Palm Springs Market Watch: October 2007

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

Type	Total Inventory	Pendings	New Listings	New Listings/Sales Ratio	Sales As Percent Of Inventory
Single Family Homes	5143	181	1239	7 to 1	3.5%
Condos	1717	55	420	7.6 to 1	3.2%
Multi-Family	222	2	36	18 to 1!!!	.9%

New listings continued to increase, however were offset by an increase in pendings. While all of the desert remains slow, again I repeat the Multi-Family Market is the one with the most problems. Sellers and Listing Brokers have to realize it is a disservice to everyone to place a property on the market that does not reflect a price that will bring a buyer within a sixty day period. Sellers become disappointed, Brokers receive the anger/disappointment from their client and the market continues to show a huge supply of unsold inventory. I will not take a listing that I feel will not be sold and close escrow within sixty days.

I only listed two properties in the last sixty days, however both closed escrow in the above required time. The sellers didn’t get the prices they were hoping for but the properties were realistically priced, were placed in escrow within 10 days of the initial offering. It was a good business decision by both sellers, they received their cash quickly without holding a vacant property six months, then reducing the price, possibly selling for even lower than what they obtained.

I continually hear knowledgeable individuals in real estate ponder the fact that our median price has risen from 2006 and how they are pleased the Valley is still doing well. The reality of the situation is that the lower end of the market….under $350,000 is mostly gone or at best has been reduced substantially, while the higher end properties, $450,000 and above have continued to sell. This is the only reason our median/average price has reflected an increase. Do the math and you will see why.

From the Desert Sun, October 5th, 2007 www.mydesert.com

Despite fall in sales, median home prices rise

October 5, 2007 •• 499 words •• ID: plm18904406

By Michael Perrault

The Palm Springs Sun Home sales in Palm Springs fell by double-digit figures in August compared with the same month a year ago, a new report shows. There was a 36 percent sales decline in the 92264 ZIP Code, and a 41 percent drop in the 92262 ZIP Code, according to La Jolla-based real estate information firm DataQuick Information Systems. Some 88 homes sold in Palm Springs, compared with 127 during July and 151 in June, DataQuick reported.