November 4, 2016
Evident pre-Election Pause in the market | Post Election Momentum… we sure hope!
Our beautiful fall weather is here, so being, many snow-birds and seasonal residents too. Our cool evenings and warm days are certainly welcome after a typical HOT summer in the desert. Golden Voice Sponsored Desert TRIP bringing in the Rolling Stones, Paul McCartney, and the like… created an earlier populous Fall season here in the Coachella Valley pumping big revenue into our hospitality industry as well as planting seeds for future real estate clients. As many of you reading this update can relate, that’s how it happens, you come to the Coachella Valley for a visit and before you know it, you love it so much you now own a condo or home. Local concerts such as Coachella and Stagecoach have brought a new younger level of buyer’s discovering the desert; savvy successful millennials who know what they want and have the desire for a second home in the Coachella Valley. As a lifetime desert resident, the transformation of the Coachella Valley over the past 50 years has been quite amazing, as I clearly remember riding my motorcycle over sand dunes throughout the desert, where now large housing subdivisions are located, such as Toscana Country Club in Indian Wells, now one of the fastest growing and most desirable luxury home developments in the Desert.
So, what can we expect from the real estate market post-election into our 2016- 2017 Season?
With my almost 20 years’ real estate experience in both investing and professional client representation, election years can certainly cause a pause in the market. This election, with our country so divided, even well qualified buyers seem to be holding off on pulling the trigger till post-election. Both homeowners that want to sell, and real estate professionals are hoping for a post-election shot in the arm with hope of an upward buyer trend creating a more balanced market. Most of the few significant real estate professionals here in the desert I’ve spoken to, believe the market will improve in 2017 though we may not see the market tip unless we see a significant increase in sales volume.
As I’ve mentioned in previous updates over the past two years, we continue to see tremendous volatility in the market with high levels of inventory, along with low – moderate buyer demand. Since 2014 inventory has grown higher each year, and I have a high level of confidence 2017 seasonal inventory will raise even higher than 2016. Year over year within my areas of expertise of Rancho Mirage, Palm Desert, Indian Wells and La Quinta, overall (combined price segments) inventory is up 13.4%, Sold Homes are up 8.9%, and Pending sales are up 9.8%, though most of these sales were below the $500,000 price segment. Current inventory examples: 9.5-month inventory in the $500-$750K price segment, 20.2-month inventory in the $750K-$1M price segment (the slowest selling), 8.1-month inventory in the $1M-$1.25M price segment, 11.4-month inventory in the $1.25M-$1.5M price segment, and a 24-month inventory in the $1.5M and up price segment. Overall, October was a slow month, however there are quite a few prospects looking. I have received four buyer referrals today (positive news) all of which are coming throughout the U.S. and Canada.
Many people have asked me why our desert market remains a buyers’ market, when markets to our west and north, Northern California, Oregon, Washington all the way north to Alaska are selling like crazy, in many cases multiple offers with some selling over asking price. You must remember we have always been, and will always be a resort destination with 40+-% of our homeowner’s absentee much of the year. Resort markets are typically slower to recover. Knowing all the above, if you have been thinking of buying a condo, home, or estate property, our central valley market offers a great selection of inventory to choose your desert dream home. In addition, super low mortgage rates remain available offering you even more financial flexibility should you choose to hold your cash, leverage the property and finance. Now may be a great time for you to pull the trigger on your dream home purchase. I have a plethora of amazing properties in all prices to share with you. Whether it be full time, part time, or vacation property we can help you find the right property at the right price. If you’re thinking of selling for whatever reason, our track record says it all.
For more details on sales numbers, please click here.
Positive thoughts as we move into high season, and I wish you and yours a wonderful Holiday season. Please feel free to reach out to me for your real estate needs… I welcome the opportunity to discuss your needs, and help you achieve your goals.