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!