Jeannie Niles Real Estate Investment
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Palm Springs Market Watch: March 2007
| Type | New Listings | Pendings | New Listings/Sales Ratio |
|---|---|---|---|
| Single Family Homes | 1148 | 292 | 3.9 to 1 |
| Condos | 448 | 153 | 2.9 to 1 |
| Multi-Family | 37 | 5 | 7.4 to 1 |
All categories had slightly increased inventory this month, further enhancing a buyer’s market. The segment of the market in the most trouble is multi-family. The ratio of new listings to properties going into escrow this month almost doubled!!!! **For every multi-family property going into escrow in March, 7.4 new properties came on the market!!!!
The sad thing is most of these properties will just sit on the market giving evidence of a very poor sales market. The majority of the problem in the multi-family segment is that listing brokers and sellers are NOT PRICING the properties realistically. First, operating expenses need to be listed correctly. There are no properties with 10% operating expenses. Most properties will have a minimum of 30% to 40% operating expenses.
A property with a cap rate under 5% isn’t going to sell. For a few months at the market peak, this was attainable but no longer. When a property is placed on the market with improper pricing and incorrect information, it just sits there, creating a glut of properties for sale as well as frustrating owners/sellers that are trying to sell their property.
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The declines were very minimal, in fact November was almost identical to October.
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Inventory increased, sales declined and new listings increased in all types of property this month. I expected this because of all the bad news in the credit markets, government bailouts, declining stock market.
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Inventory increased by 600 properties; however sales increased by 54%!!!!
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Total available properties decreased again this month 9 percent when compared with July.
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Total available properties decreased again!!!
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Jeannie Niles Real Estate Investment
P.O. Box 317
Palm Desert, CA 92261
P: (760) 360-4020
F: (760) 340-9069
E: jniles@realestate-investment.com
