July 7th, 2015
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.