Wednesday, March 10, 2010

If You're Waiting for Palm Springs Real Estate to Hit Bottom...You've Missed It!


Home sales in the Coachella Valley rose 22 percent while the median price jumped 19 percent in January, proving the area to be more resilient as sales sputtered across California.

That was all good news compared to the state. California's 27,858 sales of new and resale homes and condominiums were down 5.4 percent compared to January 2009.

The valley's median home sales price was $215,000 for all homes and condominiums combined in January. That reflected a 19.4 percent gain compared to the 180,000 in January 2009.

One home in Palm Desert sold for $7.5 million.

In the Coachella Valley, MDA DataQuick reported 748 total sales.

Condominiums led the way, posting 152 percent sales gains in January over the same month last year with 197 sales at the median price of $236,000.

Resale home activity was up nearly 4 percent with 513 sales at a median price of $198,000, according to DataQuick, the nationwide real estate monitoring firm.

New home sales fell 5 percent, with just 38 sales closing escrow that month. The new home sales median was reported to be $259,750, nearly 14 percent less than the median in January 2009.

Greg Berkemer, executive vice president of California Desert Association of Realtors, said sales data collected from Multiple Listing Service sales shows that existing home and condo sales rose by 51 percent from a year ago.

But because the inventory has remained flat for the past three months hovering at 8,100 properties it appears that even with increased sales, a replacement supply of new listings are coming onto the market. The steady supply continues to put downward pressure on pricing, he said.

It suggests that distressed properties and low-cost inland homes, such as those in the Coachella Valley, are grabbing the attention of buyers.

DataQuick reported that 44 percent of the existing homes sold in January in Southern California had been foreclosed on during the past year.

That was up from 40.8 percent in December, but down from 58.2 percent in January a year ago.

Foreclosure resales peaked at 58.8 percent last February.

The January stats underscore just how atypical this market remains. A huge chunk of what's selling is still distressed,'' MDA DataQuick president John Walsh said in a statement.

Investors and first-time buyers continue to dominate many areas, while the move-up market has yet to kick in.

For Riverside County, MDA DataQuick reported a 4.8 percent drop in year-over- year sales, from 3,320 in January 2009 down to 3,162. The median remained at $195,000.

The obtainable value of Palm Springs area real estate is nothing short of amazing. Have a look at our listings on our website for examples (or search the entire desert area MLS from our site).This is especially striking when compared to prices in cities form which people come to this area (Los Angeles, Seattle, Calgary, Minneapolis, etc).

Here's another in a series of local stories (The Desert Sun) that offer empirical proof that the Palm Springs area real estate market is rebounding. Now is the time to buy and sell homes in the Coachella valley. If you're waiting for the market to hit've missed it!

Also have a look at the relevant, important information at the following link: (copy and paste to your browser).

Contact us at: to discuss.

Posted via web from Love of the Desert's Posterous

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