May 28, 2014
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.