Palm Springs Area - (Palm Springs, Cathedral City, Rancho Mirage, Desert Hot Springs, Palm Desert, La Quinta, Indio, Bermuda Dunes)

Available properties for sale in the Palm Springs area - as a comparison from January 2008 to February 2010.

Even with unemployment being in the 12 to 15% range for the Coachella Valley (Palm Springs, Palm Desert, Cathedral City, La Quinta, Rancho Mirage, Indio, Desert Hot Springs) the supply of unsold single family homes is now at 3.8 months compared to 16.6 months in January 2008.

This is the lowest inventory we have had in five years! Any property that is priced correctly will have multiple offers almost immediately after coming on the market. Most properties sell well over the listing price.

Check out: Wall Street Journal - California Home Inventory Shrinks Rapidly

-- Jeannie

Palm Springs Area - (Palm Springs, Cathedral City, Rancho Mirage, Desert Hot Springs, Palm Desert, La Quinta, Indio, Bermuda Dunes)

Inventory Rose 5% from October….still at an all time low.

I’m having a lot of success getting short sales approved on Investor Owned Property.

Market slowed slightly prior to Thanksgiving Holiday.

Rental Market is slow due to unemployment issues in the valley.

Currently On The Market
Condos - 116 REO, 142 Short Sale
SFR’s - 309 REO, 485 Short Sale
Multi-fam - 9 REO, 18 Short Sale

Short sales are increasing since banks are realizing a short sale is far less costly than having a foreclosure.

Some explanations of my report:

Total Inventory tells us how many properties are on the market for sale. When inventory is rising, prices will fall because there are more properties competing for buyers.

When inventory is declining, prices will rise, such as we saw in 2004 to 2006.

Pendings tells us how many properties went into escrow for the month. This gives us a very quick picture of the current activity.

Each month I reiterate you have to understand the numbers to really see what is happening in the marketplace. Anyone can make a case for whatever they want to project if they use the right numbers.

*REO – stands for Real Estate Owned and is a term that means Bank Owned Real Estate…obtained from a foreclosure action.

Recent Market Updates

-- Jeannie

Palm Springs Area - (Palm Springs, Cathedral City, Rancho Mirage, Desert Hot Springs, Palm Desert, La Quinta, Indio, Bermuda Dunes)

Inventory increased 3% from September, but still 30% less than January 31, 2009.

The season officially begins 10/1/09…. Reason for slight increase in new listings.

Banks now agreeing to short sales on investment property.

Many investors purchasing properties for cash.

70% of new listings are regular sales (not Bank Owned or Short Sales)

Condos - 341 total, 43 REO, 27 Short Sale
SFR’s - 777 total, 158 REO, 101 Short Sale
Multi-fam - 24 total, 8 REO, 3 Short Sale
Here’s an example of a duplex that sold this month…..multiple offers in 4 days!

In order to be successful in getting a good property at a great price, it’s important to be ready to submit an offer as soon as the property comes on the market. Get a qualification letter from your lender and have your “proof of funds” to close escrow available. I try to submit the first offer when a great property hits the market.

Real Property Investment is now earning 6 to 8% return on your investment. Income property is once again “creating income”.

Some explanations of my report:

Total Inventory tells us how many properties are on the market for sale. When inventory is rising, prices will fall because there are more properties competing for buyers.

When inventory is declining, prices will rise, such as we saw in 2004 to 2006.

Pendings tells us how many properties went into escrow for the month. This gives us a very quick picture of the current activity.

Each month I reiterate you have to understand the numbers to really see what is happening in the marketplace. Anyone can make a case for whatever they want to project if they use the right numbers.

*REO – stands for Real Estate Owned and is a term that means Bank Owned Real Estate…obtained from a foreclosure action.

Recent Market Updates

-- Jeannie

Palm Springs Area - (Palm Springs, Cathedral City, Rancho Mirage, Desert Hot Springs, Palm Desert, La Quinta, Indio, Bermuda Dunes)

September almost identical to August activity.

The market continued to improve throughout the summer months, even with temperatures well over 100 degrees.

Fewer Foreclosures…Many more Short Sales. *

635 properties closed escrow in September.

Rental Market firming up.

In order to be successful in getting a good property at a great price, it’s important to be ready to submit an offer as soon as the property comes on the market. Get a qualification letter from your lender and have your “proof of funds” to close escrow available. I try to submit the first offer when a great property hits the market.

New Listings are reflecting the shift from foreclosures to short sales:

Condos - 262 total, 39 REO, 28 Short Sale
SFR’s - 646 total, 115 REO, 118 Short Sale
Multi-fam - 11 total, 5 REO, 1 Short Sale

On investment property it is common to enjoy a 7% cash on cash return…..Where else in today’s financial market can you achieve this kind of earnings safely?

Send an email or make a phone call…. There are some great buys in the desert. Some attractive investments are SFR’s in Cathedral City, multi-family in South Palm Desert and condos in Indian Creek Villas.

Some explanations of my report:

Total Inventory tells us how many properties are on the market for sale. When inventory is rising, prices will fall because there are more properties competing for buyers.

When inventory is declining, prices will rise, such as we saw in 2004 to 2006.

Pendings tells us how many properties went into escrow for the month. This gives us a very quick picture of the current activity.

Charting “Solds” or actual closed escrows will provide pricing information but in a changing market such as we are in currently, it will not reflect an accurate picture, i.e., Solds usually were placed under contract at least 30 and sometimes as much as 90 days prior to title actually transferring to the new buyer.

The category “contingent other” is when a property is placed into escrow but the buyer still has contingencies in the transaction. Pending is when all contingencies have been removed and the buyers deposit becomes non-refundable. Agents are supposed to report a property going into escrow as “contingent other” until all contingencies are removed, at which time the property is moved into “pending” status. Unfortunately some agents are now leaving their listing in the “contingent other” status until it is ready to close escrow and some agents place an open escrow into pending immediately. This inconsistency in reporting will skew the results somewhat, but the trends will remain the same .Any questions or suggestions, PLEASE let me know!

Each month I reiterate you have to understand the numbers to really see what is happening in the marketplace. Anyone can make a case for whatever they want to project if they use the right numbers.

*REO – stands for Real Estate Owned and is a term that means Bank Owned Real Estate…obtained from a foreclosure action.

Recent Market Updates

-- Jeannie

Palm Springs Area - (Palm Springs, Cathedral City, Rancho Mirage, Desert Hot Springs, Palm Desert, La Quinta, Indio, Bermuda Dunes)

4% DECLINE in Inventory During Month of August 2009.

Many properties priced “under” fair market value allowing the market to set the price through competitive bidding.

Banks more cooperative in allowing short sales for investor owned properties.

Less Amount of Time for Banks to respond to Short Sales.

Rental Market firming up.

Banks are quite different from a year ago. Most banks are now easier to work with and it is possible to sell as a short sale, even if you are an investor owner of a property that is “under water”.

Still an unknown what current foreclosure filings will do to inventory. With banks being more willing to negotiate/work with investors as well as owner occupiers, the new supply may be diminished.

A total of 581 properties closed escrow in August. I track properties “going into” escrow because that statistic gives more accurate information as to what the market is currently doing. Once a property goes into escrow, it can take up to 90 or 120 days to close!

On investment property it is common to enjoy a 7% cash on cash return…. Where else in today’s financial market can you achieve this kind of earnings safely?

Send an email or make a phone call….I’ll share some amazing properties for sale in the current market.

Some explanations of my report:

Total Inventory tells us how many properties are on the market for sale. When inventory is rising, prices will fall because there are more properties competing for buyers.

When inventory is declining, prices will rise, such as we saw in 2004 to 2006.

Pendings tells us how many properties went into escrow for the month. This gives us a very quick picture of the current activity.

Charting “Solds” or actual closed escrows will provide pricing information but in a changing market such as we are in currently, it will not reflect an accurate picture, i.e., Solds usually were placed under contract at least 30 and sometimes as much as 90 days prior to title actually transferring to the new buyer.

The category “contingent other” is when a property is placed into escrow but the buyer still has contingencies in the transaction. Pending is when all contingencies have been removed and the buyers deposit becomes non-refundable. Agents are supposed to report a property going into escrow as “contingent other” until all contingencies are removed, at which time the property is moved into “pending” status. Unfortunately some agents are now leaving their listing in the “contingent other” status until it is ready to close escrow and some agents place an open escrow into pending immediately. This inconsistency in reporting will skew the results somewhat, but the trends will remain the same .Any questions or suggestions, PLEASE let me know!

Each month I reiterate you have to understand the numbers to really see what is happening in the marketplace. Anyone can make a case for whatever they want to project if they use the right numbers.

*REO – stands for Real Estate Owned and is a term that means Bank Owned Real Estate…obtained from a foreclosure action.

Recent Market Updates

-- Jeannie

Palm Springs Area - (Palm Springs, Cathedral City, Rancho Mirage, Desert Hot Springs, Palm Desert, La Quinta, Indio, Bermuda Dunes)

41% decline in inventory since 1/31/09

Multiple Offers on Most Listings

Many Listings sell OVER Listing Price

Investors return to market with Cash Purchases

If no additional catastrophe occurs like the October 08 credit meltdown, the bottom of our market occurred in February 2009. Sales have increased each month since February and inventory has declined.

In February it was possible to purchase a home in Desert Hot Springs for $50,000! Those same homes are now selling for $100,000!

Duplexes that were selling for $150/160,000 are now approaching $200,000.

The Federal Reserve today kept interest rates at historical lows and indicated they would continue that policy.

It’s an amazing time to purchase real estate.

Questions? Comments? Send an email or give me a call.

Some explanations of my report:

Total Inventory tells us how many properties are on the market for sale. When inventory is rising, prices will fall because there are more properties competing for buyers.

When inventory is declining, prices will rise, such as we saw in 2004 to 2006.

Pendings tells us how many properties went into escrow for the month. This gives us a very quick picture of the current activity.

Charting “Solds” or actual closed escrows will provide pricing information but in a changing market such as we are in currently, it will not reflect an accurate picture, i.e., Solds usually were placed under contract at least 30 and sometimes as much as 90 days prior to title actually transferring to the new buyer.

The category contingent other has been added this month. Most of the time a buyer has 17 days from the date of acceptance in which to remove all contingencies and his/her deposit goes non-refundable. Agents are supposed to report a property going into escrow as “contingent other” until the 17th day or when all contingencies are removed, at which time the property is moved into “pending” status. I have discovered many agents are now leaving their listing in the “contingent other” status until it is ready to close escrow, thus the reason I have added this category. Any questions regarding this, let me know!

Each month I reiterate you have to understand the numbers to really see what is happening in the marketplace. Anyone can make a case for whatever they want to project if they use the right numbers.

*REO – stands for Real Estate Owned and is a term that means Bank Owned Real Estate…obtained from a foreclosure action.

-- Jeannie

Palm Springs Area - (Palm Springs, Cathedral City, Rancho Mirage, Desert Hot Springs, Palm Desert, La Quinta, Indio, Bermuda Dunes)

BIGGEST NEWS is Declining Inventory. Inventory declined 9% during the month of June. There were 7681 properties available for sale in January of 2009. Currently there are 4805 properties available for sale reflecting a

37% decline in six months.

The market is changing very quickly. If a property is priced accurately, multiple offers will be generated in a matter of hours.

Does this signal we are past the bottom? Unfortunately no one knows.

It’s going to depend on what the banks do with their unsold inventory and future foreclosures. I don’t think we will see a huge flood of REO properties hitting the market in late summer.

If the inventory remains limited we will start seeing price appreciation.

A very misleading item is short sale listings. Short sales are often listed at a much lower price than what the property will sell for. This is done by the listing broker in order to attract many offers in which to negotiate with the lender. When reviewing “available properties” online, it’s critical to ascertain the short sales from regular or REO sales.

See my next posting for stats on sales activity of REO’s, Short Pays and Regular sales.

Some explanations of my report:

Total Inventory tells us how many properties are on the market for sale. When inventory is rising, prices will fall because there are more properties competing for buyers.

When inventory is declining, prices will rise, such as we saw in 2004 to 2006.

Pendings tells us how many properties went into escrow for the month. This gives us a very quick picture of the current activity.

Charting “Solds” or actual closed escrows will provide pricing information but in a changing market such as we are in currently, it will not reflect an accurate picture, i.e., Solds usually were placed under contract at least 30 and sometimes as much as 90 days prior to title actually transferring to the new buyer.

Each month I reiterate you have to understand the numbers to really see what is happening in the marketplace. Anyone can make a case for whatever they want to project if they use the right numbers.

*REO – stands for Real Estate Owned and is a term that means Bank Owned Real Estate…obtained from a foreclosure action.

-- Jeannie

Palm Springs Area - (Palm Springs, Cathedral City, Rancho Mirage, Desert Hot Springs, Palm Desert, La Quinta, Indio, Bermuda Dunes)

Total inventory available January 2008 was 7681 properties. This was the largest amount of available property since the downturn began. As of 5/31/2009 total available properties are 5259, which represents a decline of 31.5% from the peak.

Inventory is anticipated to start rising again once the banks continue their foreclosure process. There was a foreclosure moratorium from December 08 to approximately March 09, while everyone was waiting for the Obama Administrations plan to stem the foreclosure crisis.

Prices declined substantially the first quarter of 09, in fact the huge decline in our area was from October 08 to March 09.

Many properties are being sold at price reductions of 50 to 80 percent off their all time high in 2005 and 2006.

Opportunities abound! Single Family Homes under $100,000, duplexes for $150,000 and condos for $50,000!

It’s now possible to earn a higher income return on real property at the current prices than most other investments available.

Some explanations of my report:

Total Inventory tells us how many properties are on the market for sale. When inventory is rising, prices will fall because there are more properties competing for buyers.

When inventory is declining, prices will rise, such as we saw in 2004 to 2006.

Pendings tells us how many properties went into escrow for the month. This gives us a very quick picture of the current activity.

Charting “Solds” or actual closed escrows will provide pricing information but in a changing market such as we are in currently, it will not reflect an accurate picture, i.e., Solds usually were placed under contract at least 30 and sometimes as much as 90 days prior to title actually transferring to the new buyer.

Each month I reiterate you have to understand the numbers to really see what is happening in the marketplace. Anyone can make a case for whatever they want to project if they use the right numbers.

*REO – stands for Real Estate Owned and is a term that means Bank Owned Real Estate…obtained from a foreclosure action.

-- Jeannie

Palm Springs Area - (Palm Springs, Cathedral City, Rancho Mirage, Desert Hot Springs, Palm Desert, La Quinta, Indio, Bermuda Dunes)

13% decline in single family home inventory. (Good)

3% decline in condo inventory. (Good)

25% decline in new listings for single family homes. (Good)

13% decline in “pendings” for single family homes. (Disappointing)

17 multi-family properties went into escrow this month! (Good)
15 of these were REO’s. (See separate REO Report for April)

Other stats remained constant as compared to March.

Prices have continued to decline. A home at 66221 4th Street in Desert Hot Springs that I sold 9/06 for $150,000 sold for $22,000 in March 09, a price decline of 85%

This would equate to a 2.8 x gross or a 14% cap rate! In my 30 years of real estate brokerage, these types of “income” returns have never been available in real estate ownership.

Most properties in the desert have declined approximately 50 to 60% of their 2005-2007 value. The majority of this decline occurred in late 2008/early 2009, after the credit melt down/stock market decline of Mid October 2008.

Hopefully, inventory will continue to decline, which should create firming up/increase in prices. One “unknown” however is how much property the banks are currently holding in their inventory. Should banks begin flooding the market with additional REO properties, this will create additional downward pressure on prices.

It’s very difficult to “time” the market for the exact bottom. The returns referenced above are a higher return than any other investment available. Interest rates are at 50 year lows which will not be available indefinitely.

Market conditions are changing so quickly and there are so many different opinions, please feel free to contact me for any specific questions or discussion. That’s what I’m here for!

Some explanations of my report:

Total Inventory tells us how many properties are on the market for sale. When inventory is rising, prices will fall because there are more properties competing for buyers.

When inventory is declining, prices will rise, such as we saw in 2004 to 2006.

Pendings tells us how many properties went into escrow for the month. This gives us a very quick picture of the current activity.

Charting “Solds” or actual closed escrows will provide pricing information but in a changing market such as we are in currently, it will not reflect an accurate picture, i.e., Solds usually were placed under contract at least 30 and sometimes as much as 90 days prior to title actually transferring to the new buyer.

Each month I reiterate you have to understand the numbers to really see what is happening in the marketplace. Anyone can make a case for whatever they want to project if they use the right numbers.

*REO – stands for Real Estate Owned and is a term that means Bank Owned Real Estate…obtained from a foreclosure action.

-- Jeannie

Palm Springs Area - (Palm Springs, Cathedral City, Rancho Mirage, Desert Hot Springs, Palm Desert, La Quinta, Indio, Bermuda Dunes)

42% increase in sales of single family homes this month.
75% increase in sales of condos this month.
Multi-family continues to stagnate. REO’s are now beginning to hit the market in duplex, triplexes, etc.

REO sales dominate the market at prices the same as five to six years ago!

The majority of properties have declined by 50% (+-) from 2005 and 2006.

Some homes in Desert Hot Springs are selling for 20% of what they sold for 3 years ago! During the heyday this area was overbuilt, thus creating a huge inventory not able to be sold when the market declined. It’s possible to purchase a 3 bedroom, two bath home, 1400 + square feet for $60,000!

Many investors want to “wait and see” what happens, thus contributing to the overall market conditions.

Interest rates are at a 50 year low.

Market conditions are changing so quickly and there are so many different opinions, please feel free to contact me for any specific questions or discussion. That’s what I’m here for!

Some explanations of my report:

Total Inventory tells us how many properties are on the market for sale. When inventory is rising, prices will fall because there are more properties competing for buyers.

When inventory is declining, prices will rise, such as we saw in 2004 to 2006.

Pendings tells us how many properties went into escrow for the month. This gives us a very quick picture of the current activity.

Charting “Solds” or actual closed escrows will provide pricing information but in a changing market such as we are in currently, it will not reflect an accurate picture, i.e., Solds usually were placed under contract at least 30 and sometimes as much as 90 days prior to title actually transferring to the new buyer.

Each month I reiterate you have to understand the numbers to really see what is happening in the marketplace. Anyone can make a case for whatever they want to project if they use the right numbers.

*REO – stands for Real Estate Owned and is a term that means Bank Owned Real Estate…obtained from a foreclosure action.

-- Jeannie