

As I have reiterated in the past, I believe high levels of inventory and slow selling price pockets (example $700,000 to $1 Million) have not only concerned and frustrated sellers, its concerns buyers as well. Not only are there less buyers, there are little to no emotional buyers. Cash buyers know “cash is king” and great for negotiating better terms, along with very attractive mortgage rates & products. Pragmatic serious buyers understand this is a good time to buy, and want to buy right. They also know that Inventory levels will likely drop over the next year, and mortgage rates cannot stay low forever… so do not panic.  As usual much of the seasonal inventory will drop off the market for the summer, and many serious buyers will very likely continue to hunt the desert in high-heat to lock up good buys.

The low and high-ends of the market are performing best which makes buying in the mid-line pricing crème of the crop, and a total buyers’ market. If you’re thinking of selling and buying another home; either stepping up or down in how size, now is a very good time to make your move. You may sell slightly lower that you would like, but you can count on very likely getting a great buy on your purchase side… so it’s a trade off or lateral move. Click here to see an example of a killer deal in South Palm Desert.

In closing, I have some listings that have not yet sold this season with sellers that definitely want to sell,  and do not want to accumulate the number of “day of market” through the summer. If I do not sell these homes by the end of June, I’ll be holding some of them as “pocket listings” (not in the MLS) throughout the summer in a continued effort to help get them Sold.

If you know anyone thinking of buying or selling, have them reach out to me and I will be sure to look after their best interest.

Have an awesome Memorial Day weekend ahead!

May 1st, 2015 | Author: Dave Kibbey

BIG Hope for Spring Sales

Year (April 2014) over year (April 2015) in most price segments, we continue to see a slight dip in both sales numbers and values. The largest dip year over year was in Palm Desert, in the $250,000 -$500,000 range with 25% dip in sales and 3% dip in value (April 2014 – 101 sales/median price $328,000 compared to April 2015 – 76 sales/median sales price $319,000). On the opposite end of the spectrum, La Quinta continues to outperform the high-end luxury home market with three times the sales year over year and a 16% increase in values. The affluent see and appreciate the phenomenal values in this market, and many are pulling the trigger.

As stated in previous market updates, all four of the major down valley Cities – Rancho Mirage, Palm Desert, Indian Wells, and La Quinta are experiencing an overall decline in sales this season with the exception of a few price segments, and small drops in values in various different price segments; CLICK HERE to see details.

The story remains the same… inventory continues to outpace demand with higher levels of seasonal inventory remaining, and buyer demand has just not picked up as we had hoped for. Many have thought the drop in the Canadian dollar has been the main reason why we’ve experienced such a significant drop in sales, but the fact is this is only partially true, as Canadian buyers consume only 8% of the overall buyer market.

Personally…. I’m having a record setting year in both dollar sales volume and number of homes sold. Additionally I continue to field many buyer inquiries, take new listings, and receive listing inquiries from people aware the market is sluggish (simply from seeing all the real estate signs), and nervously awaiting the right market to sell. Many of the referrals I receive are frustrated sellers that feel they have not been professionally represented, are sick and tired of waiting for offers (probably over-priced), or have had their home fall out of escrow.

Here’s an interesting statistic; there are approx. 4,000 real estate agents throughout the Coachella Valley. Recent data indicates 94% of those agents sell 1-4 homes per year, and 70% of those 94% sell 1-2 homes per year. Anyone would question the level of experience an agent has selling 1-4 homes per year, and are they looking out for the overall best interest of the client? I would always hope so but frequently find this is not the case. Finally this leaves 6%, obviously the top agents listing and selling the entire lions’ share of homes valley-wide. Throughout the country, no matter what area or city you may be selling your home, be careful whom you choose to work with.

In closing this fact remains… late 2013/early 2014 the market tipped to a seller market. Because of this we started experiencing high levels of listing inventory, especially seasonal inventory. With high inventory levels and the drop in demand, the market tipped back to a buyers’ market. This cycle buyers are educated, cautious, and tough in negotiations. Why?… because they can be.  Here in the desert, and for the time being the emotional buyer is something of the past, and I cannot reiterate enough that value pricing is the ticket that will widen your market and get serious prospects through your door. With a plethora of inventory, buyers are picky so properties with any slight form of functional obsolesce will likely sell for less, and sellers must be realistic with their expectations or their home will likely sit unsold. Until we see buyer demand pick up, prices will continue to be flat and in some price segments drop, depending on the level of demand. Hang in there, things will get better.

April 15th, 2015 | Author: Dave Kibbey

April Showers Bring Spring Flowers – Little rain so far, although as usual… both the temperature and the market appear to be heating up a bit, let’s hope this trend continues.  As we move through spring season towards summer, historically the amount of new listings drop considerably, and sales pick up, washing out high inventory levels and causing the market to level off.  As the market has gained momentum over the past two years, we‘ve continued to see higher seasonal inventory levels, and this year buyer demand just hasn’t been there to out-pace inventory. Hopefully over the next six to eight weeks we will see a heavy demand leveling out the market.

In particularly the $750K-$1M price segment which is normally selling like hot-cakes in high season, has been very slow in both Palm Desert & Rancho Mirage.  The $1M-$1.5M price segment valley-wide which was slow in 2013 and 2014 has picked up dramatically with sellers tired of waiting for the market to improve, and lowering their prices consistent with what the buyer market would deliver causing good momentum.  The high-end market $2M and up has been very slow with the best sales numbers in La Quinta.  I attribute increased sales numbers in La Quinta to more NEW high-end development in Tradition, Hideaway and Madison.  Second in line in Indian Wells is Toscana CC with BIG new home sales & re-sales.

Out of the four desert cities of my expertise; Rancho Mirage-RM, Palm Desert-PD, Indian Wells-IW and La Quinta-LQ; Usually LQ out-performs the other three cities in sales.  Over the past two weeks – RM has made a big jump  and out-performed the other three Cities with 45 In-Escrow, LQ right behind RM with 35 In–Escrow, PD with 24 In-Escrow,  and the smallest City of the three IW with 23 In–Escrow… great numbers for Indian Wells.

As for SOLD/Closed Escrows, please click here to view each cities sales statistics.

April 1st, 2015 | Author: Dave Kibbey

Is this the calm before the storm?

I hope you’re enjoying our gorgeous seasonal weather, there is so much going on this time of the year in our beautiful Coachella Valley; Tennis Tournaments, La Quinta Arts Festival (recently voted the #1 Art Festival in the country), and now the ANA Inspiration Tournament March 30th through April 5th (formerly Nabisco Dinah Shore).  Personally I love to hike our mountain trails throughout the desert. There is nothing like seeing the raw desert-scape in full bloom, and this year’s rain has brought a plethora of desert wild flowers, which makes my hikes even more enjoyable.

The Market – 2015 is getting off to slow start compared to 2014. Within my areas of expertise; Rancho Mirage, Palm Desert, Indian Wells, and La Quinta. We continue to see homes sell, but certainly not what we had hoped for this high season thus far. For example March Sales in $250K -$500K are down approximately 30% from 2014 sales numbers. Values in various price points below the $1.1M are up just slightly but very slow moving. Sales prices above the $1.1M price point this March are also down from March 2014. Sales above the $2M price point are far and few between with only three SOLD (within the four cities) this March in the $2.5M-$3M category, and only two homes SOLD above $2.5M. The single biggest change this March over March 2014 was in Indian Wells; the median SOLD price rose from $370,000 in 2014, to $417,000 this March, an approximate 13% increase year over year, and sales from year to year stayed at ten. (For detailed price point sales and median sales prices – Please click here to view the most recent trend graph).

As you know… for many years, Canadian buyers have played an important role in the dynamics of our desert resort market, and from my experiences and many of the agents I network with, due to the significant drop in their dollar (Canadian dollar today is worth $ 0.79 US Dollar) are either holding off on their purchases, or spending considerably less. Except for the highly affluent, Canadians seem to be holding off on their purchases until they see significant increase in their dollar which could take a few years… who knows? Moreover I’ve experienced a number of Canadians listing their homes in an effort to liquidate their US assets. The good thing is… the Coachella Valley always has and always will be a great place to live, and people from all over the world will continue to see, appreciate, and have a continued desire to live here.  Because of this, buyers from all over the world; California coastal areas, the northwest, and many other areas who have always wanted to get away from the COLD, own a home in our desert paradise, and enjoy our temperate seasonal climate will continue to take advantage of the lifestyle our desert has to offer, and see the BIG value in buying this year. Many of the people who live in the Coachella Valley, like some of yourselves, who visited here at some point, and quickly decided this was the place they wanted to either live year around, or own a home they can use seasonally. Hang in there… the market will continue to improve.

As you know… I work very hard toward at getting your home SOLD at the highest price the market will bear.  I’m constantly studying the market so I can best represent you and your asset, and I implement effective marketing techniques to provide the Highest & Best exposure in an effort to generate the right qualified buyer for your home. My #1 priority is to protect your equity, #2 keep you informed throughout the process, and #3 get your home sold for the highest price the market will bear and as quickly as possible. Year to date thus far I’ve had another great year with just under $13M in sales so far, 15 properties SOLD, and seven In-escrow. We continue to receive quite a few buyer inquires, and showing calls seem to have picked up over the last week. Let’s hope we see an explosion in the market with BIG late season sales. If we do, inventory levels will drop to more moderate levels, and we will likely see some appreciation early next year.

I hope you have found this information helpful. Should you have any questions, please feel free to reach out to me… I’m only a phone call away. Enjoy the rest of the season.

March 17th, 2015 | Author: Dave Kibbey

As time fly’s by right on through high season, there are many things to be grateful for, two of which immediately come to my mind when thinking about real estate. 1) Our gorgeous desert weather that has and always will bring people from all over the world to enjoy our clear skies and warm sunny days. 2) Movement in all price segments of the market, some segments better than others, but there is some momentum building.

Here are some examples of movement in the market within my areas of expertise; Rancho Mirage, Palm Desert, Indian Wells, and La Quinta. Price segments below indicate % of change over the past 30 days Feb 15th – March 15th month over month in these 4 areas combined

Price Segment                                   Percentage of change                    Number of sales               Median
$250,000 -$500,000                         22% increase in sales                    168 sales                          $360,000
$500,000 – $1M                               32% increase in sales                     91 sales                           $680,000
$1M – $1.5M                                    34% increase in sales                     17 sales                            $1,175,000
$1.5M – $2M                                    20% decrease in sales                    10 sales                            $1,725,000
$2M – $2.5M                                    30% decrease in sales                    2 sales                              $2,100,000
$2.5M – $3M                                     Par                                                 2 sales                               $2,722,500
$3M – or more                                  60% increase                                 3 sales                               $3,375,000

I cannot reiterate enough… for the most part today’s buyers are educated due to a plethora of online public information available to them, and  continue to  be very sensitive to price and continue to demand value. I have had very good sales volume this year to date with 15 properties SOLD, along with 5 currently in-escrow and most of these transactions have required multiple counter offers in order to pull successful deal together. With currently a high volume of inventory levels, it is prudent your home is in it’s in highest & best tip-top shape, priced aggressively, and the least amount of personal belongs and clutter as possible, and serious buyers will see and appreciate this value and are more likely to make an offer. NOW is the time.

Positive thoughts as we move through season. Stay well and enjoy all that our beautiful desert has to offer.

March 1st, 2015 | Author: Dave Kibbey

Wow…. Season is flying by and we’re already in March. Over the month of February, the real estate market stayed somewhat flat. Sales were mediocre and seasonal inventory in most price segments continues to rise. I have ten properties in escrow, and that is monumental these days with overall slower year to date sales this season. We are experiencing slower low-end sales this year with inventory up, and increased high-end sales year to date with inventory down.

For the most part, there is really good inventory out there for buyer prospects. We have all but lost our Canadian buyers due to the significant loss in their dollar, and many Canadians have decided to sell. In other words; the cream of the crop inventory is awaiting savvy buyers.

In 2013 & 2014, seasonal inventory in the $1 Million & below price point was lower along with better sales numbers.  The opposite has occurred this year with $1Million -$3Million sales up and inventory down.  Another interesting factor we experienced over the past two years, was late season sales… significant increases in sales mid-late March through June. Of course we’re all hoping to see that same trend this year which would clean out some of these higher levels of inventory. It is likely we will continue to see price reductions right on through into summer as motivated sellers correct their prices to make their move.

I hope you find this information valuable, and please feel free to reach out if you have further questions and enjoy our gorgeous desert weather.

Please click here to find my updated chart for February 2015: Sales, Inventory, Average Days on Market, and Median Sale prices.

February 18, 2015 | Author: Dave Kibbey

Its high season… the weather is postcard perfect as usual, population is high here in the desert with seasonal owners and visitors coming to our desert paradise like wildfire.  Many are in town for modernism week, streets are busy and lines and reservations are needed at most of our local restaurants.

It appears likely this year will be consistent or slightly better than the past two year’s sales trends.  Even though there is a relatively strong sales demand today, it is likely we will see late season sales demand picking up in March, especially in price points above $700,000 up into the multi-million dollar luxury market, finally pushing down high levels of seasonal inventory.  I continue to reiterate today’s buyers are cautious, educated, and value and price sensitive.  With all of the online tools and property search portals available, these websites provide prospective buyers valuable information about pricing, past sales history, cumulative days of market, virtual tours and aerial mapping which helps them with north/south/east/west orientation, providing today buyers with ammo to make informed decisions.

My experience with recent sales has been in some cases tough negotiations, with two to four Counter Offers to pull solid deals together.  I currently have ten properties in-escrow, a few in the $400,000-$600,000 range, but most in the $1.2M – $1.5M price points which is nice to see these higher-end homes now selling, and quite a relief to those sellers to finally be in-escrow and looking toward their move.  Smart owners that have been sitting on the market unsold 45-60 days who have done nominal price reductions; 3-5% and in some cases 10% with luxury home listings are stimulating their listings, generating serious buyers and in many cases selling their homes.

There are pockets in selling prices today for example; $200,000 – $600,000 homes are selling, $600,000 – $1Million are very slow selling, $1.1M – $1.6M are slowly moving and the higher end luxury market is currently sitting with few sales.  Again… I believe we will see stronger sales March through June, but not confident theses homes will sell without a fight on their hands in negotiating a mutually agreeable price and terms.

Positive thoughts ahead, keep a smile on your face, and please feel free to reach out to me if you have any questions or concerns.

February 3rd, 2015 | Author: Dave Kibbey

High season is here with some of the finest weather anywhere in the world , we’re already into February and Valentine’s Day is right around the corner… don’t forget that someone special in your life. For those of you interested in Modern architecture, Modernism Week is being celebrated Feb 12-22nd in various locations and open houses throughout the valley. Be sure to “Google”- Modernism Week, and check out the events calendar celebrating some of the most significant & unique Mid-Century & Modern Homes, Hotels, Club Houses, and Church’s throughout the valley designed by noted architects; William Cody, Quincy Jones, Donald Wexler, Palmer & Krisel, Alexander, Albert Frey, Stewart Williams, Hugh Kaptur, John Lautner, Richard Neutra, and Paul Williams. I’ve recently listed one of the most significant architectural homes in the desert, designed by noted architect William Cody in 1973, and known as his Masterpiece.  Situated in the Tamarisk CC area of Rancho Mirage, on a large elevated south facing double fairway lot. An exciting and unique fusion of Modern & Hacienda (71051 Tamarisk Lane in Rancho Mirage). Come on out and bring your friends who love & appreciate the clean lines and open spaces Mid-Century & Modern homes offer, along with two more homes in Palm Desert and Indian Wells I have listed. We will be sending out E-Blast invites with open house dates for these homes, as well as other fine desert homes. Click here to view the link to Modernism Week 2015.

MARKET – The Real Estate market in most price segments throughout my areas of expertise; (Rancho Mirage, Palm Desert, Indian Wells, and La Quinta) continues to improve with good sales levels, and high but decreased inventory levels over January. The $500,000-$750,000 & $750,000 -$1 Million price points have the highest inventory levels and slowest (sales) absorption rates valley wide. With slower sales & higher inventory levels in this popular price range, sellers (listings) that have been on the market over 30 days with no offers, will either have to be patient with the market, or seriously consider a nominal price adjustments to appear as a value in the eyes of today’s serious and educated buyers. Where are our buyers coming from? Many are locals taking advantage of the market (stepping up or stepping down) depending on their particular need, along with our continuous flow of seasonal buyers coming from along the SoCal coast on up into the colder regions of Oregon, Washington, and Alaska seeking warmth and sunshine.

Canadian buyer’s sales have dropped significantly with an approximate 23% drop in the value of their dollar as compared to the US dollar. Inherently conservative Canadians appear to be are holding on to their money, or simply spending less, and in some cases selling their US assets.

The good news, overall our local market continues to improve with relatively high levels of more confident predominately cash buyers seeking well to fair market value, along with continued amazingly low mortgage rates and new loan products widening our buyer interest. These factors will likely continue to stimulate the market for good long-term gradual sales growth and values here in the desert.

Being born and raised here, and living in the desert for almost 55 years, I’ve seen the desert continue to grow because of its unique natural beauty and wonder, and I believe our Desert location no matter what will always be a desirable place to call home for either seasonal or full time homeowners.

Positive thoughts as we move on into high season. See below for more detailed inventory levels, median sales prices, and average DOM (days on market) from Listing to Sold. Again, these are averages covering the following areas:

Rancho Mirage, Palm Desert, Indian Wels, and La Quinta

Price Point                     Months of Inventory                 Median Sales Price                  Days on Market
$300-$500,000             9.2     Down                               $387,000                                  116
$500-$750,000             14      Up                                    $630,000                                  113
$750,000-$1M              16.2   Up                                    $875,000                                  106
$1M – $1.25M              11.9    Up                                    $1,097,000                               110
$1.25M – $1.5M           11       Down                               $1,387,500                               162
$1.5M – 1.75M              5.4     Down                               $1,549,000                               162
$1.75M-$2M                  7.5     Down                               $1,825,000                               142
$2M – $3M                    14.5   Down                               $2,300,000                              123
$3M & up                       28      Down                               $3,300,000                              434

Please click here to view current inventory levels.

Should you have any questions, please feel free to contact me, I welcome your call.

January 12th, 2015 | Author: Dave Kibbey

Wow…these weeks fly by like days.  Moving into season I’m getting a fair amount of showings, interestingly enough… most on my lower end listings ($300,000-$500,000) and high end $1,200,000 and up, but it’s been quiet in the $600,000 – $1.2M range.  Good thing is, we continue to field quite a few daily inquiries, and also continue to get a good amount of internet hits which shows there’s a pulse.  As I mentioned last week were dealing with relatively high inventory levels, but as long as seasonal demand outpaces inventory, we’ll be fine, and in escrow soon.

Please feel free to reach out and call me if you have any questions or concerns, and have a great week.

January 5th, 2015 | Author: Dave Kibbey

Hello and Happy New Year!

Starting off our new year is a time to reflect on all of the good we experienced last year, our misfortunes last year, and what we will do differently in 2015 to have an even better year. I know that some of you have listed and sold, others have fresh new listings and are excited about making a move sometime soon, and others who may be a bit frustrated with the fact your home has not yet sold. I have high hopes your home will be in escrow soon so you can make your move, and I will do everything in my power to fight hard to protect your equity, and get the job done as quickly as possible.

Yes… we’ve seen some significant changes in the market over the past two years, buyer confidence has increased, mortgage rates continue to remain historically low which has whet the appetite of many who needed or chose to leverage their purchase, and in some cases we’ve seen significant increase in values mainly in the low-end housing market. Additionally we continue to see more and more new housing developments pop up throughout the valley which indicates overall confidence in the market.
The fact is even with improvement in the market, and a relatively strong level of buyer confidence, the market remains volatile. We all know the Feds have to increase mortgage rates soon which is a good sign to push real buyers into making a move sooner than later to simply remain affordable in today’s market. As long as demand stays strong the market will continue to flourish. Additionally there continues to be a pent up interest in seasonal cash buyers that are both anxious and cautious… an interesting mix of mindsets. These buyers will likely buy this year, but are very value and price sensitive.

Properties selling today are either a 12 on a scale of 1-10 (in other words amazing properties), or they are clearly priced right and a great value in the eyes of a buyer. Buyers today have amazing amounts of information available at their finger tips, and the internet has more websites and public information they can study from than you can imagine. The fact is most buyers are prepared, know the market, know the comps, and have previewed photos, virtual tours, maps, and title information before they even walk through your home. In order to generate traffic and sell your home today, you MUST be a great value in the eyes of the buyer.

Finally… Season historically brings higher levels of inventory, although of serious concern today, I’m seeing huge spikes in inventory levels (see attached) which could certainly cause values to drop if buyer demand does not stay consistently strong to absorb these levels. I believe 2015 will be another stellar year in real estate, and properties that are priced well will sell. Remember… you may be selling to buy another home. If this is the case, be willing to give on the selling side and we’ll do our very best to pick up your loss on the buying side.
Wishing you positive thoughts, good health, and much prosperity in 2015. I will continue to keep you updated bi-weekly. Please do not hesitate to reach out and call if you have any questions or concerns.

Here’s to a quick sale this year!

Please click here to view current Inventory levels.

October 28, 2014 | Author: Dave Kibbey

Wow… how time flies by, I cannot believe we’re moving into November next week, and the Holidays are right around the corner.

Overall the market is relatively flat with no big changes over the past couple weeks. Inventory (the amount of homes on the market) is currently on the rise at 8.3 months. What does this mean to you?… It simply means that currently it could take 8.3 months to sell your home if you’re not price positioned ahead of the market. Of course there are variables with the amount of inventory based on price point, so it is important that you understand the current inventory level is an overall average. The lower the price point, the lower the inventory, the higher the price point, the higher the inventory. Yes… we anticipate demand will increase dramatically this season which may sell much of this inventory, although as we move toward 2015 season we will also continue to see seasonal inventory levels grow. This trend is historical, and we will likely continue to see this trend until demand outpaces inventory which we’re hoping to see late 2015, early 2016. Low-end housing is moving quickly and high-end housing is moving quicker… as long as buyers see value in the property and price. I’m seeing a trend in the above $2M+ properties starting to sell now which is very good news, and encouraging to luxury home sellers that have been waiting for a long time to see positive movement in the luxury home market.

I have been very busy taking listings, and my sales are VERY good as well. Frankly there is a BIG pent-up buyer interest out there, as buyers (especially luxury home buyers) have been sitting on the fence patently waiting to feel a higher level of confidence in the market to pull the trigger, causing some to finally sell. I remain positive and believe this coming season we will see quite a lot of luxury homes sell, creating the trickling down effect we’ve been looking for.

I hope these updates provide you valuable information to keep you “In the know”.

Until next time enjoy this gorgeous fall weather!

September 30, 2014 | Author: Dave Kibbey

How refreshing it is to see our fall desert weather cooling, opening doors and letting the fresh air in, I love this time of the year.

Our real estate market continues to chug along in a positive direction. No big changes over the past couple weeks, and our inventory (the amount of homes on the market) had dropped over the summer giving our market a new much needed shot in the arm.  As the weather cools and people are thinking ahead, the market is currently tipping again toward more listings than sales. This was predictable, and as the market continues to improve we will continue to see people taking advantage of these times in an effort to achieve their real estate goals. Whether it be stepping up to a larger home, stepping down to a smaller home, moving out of the desert,  and with the markets appreciation many sellers that used to be under water with their mortgages can also sell now. There are a bunch of reasons as to why there are many people that are now ready to sell and move. As an example… I alone, as of today have agreed to take 21 new listings that will be hitting the market over the next 60 days.

Over the summer, many days the amount of sales exceeded the amount of new listings coming on the market which drew high levels of inventory down, in addition to some high-end sellers removing their homes from the market for the summer which gave our market some new momentum. As I’ve stated before I expect to see a large seasonal inventory spike come Jan – Feb 2015, so now is the time to beat the competition and get your home SOLD. I’m hoping seasonal buyer demand is high so we can get your home sold quickly, and sell the standing inventory… especially those home sellers above the $1.2M price point, many of which have been frustratingly sitting unsold simply due to low levels of demand.

I’ll be updating again at the end of the month, until then get out and enjoy our beautiful fall weather.

September 17, 2014 | Author: Dave Kibbey

The market and weather remain HOT! Temperatures remaining above 105 degrees (I’m looking forward to that cooler fall weather) and the market continue to march on. Homes sales below the $500,000 price points are selling within 90 days, homes sales between $500 – $1M are selling within 120 days, home sales between $1M-$1.5M are selling within 140 days,  home sales within $1.5M -$2M are selling within 160 days, and homes sales $2M and up are selling within 200 days. Inventory remains flat with levels 24 months ago with less volatility through the summer months. Price is a major concern for all buyers who are educated on the market with their easy & user friendly access to information online these days. The homes selling are all priced well and within comparable sales numbers. As we move towards the 2014 fall season we will start to see inventory raise with huge spikes after the 1st of the year. If you want to ease the pain of competition, your primary focus should be selling before the end of the year.

Dave Kibbey & Associates has had another fantastic year with a record number of listings & sales. We are very excited to help our clients fulfill their real estate goals & dreams. I look forward to updating you next week. In the meantime… stay Cool!

September 9, 2014 | Author: Dave Kibbey

You haven’t heard from me with my usual weekly updates, I actually took a good much needed vacation. After three weeks of rest, relaxation and fun in Hawaii… I am back and very excited about what’s in store for our real estate market this fall season. While I was away, I along with my team Sold 2 homes, and listed another… not bad for being on vacation… huh.

Now on to business… Interesting news; FICO… the company who is known to create your and everyone else’s FICO score (or credit score level based on your credit history) has created a new scoring system called FICO 9. The simple difference between the two; Fico 9 does not factor slow or bad pay medical debt into the scoring process. Not sure if this is GOOD or BAD. Based on my interpretation, there are legitimate medial situations where people just couldn’t handle the financial strife the medical situation put them in, and these people based on certain criteria may justifiably deserve a break. The other view is that the government is simply pressuring credit entities to make it easier to obtain credit in an effort to give the real estate market another shot in the arm, and at the same time making it too easy or acceptable to not pay your bills… NOT GOOD! Initially FICO 9 is not going to be used and acceptable to ALL banks or credit entities, and I’m thinking the ones that do will obviously generate more business, therefore pressuring the entities not using the new system to jump in. I sure hope this is not another beginning of a bubble. My thoughts are… those who prepare, and pay their bills should be rewarded with GOOD credit. Those who do not may have to pay the penalty of waiting and paying more. It is what it is!

The real estate market is holding strong with consistent sales right on through the summer. Summer inventory dropped significantly with seasonal listing inventory off for the summer, pushing serious buyers to take advantage of some of the good buys in an effort to buy before season, save money and have a home to enjoy for the 2014/2015 season. We expect the market to continue on in a positive direction, and prices to continue moving up. The only thing that will flatten the market this coming season is a huge inventory spike come January. I do expect huge seasonal inventory, although knowing mortgage interest rates will climb affecting affordability, I’m hoping serious buyers jump into the market sooner than later. If this happens we should see a good flow of housing inventory in all prices coming on the market along with the same consistency of home sales. If so… we may see prices take a significant jump in 2015.

July 14, 2014 | Author: Dave Kibbey

Well… the DOG days of summer are not what they used to be 2-3 years ago.  Summer sales in my areas of expertise; RM, PD, IW, LQ continue to move in a positive direction with relative strong sales, and the previously mentioned high levels of inventory are shrinking which is helping move some of the high-end properties to serious late season buyers. Currently in the $1Million & below category; there are only 411 single family homes on the market, 108 in Back-Up position (new escrows), 58 Pending Sale, and 34 SOLD since the beginning of this month with a median sales price of $428,750. Currently in the $1 Million & above category; there are currently 195 Active single family homes on the market, 12 in Back-Up status (new escrows), 9 Pending Sale, and 7 Sold since the beginning of this month with median sales price of $1,443,306…. a positive trend. If this trend continues on throughout the summer (knowing historically the high-end will slow August through October) with continued lower levels of inventory right on into the fall, and new up and coming season, this will give the high-end market a long awaited shot in the arm, which should sell many of the homes that didn’t sell this season simply due to unexpected high inventory levels, and sellers with pricing expectations higher than what the market would deliver.

Positive thoughts throughout the summer months, stay cool and let’s hope the market stays as HOT as the temperatures.

June 30, 2014 | Author: Dave Kibbey

Wow… July is already here, amazing the first half of 2014 is over, how time flies. No big changes in the market over the past week other than a continued positive decline in inventory, which is historical in the summer months, again a BIG positive for sellers on the market stretching through the summer. With late season buyers looking for a deal, and HOT summer buyers looking for their desert resort home/condo for fall/winter 2014 and 2015 season, I believe this summer will produce continued brisk sales. Remember there is a lot to be said for those amazing summer nights which many Europeans love right here in the desert.

Finally… I want to Thank YOU all of you for another amazing record setting sales year so far with Dave Kibbey & Associates. My goal first and foremost is to fight hard to protect your equity and help YOU achieve your Real Estate goals as quickly as possible.

Have a wonderful 4th of July!!!

June 25, 2014 | Author: Dave Kibbey

YES… It’s getting hotter in the desert!  The summer is here with daily temps above 100 degrees, and the market appears to be heating up.  I’m seeing positive and much needed changes in the market.  Over the past week my daily review of the MLS HOTSHEET has been encouraging; with inventory continuing to drop with a healthy balance between new listings coming on the market and listings going into escrow.  Versus the past 6 months with 3-4 times the amount of new listings verses new escrows.  Many motivated sellers have drastically reduced their prices to attract picky hungry buyers looking for deals, along with some of the inventory (mainly luxury homes) dropping off for the summer.  From everything I can see, this will be a fantastic summer selling season with motivated buyers concerned about over-paying next season, plus those taking advantage of remaining historically low mortgage rates which we know will soon be on the increase, and finally, sellers highly motivated to get their homes SOLD. If your home is NOT selling, I cannot reiterate enough… to consider a price adjustment that will attract serious buyers in this market place, and get your home SOLD.  In the meantime, enjoy these beautiful mornings and warm days before we get our HOT Summer weather soon to come.  If you have questions or concerns, please feel free to reach out and call me.

June 17, 2014 | Author: Dave Kibbey

Another gorgeous desert spring morning… cool mornings along with warm days, I’m not sure it gets any better than this 🙂  The market continued to be somewhat flat last week with relatively the same amount of new listings hitting the market as home sales.  The homes selling today are either over-the-top amazingly beautiful, or they are priced aggressively.  In the Luxury market, we continue to have high levels of inventory with many homes sitting unsold.  Highly motivated sellers are dropping their prices to bottom basement pricing, in addition to many throwing in furnishings, both of which is what’s getting them sold in this market.  Please feel free to reach out and call me if you have any questions or concerns.  Have a great week.

June 9, 2014 | Author: Dave Kibbey

Please find attached year 2013 over year 2014 sales numbers. These numbers reflect my areas of expertise as follows; Rancho Mirage, Palm Desert, Indian Wells, and La Quinta. For the most part we continue to see gradual improvement with 2014 sales numbers & values increasing, with the exception of the following price points; $250-$750,000, mainly due to seasonal inventory issues. In most cases the number of sales were up, median prices are up, and the number of days on market are down, showing steady growth. Rancho Mirage is the only city lagging behind in luxury home sales, as Palm Desert, Indian Wells, and La Quinta’s sales numbers & values are up. I attribute this to the desire of many luxury home buyers wanting newer homes & developments, and most want clean turn-key properties.  Attached please find current sales numbers from Jan 1st – May 31st 2013 & Jan 1st – May 31st 2014 year over year; Number of sales, Median Sales Price, and the amount of Days on Market to sell a home.
Thank you for your patience with the market… I’ve got your home exposed to the WORLD and hope to have the right qualified buyer walking through your door very soon. Should you have any questions, please feel free to call me.

May 28, 2014 | Author: Dave Kibbey

Knowing 2013 was an exciting year, we all expected 2014 would be even better (especially in the luxury home market), although we didn’t expect the high levels of inventory we’ve experienced this season. So many bottom feeders in the luxury home marketplace, in addition to the Canadian dollar to dropping 11%+-, which has caused less Canadian buyers, in addition to most buyers spending less on their purchases. Over the past 2 weeks we’ve noticed a heaver buyer pulse, with a large amount of buyer inquiries, showing requests, and properties selling. Some would say it’s tough out there, but actually it’s a healthy market with quite a few homes selling in excess of last year’s sales numbers, again… with high levels of inventory which provided buyers a great selection of homes to choose from. The luxury home market has been the slowest, (especially in Rancho Mirage) with BIG price reductions later in the season pushing prices down, and causing huge frustration with Luxury home sellers. As we move into spring season were starting to see more consistency in the market with a good amount of sales, less new listings, and a large amount of price reductions. This trend has unfortunately pushed priced luxury home prices down a 5-10%, and will likely cause stronger sales, especially with late season and summer buyers looking for good buys. If your listing is about to expire and you would rather sell than wait till nest season, you want to seriously consider adjusting your price down, and keeping your property ACTIVE through July. Last summer I Sold quite a few homes, and many were in excess of $1,000,000.

May 12, 2014 | Author: Dave Kibbey

We continue to see movement in the market, with median sale priced homes selling quickly… all much better than 2 years ago. Aggressive pricing remains an issue as inventory is up in most price points 75% higher than just 6 months ago. The higher the price, the longer homes are sitting on the market. We continue to see price reductions in all price points across the board. For example this morning when I checked the MLS hot sheet (which indicates new listings, back on the market, price reductions, pending sales, and Sold properties), the amount of properties just in escrow was ½ of the amount of new listings.  The number pf price reductions were 25% higher than the amount of new listings, and Sold properties. This is NOT doom & gloom; we are in a healthy market with a good amount of sales each day. Inventory is the issue which has pushed prices down, and will continue to do so, until sales pick up. Because of this we may see very good (off season) springs & summer sales, as buyers know the crème of the crop pickings are put there.
Finally… it is important you keep your home looking stellar, and ready to show at any moment.

April 21, 2014 | Author: Dave Kibbey

Spring is here and what gorgeous weather were having. The market is showings signs of momentum although we continue to see higher levels of inventory & volatility which has slowed sales numbers over the past 2 months of this year. If May 2014 is anything like last year, demand will pick up with late season buyers, inventory will drop, and we will see a true sellers’ market again. Last year between April 1st – May 20th 2013 there were 523 Sales with a median sale price of $340,000. This year same period, there were 428 sales (down about 20%) with a median sales price of $375,000 (up approximately 10%). Again these statistics cover my areas of expertise; Rancho Mirage, Palm Desert, Indian Wells, and La Quinta and in all price points. As previously mentioned last year we had a big late season flush of inventory. Here’s another example and what we’re hoping to see again this year: Apr 20th – May 31st  2013, there were 683 sales. Over the past week, we’ve been very busy showing properties, with a few sales and a bunch of awesome new listings. Keep the faith and positive thinking… were working on our end to get your home SOLD as quickly as possible, and for the highest dollar the market will bear.

March 24, 2014 | Author: Dave Kibbey

Gorgeous weather and a colorful desert… huh. Gosh… the Coachella Valley is packed with people, gridlock on the streets, the restaurants & stores are teaming with people spending money, and of course were hoping for the same feeling in Real Estate. The market certainly has momentum, but not like last year at this time, and we’re hoping for a late buyer season like we had last year. I am feeling an increased pulse as my phones have been ringing off the hook with lots of showings and a few sales. People are continuing to list their homes as were seeing high levels of seasonal inventory in all price points… in most cases 30-50% higher levels than last year at this time.

Your home is exposed to the world through huge online presence, media adverting’s, magazines, newspapers, flyers, mailers, and the list goes on. Patience please…. And I will continue to keep you informed as to the activity on your home, in hopes of procuring an offer ASAP

March 3, 2014 | Author: Dave Kibbey

For us desert folks… it sure was nice to see some rain. God only knows we need this rain severely, not to mention washing down some of the dust, and just in time to water all the natural desert seeds for our much awaited for gorgeous Desert Spring flowers.

Of course we’re hoping for the same rain (buyer rain) to fall into the desert and buy up this entire seasonal inventory. I along with a few other real estate brokers have a BIG inventory of listings; especially High End and all of us including YOU want the same result… a Sold sign out front. I can only tell you we’ve been very busy out showing property, and selling homes. Currently with 11 properties in escrow, 2 above the $1M price point and 9 under the $1M price point so this shows you where the volume of sales is today. The difference this year over last year, we have higher levels of seasonal inventory especially above the $1 Million price point, and buyers know it so they are all looking for a great value, and talking from experience were going through 3-5 counter offers before were sealing a deal.

Looking back last year at this time, as I’ve said before… March through June was when the high-end floodgates opened, we had a late buying season especially high-end, and I believe this years going to be a repeat of that. With the Desert population at it’s highest and so much going on; BNP Paribas Tennis Tournament and it’s new stadiums said to generate record attendee numbers this year, La Quinta Arts Festival starting this week generating over 25,000 attendees last year and over $2.8 Million in art sold, this is going to be another great year!

February 24, 2014 | Author: Dave Kibbey

For those of you with listing prices in the areas between $1.2M & $3.5M, do not be discouraged. I’ve recently fielded some calls from listed sellers along with prospects thinking of selling, with concern about the market. Many are told nothing is selling, and the interesting truth is the opposite is actually happening… the market overall continues to improve. The lack of a SOLD sign in front of your home in most cases is simply a seasonal inventory issue, with inventory in this price point average currently at 8.5 months. Remember back just 2 years ago… there was an 18 month inventory of Luxury homes in the valley. Below you will find the facts and forecast on the Luxury Home Market in my areas of expertise. Rancho Mirage, Palm Desert, Indian Wells, and La Quinta, and in price points from $1.2M up to $3.5M

Let’s rewind one year…

January 1st – February 20th 2013; there were 16 Luxury homes SOLD with a median sales price of $1,691,000

This year…

January 1st– February 20th 2014 there were 48 Luxury homes SOLD with a median sales price of $1,489,500, 3 times the amount of Luxury homes sales than in 2013.

The drop in median homes sales prices does not necessarily mean home values dropped, it simply means buyers in this time period chose to spend less on their home purchase, indicating buyers are price sensitive and all looking for great values. As an example… Canadians have recently lost 11% on their dollar, and many are still out looking & buying homes. They can simply be pickier with season inventory up and all buyers are looking for great values. Again… because the market has dramatically improved does not mean your Luxury home is worth more, it simply means you know have the opportunity to sell.

Looking into the future and knowing the market continues to improve overall, if last season’s numbers are indicative of this 2014 numbers, and knowing  the beginning of this year’s sales were up 3 times last year’s numbers, I believe were in for a record breaking “late” sales season ahead of us.

Forecast… Let’s look at last year’s numbers.

February 21st – April 30th 2013 (a 70 day period) 70 homes SOLD (or 1 per day) with a median sales price of $1,612,000

May 1st – June 30th 2013 (60 day period) 59 homes SOLD (approx. 1 per day) with a median sales price of $1,600,000

Positive thoughts my friends… everywhere I go, whether it’s a fine restaurant or Starbucks for coffee, these establishments are teaming with people spending money and there’s a pulse in the air we haven’t seen in years. Let’s all be patient with the market, pass on those positive vibes, continue to think positively into the future, and I believe things will continue to improve sooner than later!

February 17, 2014 | Author: Dave Kibbey

The market seems to be flat this last week with little movement. I continue to field many calls and emails regarding market conditions & buyer prospects. We’re very busy out showing, taking listings, along with many of calls & inquiries regarding the 39 listings I currently have. If this year is anything like last year… next month is going to be very busy. I remain positive!!!

February 3, 2014 | Author: Dave Kibbey

Another week has passed and we’re already into February… time goes by fast when you’re having fun. I’ve had some recent inquiries from my clients in addition to of course prospects thinking of selling, and wondering how the market is doing year over year. I believe you’re going to be pleased with the results. In the areas of my expertise which are Rancho Mirage, Palm Desert, Indian Wells, and La Quinta… covering the month of January, sales were down by 10% year over year with 317 sales in January 2103, and 289 sales in Jan 2014. Here’s the good news… year over year prices are up approximately 22%, a median sales price of $320,000 in Jan 2013 up to $390,000 in Jan 2014, “This is SIGNIFICANT”, and of course were all hoping for a strong season this year. If this year is anything like last year… which I believe it will be, you better hold on.  Mid to late February  through March 2013,  the flood gates opened and sales including the slow paced luxury homes under the $1.5M price point were selling like hot cakes. Here’s an example; February 2013 – 347 sales with a drop in median price to $299,900, and in March…WOW… 461 sales with a median sales price of $350,000. The average days on market year over year has averaged approximately 110 days. Remember the information provided above is statistical, and covering ALL sales activity in the above-mentioned areas. With home affordability minimizing as prices rise, mortgage rates on the rise economists estimate late 2014 – early 2015… people are “in the know” prices are going up… including Canadians who have lost 11% on their dollar are out and about buying homes. We are very busy fielding calls and inquiries regarding the market, working with home buying prospects, and selling listings properties. I sincerely hope your home is next to sell!

Reminder: It’s important your home stands out amongst your competition, widening your market… to push more prospects through your door. You want to be sure your home is looking its very best from curb appeal right on through to the back yard. If you typically don’t plant seasonal flowers, this season be sure to get the flowers in… as evidence of great curb appeal and pride of ownership will sell your home quicker, and bring more $$$.

January 27, 2014 | Author: Dave Kibbey

Another week has passed and the desert weather has been gorgeous to say the least. Obviously the snowbirds agree as the desert population is teaming with people. I continue to field quite a few call & email inquiries every day, and in all price points which is a good sign. We’re getting lots of showings and some second showings, which is a sign were close to selling that home. A concern for all of has been the Canadian dollar dipping 10-11% potentially causing sales to slow a bit in 2014, although I’ve been receiving lots of calls & scheduled showings from Canadians… some testing the waters, others pulling buying with two Canadian client purchases last week. The majority of our buyers come from CA, WA, OR, and AK with people running from the cold to our amazingly wonderful desert climate. I am confident they will continue to buy no matter what especially with the Baby Boomers (age 46-65 retires) coming our way which is projected to continue through 2030. History repeats itself as many of the seasonal visitors settle in for the season, and I am highly optimistic seasonal sales will grow stronger as we move closing into February & March. Five new listings last week and four sale transactions.

Reminder: It’s important your home stands out amongst your competition, widening your market… to push more prospects through your door. You want to be sure your home is looking its very best from curb appeal right on through to the back yard. If you typically don’t plant seasonal flowers, this season be sure to get the flowers in… as evidence of great curb appeal and pride of ownership will sell your home quicker, and bring more $$$.

I will continue to keep you updated… please feel free to reach out and call me if you have any questions or concerns. Enjoy your week and hopefully I’ll be contacting you with an offer soon. Finally…If there is anyone you know that’s needs my help with their Real Estate needs, PLEASE call me today and we will take good care of them. We very much appreciate referrals!

January 13, 2014 | Author: Dave Kibbey

Last week was uneventful for Dave Kibbey & Associates with NO new listings and NO new buyer sales. Open Houses were also slow this past weekend, however we did field quite a few calls & email inquiries over the past week regarding many of the 34 listings I currently have.

If you haven’t heard… the Canadian dollar recently took an approx. 10% drop in value which could have some negative effects on our local market, as Canadians have provided a BIG shot in the arm regarding our local real estate market. The good thing is most of the buyers come from CA, WA, OR, and AK with people running from the cold to our amazingly wonderful desert climate. They will continue to buy no matter what…. History repeats itself
as many of the seasonal visitors settle in for the season, and I am highly optimistic this season will be strong.

Positive thoughts my friends and patience… I will get the job done!

January 6, 2014 | Author: Dave Kibbey

Happy New Year… Wishing you a quick sale early this year! The first couple weeks of the new year are typically a little slow with people arriving back from the holidays with family & friends. With all of the positive changes we’ve seen throughout 2013, I have a very positive outlook for 2014. Moreover talking with other agents… most are very positive and saying they’re feeling a good pulse.

December 30, 2013 | Author: Dave Kibbey

Hoping you had a wonderful Christmas holiday with family & friends… gosh before you know it we’re off to start a new year. From everything I can see and read, all of the leading indicators are here for 2014 to be a record setting year we’ve all been waiting for. 2013 has been a very busy, productive, trying, adjusting, educational, meaningful, relief for many, and very successful year for myself and my team. Some of you have been waiting patiently for that perfect qualified buyer to walk through your door, and with our high season right around the corner to help us do just that. It is however important your home is positioned to sell as well. Positive thoughts for a sale very soon!!!

Five New Listings; two in Indian Wells – a beautifully Hacienda style furnished 3bd/3ba in gated Los Lagos at $450,000, another in Indian Wells CC Stellar custom Desert Contemporary 3bd/4ba beauty at $1,769,000, one in Rancho Mirage a simply gorgeous custom Mediterranean 3 bed 4 bath in Villaggio on Sinatra at $1,575,000, and 2 in La Quinta Golf Estates; beautifully remodeled 3bd/4ba custom Mediterranean style home with privacy @ $1,295,000, and celebrity owned UNIQUE & walled estate property – 4000+ SF of Santa Fe Style home on a 26,000 SF lot with the best La Quinta southern Mountain Views at $1,550,000. Positive thoughts from here on out wishing you and your loved ones a truly Happy Healthy Prosperous 2014!

December 16, 2013 | Author: Dave Kibbey

Over the past week… calls, inquiries, and showings have slowed which is typical for December and usually the slowest month of the year for Real Estate. I do however continue to take new listings as sellers see the positive trend in the market and their level of confidence is at a much higher level of confidence than last year. New listings: Indian Wells CC; 4900 SF Modern with spectacular mountain views at $1,769,000, Whitehawk Palm Desert; 3bd/3ba 2,660 SF no pool at $399,000, and Los Lagos Indian Wells 3bd/3ba 2,810 SF at $450,000. Again… this time of the year is historically slower with people focusing on the holidays, and the likelihood is it will stay slow till after the first week of January. My goal however is to sell eight homes this December & I’ve only sold five, so I’ve got some work to do… positive thoughts.

December 3, 2013 | Author: Dave Kibbey

Over the past week the real estate market overall was a little slower with Thanksgiving a priority for most people, typical for this time of the year. We did however sell two Listings and also two buyer sales totaling in excess of $3,133,000 in sales revenues. I expect sales to be slower to moderate through December, and expect a super 2014 real estate market. For quite some time now… we have been experiencing all of the signs that lead to a market recovery, switching to a sellers’ market with a strong demand. Fortunately… mortgage rates are remaining historically low, along with a pent up demand, buyers are ready and pulling the trigger. Sales are up dramatically over last year as buyer confidence is at the highest level we’ve seen in 6 years. As stated last week update, inventory levels are up which is simply due to seasonal inventory as predicted. When high season comes (Jan 15 – April 15 2014), from everything I can see & feel,  demand will increase even more, and I believe after the 1st quarter of 2014 we’ll see the trend in inventory drop due to strong sales.. Even today… I showed one of my listing in the $1.5M price point, the buyers were definitely in the know about the market, are qualified, and ready to pull the trigger.