3rd Quarter 2018 Market Update
“What was, last season may not be the same, this season”
Twenty Eighteen has been a strong sales year and may be the best we’re going to see this real estate cycle. Of course, we are all hoping for another strong year, though some sellers’ expectations these days seem to be unrealistic for this stage in the market. We’ve seen a 9-year run up in the stock market and from what I can gauge, a 10-year run up in the real estate market. The economy is obviously strong, jobless rates the lowest we’ve seen in 49-years, people are spending, and numbers are very good both in the number of homes sold and well as sales prices. The BIG question is how long this bull market will continue. Based on history we expect to see some flattening out in the market soon.
My belief is, some sellers will likely have to lower their expectations as to what they will net, or stand a chance selling for less when the market flattens out. Remember, history repeats. Once we see flattening in the market, inventory will rise, and motivated sellers will reduce their prices to sell, adjusting values down. This is not negative talk, it is reality some people may not pay attention to. Those who do and price their homes right will net significant gains, those who don’t, oh well!
My advice to sellers today is to look at your home in the eyes of today’s buyer! Talk with experienced agents who can provide valuable data to help you make an informed real estate decision, not just talk you want to hear. Do your homework, study market trends, and comparable sales data before you make your decision. Ultimately, you will be happy you did.
Currently, we are very busy with taking and managing significant New Listings, presenting these fine properties and negotiating deals. Here at Dave Kibbey & Associates, our #1 goal is to help our clients achieve their goals. If that means some uncomfortable moments advising our clients on issues they’d prefer not hearing, we will do so anyway to keep it real and ultimately help them make the right decision.
Below you will find year over year 3rd quarter sales numbers and prices, which may surprise you. I hope you find this information helpful in consideration of the market as a buyer or seller. I welcome the opportunity talk and or meet with you, and help you make an informed real estate decision.
Let’s look at sales numbers and values year over year
“Rancho Mirage, Palm Desert, Indian Wells and La Quinta”
{Number of Sales indicated below as (*) }
$250K-$500K Price segment: Palm Desert and La Quinta experienced gains in value and sales prices. Rancho Mirage and Indian Wells dropped slightly in sales numbers though Rancho Mirage was up in value slightly. Indian Wells was down mainly due to their high median sales price of $730,000.
$500K-$750K Price Segment: Rancho Mirage (54-62*) and Palm Desert (50-55*) experienced slight gains in both sales numbers and sales prices, both Indian Wells and La Quinta dropped slightly.
$750K – $1M Price Segment: All four Cities experienced gains in sales numbers though sales prices dropped slightly, except for La Quinta with a slight gain in value.
$1M -$1.25M Price Segment: Rancho Mirage (3-5*) experienced a gain in sales numbers and values, though Palm Desert, Indian Wells and La Quinta experienced slight declines. Not uncommon to see sales numbers slow in the summer month in higher price segments.
$1.25M – $1.5M Price segment: Palm Desert (1-2*), Indian Wells (0-4*) and La Quinta (3-5*) experienced slight gains in sales numbers, though all four of the cities experienced declines in sales price.
$1.5M – $1.75M Price Segment: Rancho Mirage (8-1*), Palm Desert (1-0*) and Indian Wells (4-1*) experienced declines in sales numbers, La Quinta was par (2-2*). Rancho Mirage and La Quinta experienced slight upside in sales price though Palm Desert and Indian Wells dropped slightly.
$1.75M – $2M Price Segment: Rancho Mirage (0-2*), Indian Wells (3-4*), and La Quinta (3-4*) experience a rise in sales numbers and sales prices, though Palm Desert was par.
$2M – $2.5M Price Segment: Palm Desert (1-2*), and La Quinta (2-4*) doubled prior year sales numbers, though sales prices dropped slightly, except Indian Wells with a slight gain.
$2.5M – $3M Price Segment: Rancho Mirage (1-2*), Palm Desert (0-2*) and La Quinta( 1-3*) experienced a slight gain in sales numbers, both Rancho Mirage, Palm Desert and Indian Wells also experienced slight gains in sales price.
$3M and up Price Segment: Pretty quiet… Palm Desert (0-2*) and La Quinta (1-3*) experienced gains in sales numbers.
I hope you find my market updates informative and helpful. Please feel free to reach out to me with comments or questions. Whether now or in the future, I welcome the opportunity to talk with you and help you achieve your goal.
Best Regards,
Dave Kibbey