Jeannie Niles Real Estate Investment
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Palm Springs Market Watch: September 2007
| Type | Total Inventory | Pendings | New Listings | New Listings/Sales Ratio | % of Inventory Sold |
|---|---|---|---|---|---|
| Single Family Homes | 4891 | 149 | 1130 | 8 to 1 | 3% |
| Condos | 1591 | 53 | 282 | 5 to 1 | 3.3% |
| Multi-Family | 226 | 2 | 25 | 12.5 to 1 | .9 |
New listings increased 79% from August to September for Single Family Homes and 43% for condos!!! The majority of the increase came during the latter part of the month, thus October most likely will have the same trend. All the negative news coming out about sub-prime loans, housing meltdown, foreclosures is causing panic in the marketplace with the result being a rush to sell.
The biggest decline has come in the lower end of the housing market. Homes in Desert Hot Springs that were selling for $265,000 two years ago, at best currently would sell for $170,000, a 35.8% decline.
In many cases, entry level housing is now selling for less than replacement cost. Rents appear to be firming up…..with all the people losing their homes to foreclosure…they become tenants…putting additional demand on existing rental units.
If this trend continues for several months and interest rates remain low, investors should start coming back into the market because income to value ratios have risen dramatically, mostly from falling prices.
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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
