Palm Springs Market Statistics 2014

Short sales and Foreclosures Drop - Equity Sales Increase

PRICES RISE year over year in the Coachella Valley

Market statistics for May 2014 have been compiled and published.  It shows some interesting facts and a decided change in the Real Estate market in Palm Springs. If displayed on a graph it would also show a steady line up. The trends we are about to discuss below have been steadily developing this entire year, with no retreat.

• First, the number of homes being sold as foreclosures or short sales has taken another big drop. This category is down 50% from May 2013 when 18% of homes were in this category.


• Secondly, the number of available homes is rising with about 90 more condos and 90 more homes on average – available each month. This is a wake- up call for sellers because the number of homes selling is dropping in each category and each city.


• Third and most important however is the marked increase in price. The median sales price for single family homes is now $455,100 whereas in 2013 it was $368,100 and for condos the median price is now at $232,222 VS. the 2013 figure of $182,000.

With these type numbers Pam Springs and the Coachella Valley are outpacing the Riverside County wide statistics, where a higher percentage of homes are still in foreclosure or short sale and the median price  remains over $100,000 less than Pam Springs.

Obviously, the number of properties selling will drop as prices rise.  The prices will rise as the supply of foreclosed and short sale homes drops.  Notwithstanding that obvious equation - there is no doubt that the market in Palm Springs has returned to a more stabilized mode.

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How Much Is MY Home Worth?

Find out with our 26 Point Max Home Value assessment...As a free service to you I will come to your home and complete my 26 point Maximum Home Value assessment. Just for letting me meet you and walk through your home I will leave you with a written report of what I think it will take to prepare your home for sale at the maximum current price.

You see, I work with so many buyers that, I can walk through any home and see it through the buyers eyes. I know what they will like and what will raise questions for them. Let me show you these things and you can have a more successful sale.

It will take about 30 minutes, depending on how many questions you have for me. No pressure no obligation - you receive free of charge the written plan to getting your home on the market and achieving top dollar in your sale.

How Do I Calculate How Much My Home is Worth?

The correct selling price of a home is the highest price that the market will bear. Many factors influence this price and those factors can change from month to month and year to year. It is important to talk with a Realtor who is actively working in your community to correctly determine the price of your home. Don't play guessing games with one of your largest assets. To assist you in determining the correct asking price we provide you with a comprehensive market analysis of comparable properties sold and offered for sale in your neighborhood. We educate you on the trends currently at play in the market and advise you on any special concerns in your area.

Simply email us, and we will provide you with a speedy response. There is no obligation, you have lots to gain and nothing to lose by contacting us soon.

Don't forget that knowing your homes current value is very

useful when it comes to insurance matters, tax issues and estate planning. With all the changes of the last five years it is time for you to take another look at this critical number.

Just one mundane example of this is the cost of installing a water heater. It has more than doubled to over $1200.  Just one example of the rising costs of replacement.

Sold In One Day Central Palm Springs

Central Palm Springs Bungalow

Overview Maps Photos Features Description Neighborhood Market Stats

$329,000 Single Family Home Main Features 2 Bedrooms 2 Full Bathrooms 1 Unit Interior: 1,120 sqft Lot: 3,485 sqft Year Built: 1975 Location 1230 E Alejo Palm Springs, CA 92264 USA

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Michael Layton CA BRE# 01342880 Big Block Realty (760) 408-5300 [email protected] http://www.PSagent.com        Listed by: Big Block Realty

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Interest Rates Lower Than Ever

[caption id="attachment_2256" align="aligncenter" width="170"] History Of Interest Rates[/caption]

With Shopping for good deals being the focus of the day I thought it was pertinent to bring up our historic low interest rates. Sure we have heard for some time now that interest rates are low, however, It is one thing to hear it but to see this chart it really brings it home.

The best way to take advantage of these great rates is to be pre-qualified with a a good lender. If you need a recommendation don't hesitate to call us at 760-408-5300 or visit our home loan page on our web site.

2011 Final Sales Numbers IN!

  2011 Sales Statistics

       For The Coachella ValleyArea

9706 total unit sales  Homes/Condos

The year that just ended was a very busy year for Real Estate.  While Short sales and foreclosures made up close to 50% of the market there were still many traditional sales taking place

Counting the Cities from Palm Springs to Mecca we saw 7,338 single family homes sell in 2011.  Almost  a quater of those - 24.05% - sold in 30 days or less.  Another 34.98% - took between 30 and 90 days to sell.

The median sales price for single family homes was $190,750.  Not surprisingly the homes that sold in 30 days or less achieved 97% of their asking price, however the bigger surprise may be that homes on the market for 120 days or more still achieved 92% of their asking prices.

To contrast these numbers with 2010  the percentage of list price achieved went up year over year - in 2010 it was only 93%, so 4% beter in 2011.  The total number of homes sold was down but only by  25 units however, the median sales price was down 15K over 2010 when it was $205,000.

Looking at  Condo sales in 2011:  We saw 2368 total units sell The median price for those was $173,750. Asking price vs. actual sales price percentages were in a tight range between 92% and 94%. The most telling thing in this category was the days on market - or time it took to sell a condo. Almost half 48.3% of the units took over 120 days to sell. Buyer resistance to homeowners fees and more difficulty qualifying for a loan were the primary culprits here.

There were 5 homes sold in 2011 over 5 million dollars in the valley. One at the Hideaway one at Bighorn in Palm Desert and 2 at the Vintage.  The winner for top sales price was a 7.6 million dollar estate in The Madison.

See Luxury Properties In The Desert

With the vastly reduced inventory (only 4858 homes and condos valley wide) 2012 promises to be a very competitive year for home buyers in the Coachella Valley especially in the more popular price points.  Most well priced properties are once again seeing multiple offer situations.

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Search For Condos In The Palm Springs Area

This Month In Real Estate

This months report covers first time buyers wants and needs. What motivates them to buy rather than rent. The major driving force now is the staggeringly low 4.1% average mortgage interest rate.

Breaking News! Foreclosure Reviews Pending

November 1, 2011 it was announced that consumers who were foreclosed on may be eligible for a review of their foreclosure and possible compensation for any wrong doing. Banking regulators are stepping up to the plate and acknowledging that massive irregularities, in 2009 and 2010,  in the processes of the 14 major loan servicing companies requires this review.

The most likely candidates for this review are homeowners who knew something was wrong with their mortgage paperwork but could not get anyone to listen to them back when banks became flooded with foreclosure actions. Many of these homeowners were actively pursuing mortgage loan modifications when the foreclosures took place.

Bank regulators are starting the process by requiring the banks to mail a letter to the former owners of the estimate 4 million cases they intend to review. The reviews will be done at no cost to consumers.  This is a plus as a typical review, often called a forensic audit, could cost a private individual anywhere from $2,500-$5,000.

If you feel like there was something wrong with your foreclosure, now is the time to act. Even if you do not receive one of these letters now is the time to take action.

More information can be found at:

IndependentForeclosureReview.com,   or  toll-free phone line, (888) 952-9105

See more information about short sales and foreclosures on our website

This Month In Real Estate October 2011

[youtube http://www.youtube.com/watch?v=hmkm_tN7Zq0&version=3&hl=en_US&rel=0]

GOT Prequalified or Preapproved? Know the difference!

[youtube http://www.youtube.com/watch?v=hwOaWNVv0gY&version=3&hl=en_US&rel=0]

This month in Real Estate our video explains the importance of being PRE- APPROVED vs. PRE - Qualified before you go out shopping for your new home.   The work you do up front to get this done will ensure that when you find the house you really want you are prepared and in the best place to make sure you get it!

A good lender can make all the difference in your transaction.  Ask your agent for recommendations and tips on what questions to ask to make sure that the choice you make is best for you and your situation. You can also stop by our mortgage information page on our website PSagent.com

What is A QRM?

It is a Qualified Residential Mortgage and is a proposal put forth by federal regulators to try and make sure that lenders cannot make risky loans just for a quick profit. Protecting the economy at large and consumers as well.

While the idea is a good one at heart the proposed restrictions would make it vastly more difficult for the average consumer to obtain financing for a home purchase. Many consumers would be shut out of the housing market all together.

An article on the rismedia site says:

RISMEDIA, August 3, 2011—A proposed rule by federal regulators to impose a minimum 20 percent down payment, stringent debt-to-income ratio requirements and rigid credit standards will deny millions of Americans access to safe, low-cost mortgages, according to the National Association of Realtors®.

Read the whole article on RIS MEdia Site

There is no question that some regulations on risky and predatory lending need to be put in place. There is no question that there were big problems with the way things use to be. However, a middle ground needs to be found, in any new regulations , so that the very consumers the regulators are trying to protect are not shut out of the market to the extent that they don't need any protection since they can't participate anyway!

If you are considering a home purchase anytime in the future I would encourage you to pay attention to the political debate on this subject. Let your representatives know that access to financing for your dream of home ownership is important to you. This access to finance issue and the mortgage interest tax deduction are probably the two most important political issues you can't afford to ignore if you are interested in owning your own home.
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May Sales Stats In The Coachella Valley

As if low interest rates were not enough reason to get serious about buying look at these numbers! 

Exceeding all expectations the May 2011 real estate sales numbers reflect a growing trend. Over 900 homes sold - AGAIN!  This time 911. Once again a new  milestone - breaking the 900 mark for  homes sold in one month for only the third time in the last 2 years! You will also be surprised to learn that while 1274 homes came on the market in May 2011 another 1286 moved into escrow by going under contract.  Essentially wiping out the gains of the new homes listed.  Supply and demand seem to be leveling out.

More good news as the median price has risen 23% since May of 2009. While prices are still low and pockets of resistance still exist there is no question that exceptional values are becoming a little more scarce.  In general we can say that for homes in great condition prices are headed up not down on average.

Most importantly the months supply of inventory is dropping like a stone! Month supply of inventory is figured by assuming that the current sales rate continues and no other home is listed for sale. That would mean we only have 3.8 months inventory left!  Not only is that the lowest in more than two years but it represents a steady decline since December of 2010 when we had a 10 month supply. These are numbers that can't be ignored. A change is in the air. If you are looking to buy real estate it would be hard to beat the timing of this market.

New Statistics on Short Sales, Foreclosures and Regular Sales

The California Association of Realtors has released new data on the percentage of sales that are short, bank owned or traditional.  In a two year study - January 2009 to January 2011 what they found was this:

In January of 2009 the break down was:

Bank Owned: 51%  Short Sale: 10% Traditional Sale: 39%

Bank owned sales began declining in April of 09 and continued that trend with only a small uptick in June of 2010
Short Sales during the same time period began a steady climb that has not stopped while traditional sales actually surged above 50% for most of 2010.

According to the study January of 2011 saw the numbers at:

Bank Owned: 34%  Short Sale 24% Traditional 42%

It is clear that short sales are going to continue to be a big part of the inventory of homes for sale.  With foreclosure rates falling off it seems as though bank owned home sales will continue to level off. The main thing that could change that is if the banks have large inventories of unsold homes that they have not released yet.

For more information on Short Sales be sure to visit that page on my website PSagent.com

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March 2011 Real Estate Sales Stats - Palm Springs, CA

Raising the roof on real estate sales. 

We have reached a milestone - the most homes sold in one month in the last 2 years!  A total of 954 properties closed escrow in the month of March 2011. This statistic combined with an approximately 9% drop in year over year supply of inventory has starting to change the face of the Real Estate market in the Coachella Valley.

The median Sold price has steadily climbed an average of $214,495 up 21.9% change from March of 2009. Lastly the Months Supply of Inventory - meaning how many months existing inventory would last if no new homes came on the market - is now at 5.9 months - again this represents a new two year low.

Mortgages rates are still very competitive hovering around 5% though all industry buzz is that these are going to rise and soon. If you are in the market now is a decidedly good time to strike. If you are thinking of selling now is a good time to explore your options.

Is the Government Looking to End Secured Mortgages?

According to a new policy paper the Obama Administration submitted to the Treasury Department just last week the answer may be yes.  Looking to privatize this and relieve the government - ie: taxpayer liability for mortgages gone bad.

Government back loans through Fannie Mae and Freddie Mac have long been a staple of the US real estate market and have helped many a homeowner get their first home.  To be sure the two were also closely tied to some of the worst abuses in the mortgage melt down of the last 5 years.

No matter which side of the issue you are on this is a BIG change in business as usual in the government back loan business.  Read the entire document outlining the administrations proposals.

Should You Fight the Bank To Keep Your House Part II

In the first part we covered the basics of how you should decide if you are capable of keeping your home and what the first steps are. Here we cover what happens next:

So you have gathered all your paperwork and are ready to send it in. Typically you have to fax all this stuff in with your account number written on every page.  You usually have to update the things like bank statements and pay stubs as you get new ones.

Don’t be surprised but the first answer is usually – NO! (If the bank says yes please read  section 4)

3) After The Bank Says NO: Don’t let this deter you.  Ask for the specific reasons in writing.  Ask for supervisors to explain what your options are. Ask what the review process is and tell them you want to be reconsidered. Unless they can tell you specifically that you do not qualify based on your income I would not accept no from this level at the bank.  I would keep pushing until they refuse to consider your paperwork anymore. Sometimes they will cite the type of loan you got originally. Ask for this in writing so you can show it anyone else you may seek help from. You should assume that you will have to push and you will have to raise the stakes.  Don’t lose your cool but be persistent in letting them know you want a solution.

If you get that final “no we won’t look at your file or try to help you any more” answer you should then try to get outside help. There is a non-profit organization that will help you with this process. NACA.com.  Go to their website and see how the system works. Basically they negotiate with the banks to try and get you modified loans and reduced payments and interest rates.  Since you will have all the paperwork together you can start  their system right away.  Again, this is not loads of fun but it can be done –I personally know multiple people who have received help, with great success,  from NACA.  You could start with NACA and skip trying to do it yourself but I do not think you should.  As the banks customer you should trying asking for help from them directly first.  Document your efforts – keep a small notebook with dates and times of calls made, faxes sent, answer received.

Lastly, if the Bank won’t help, if NACA says they can’t help you you can try two other routes.  One is called a forensic Audit of your loan.  There are firms out there who do this for about $3,000 – many are attorneys.  They will examine your original loan for inconsistencies and help you go back against the bank to reset the terms based on faulty original paperwork.  This is a very aggressive approach and you must be careful to avoid scam artists.  Check out anyone you are thinking of hiring with the Better business Bureau and the Attorney Generals office in your state. The other option is an attorney.  There are many attorneys now specializing in debt reduction –debt relief and bankruptcy.  These would be a good place to start.  Find one who will help you try to negotiate with the bank and any other creditor you may have to try and keep you in your home.

4) The Bank Said Yes! Hopefully you will get to a yes long before you consider a forensic audit or a attorney.   So if the bank says yes read their terms very carefully.  There are basically two types of yes answers.  One is a temporary reduction of payment and/or interest rate that sets your monthly payment at a rate you can afford.  The total amount of principal that you are not paying is often wrapped to the end of the loan – in other words you are not getting out of paying any amount due you are just putting it off. This is often called forbearance.  A better version of this is a permanent reduction of interest rate (if your problem iis that your rate is too high) The second type, and less common one is the mortgage modification or principal reduction where your note is lowered by a cancellation of some of the debt.  They are reducing the total amount due on the loan.

Staying in your home is well worth the effort you will have to make for most people. Don't be discouraged and don't fall for scam artists who say they will do all the work for you.  No matter which route you take you will have to gather organize and prepare all the paperwork listed above that will be used to make the decision about your mortgage payments.

The programs available to help you and the banks willingness to help change constantly so keep asking questions.  I believe that we are in a 10-15 month window of time where these programs and options are at their peak.  After this window passes I think we will start back towards a market where many of these options for you as a homeowner will be phased out and no longer available.  The time to act is now before they start disappearing.

If you know you cannot afford your home now or in the near future a short sale may be the answer for you.  You can read more about short sales at PSagent.com

Are Foreclosures Really Dropping Off?

In the exuberance to proclaim the economy "healed" "recovered" "rebounding" or "looking up" some in the media are not revealing the whole story when it comes to Foreclosures. Stories can always be told two ways.  For example if this month 40 house sold and last month only 20 had sold it could be truthfully reported that HOME SALES Doubled!  The reality behind that may be that 40 is the average and 20 was just a terrible month.

When it comes to foreclosures the reporting that they are down is not totally untrue.  Realty Trac (a real estate data company) reported that January 2011 Foreclosures where down 17% over January 2010.   Sounds good, you might think that we are seeing major improvement. The other part of that data is that this is still a 1% increase in foreclosures over December 2010 nation wide and locally it is 3%.  That is up not down.

So to dig a little deeper it is important to note what is happening behind the scenes.  That is that the banks are mired in additional government restrictions and internal policy changes that they have implemented in light of some high profile problems.  In other words, many of the foreclosures are simply being stalled and pushed back on the calendar.  Policies from the administration are causing banks to give more consideration to modifying loans and making sure everything is in order before they actually do foreclose.  Also, because home prices are not rebounding the number of homeowner who are upside down in their homes remains high.  The longer that this remains the case the more problematic it becomes.  Peoples lives changes, homes need to be sold, people have to move, downsize or up-size their living situations.  Underwater homes can't be sold except in a short sale situation.

Are things improving? Yes, there are some signs that things are getting a little better.  There is reason to hope.  Even the slowdown in foreclosure actions is a good thing in its own way.  In a fragile economy, the last thing we want to do is put someone out of their home who could, with a little help, hold on to it.  At the same time we don't want to get too exuberant over statistics that are not fully understood or explained in context.  See the whole story at CNN money.

Search for Foreclosed properties in the Palm Springs CA area

A Real Estate Shortage?

As unimaginable as it might sound, a record low inventory of available properties is starting to show up in dozens of areas around the country. Right here in the Coachella Valley - Palm Springs - there is a pent up demand for homes in certain price ranges. With the big banks involved in so much of the potential inventory reaction times are slow and don't always match the needs of the market. This month in Real Estate talks about this issue in a a little more detail.

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Market Trends and This month In Real Estate

November numbers are out for the Valley and show a decided drop in the over all sales. A 7.7% drop from Novemebr 2009 when 826 total properties sold vs. 762 in 2010.

Difficulty for consumers in obtaining loans and the vast number of short sales (delayed property closings) surely contributed to the lower number as did a general slowdown in foreclosed properties coming to the market.

There were some bright spots in the market - as always Real Estate is local and a look at the local areas confirms that. Palm Springs Central (north of Ramon Road but south of Vista Chino) saw an increase of 29% in the number of homes sold year over year. It was also the second month in a row as October had a 22.2% increase. Thousand Palms and La Quinta as well as two of the three sections of Indio all saw significant double digit gains in numbers of properties sold year over year.

At the end of the day, however, we saw a drop and the inventory slipped back up to 9.7 months. This is the number of months it would take to sell existing inventory at current rates if no other homes came on the market.

In the new year we will be looking for government programs, incentive and consumer confidence to drive home sales. Additionally the banks, at least in the Palm Springs marketplace, should start releasing more homes from their foreclosure inventory in the lower price ranges. There is a pent up demand for the lower priced homes that has not been addressed on the local level.

See More Reginal and National Statistics in my One Minute Real Estate Report

Developing Trends In Real Estate Buying

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A Recent article in US World and News Report breaks down the different demographic groups and analyzes the unique choices and challenges each group has in the current real estate market.

The two most interesting points to me, revolved around 1) GenY (late teen to early 30's age group) losing faith in the value of owning a home and coupled with their interest in living in more urban areas becoming a class of permanent renters and 2) The Baby Boomers in the 45-55 age group unable to sell their homes in the suburbs to downsize. Negative equity and a much smaller pool of buyers to sell to make these homes harder to unload.

My thoughts on the Gen Y group is that if they lock themselves into renting now - later in life they may find that the market has passed them by. As the economy changes, interest rates rise and costs continue to escalate they may be unable to buy or at least unable to buy in the areas they most want to live in.  Not only will this create a permanent class of renters but I wonder about the long term economic impact of,  say 20%, of the population not buying property?

As far as the baby boomers being unable to sell their properties at what they paid for them - this is bound to have a negative effect on the retirement plans of these homeowners.  Perhaps fewer vacation home purchases and a delay of retirement all together will be the result. The article mentions a drop in the interest for retirement centers as people live longer and healthier lives. I wonder what will happen to the suburbs as these properties eventually sell for much less or are abandoned all together.

Styles do change and new things become desirable leaving previous "hot ticket items" in the dust. I remember in the early 1980's I was living in the "suburbs" in a nice home that was built in 1973.  It has 4 bedrooms and 4 baths along with a cavernous living room and a small formal dining room plus an eat in kitchen.  I was pretty comfortable and I thought the house was pretty upscale.  One night in the early summer I decided that I would take a walk through the woods to a new home development that was being built.  In those days homes under construction could be left unlocked and I decided to walk through a few of them.  I recall being completely flabbergasted at what I saw.  There were master "suites" with huge walk in closets and bathrooms as big as my entire bedroom and bathroom put together.  Kitchens were big and roomy not little after thoughts off the dining room. Building styles had begun to change and as we would all soon see this was just my first glimpse of  the new style of home for the 1980's. These days no one would look twice at a home like that,  it is standard issue in the American suburbs.

I believe we are the cusp of another major change in how Americans live and what they want in their homes.  My best take, on the trends cited in this interesting article, are that midsized urban centers with a high quality of life are going to be the "hot" properties in the very near future.  Large suburbs far from amenities and work places will suffer as the next generation of home buyer no longer considers them desirable or in fashion.

Look at all homes for sale in Palm Springs California:

Treasury Department Issues Statement

Yesterday, November 18th, the Treasury Department issued a statement about the measures the government is taking to help home owners in distress. It is interesting to read for two reasons. One if you are in a modification program you can compare what you are being told and what the governments stated objective is for that program. Two, if you are wondering what options are really out there and confused by the media coverage it is spelled out pretty clearly in this speech.

To see the whole statement visit my page about it on this blog or use this link Treasury Department Statement.