Rising market??? So what does that really mean in the Coachella Valley?
Nationally we read the headlines, “Home prices up 30%, home prices up 5%, home prices up 22%!!!”
The economic spin can be confusing, which is why it’s ALWAYS important to ask, what are home prices doing in my region?
2013 – the year of “Multiple Offers.” Between Tony A. and Bob M., I think we wrote over 30 offers alone. What a crazy time! So what drove such madness? Jobs? A rising economy? No, not really. After the height of 2006, we saw a fall of approximately 30% in home values across the desert (give or take the community location and age of the community). In the fall of 2012, prospective home buyers and investors returned in droves. Interest rates were at an all time low and depressed properties were plentiful. Time to scoop them up. Generally, people felt it was the bottom of the market so it was time to jump back in (along with the numerous cash investors as well). Timing the market…..well, good luck. You never know where the bottom is until it begins to creep back up. But one true sign from my building days, when you can’t replace it for the cost of building it, it’s time to pounce! And that they did!
2014 – Today’s headlines in the local Desert Sun – “the Desert is up 18% from last year”…… Seriously?!
We need to be careful of such headlines (and as a local broker, I am). Yes, our values are rising indeed (more like an average of 10% thus far from the 2006 high), but it’s far more important to break it down by community, price point and location – all of these variables must be considered. For example, most of the hardest hit home communities were those constructed or purchased between 2001-2006. These new homes were purchased during an upward accelerating market. So if values fall dramatically, they are upside down quickly. Is it a sign of a lousy community? Generally – no. More of a sign of when the home was constructed/purchased. Another factor……very high-end developments such as Big Horn, Tradition, Hideaway, The Reserve, etc… These high end communities of the wealthy, well, their “sandbox” was less affected. They only saw dips of about 8% from their highs, and they were still building mulit-million dollar homes in the midst of the falling economy.
So, when I am asked about home values (yesterday, today and tomorrow), there’s lots to explain. One has to talk about the true history of a particular community and the values within that specific community by itself.
SHARE YOUR VENDOR REFERRAL
Many of my clients are new to the desert and appreciate referrals for home repairs, house cleaners, dentists, etc…. As always, feel free to call or shoot me an email if I can help refer someone to you. Also, if you have found a great vendor referral, please let me know. We all need people we can trust to do excellent work on our beautiful homes. Duncan M. had a great painter he sent my way and the Quimbys are thrilled with their Santa Rosa Cove house watch person.
Wishart and Kathy’s Rockin’
Palm Springs Pad!
Check out the new kitchen cabinets from IKEA (who knew!) – time to get the Palm Spings, mid-century look the Robsons have always wanted!
We found their 2013 dream home in Central Palm Springs with the desired modern lines, but Wish and Kathy wanted a super clean, sleek kitchen as well. Wish went to IKEA of all places to order the cabinets, sink, you name it. I saw it first hand and it looks terrific!
The Robsons also wanted to enclose a small 10 x 10 patio area to create a third bedroom/office to accommodate a Queen size Murphy Bed for their guests. It also turned out fabulous. Kathy went to www.BredaBeds.com and found American made, affordable, compact, modern design which works great in their place. And delivered to their door step!
Thanks for sharing guys!
Spring is our busiest time of the year. Not only for snow bird’s buying and selling, but activities galore! Mark your calendars for these not to miss events-
BNP Paribas 2014 Tennis Tournament – March 3-16 – You don’t have to be an avid tennis player to enjoy the world’s 5th largest tennis tournament being played at the Indian Wells Tennis Gardens. You can get UP CLOSE to all the pros while they are practicing and get great seats at many of the earlier rounds. Stay clear of the stadium seats in the hot sun – or bring a huge hat and sunglasses, it does get quite warm! I can’t wait to check out the new stadium. My son John looks forward to seeing cutie pie Maria Sharapova for sure.
La Quinta Arts Festival – March 6-9 – This art festival is HUGE and has been recently rated as #1 in the country! I always tell my clients to buy local art when furnishing their homes. Local art is both reflective of our surroundings and it’s a wonderful reminder of where you were when you purchased something so treasured.
Empire Polo Grounds – Sundays at Noon – Take a picnic out to the La Quinta/Indio Empire Polo Grounds on a Sunday afternoon. You will LOVE doing this. I had never experienced polo first hand until we finally went out a few weekends ago. It was a kick!