Palm Springs Market Watch: March 2008

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	5475	388	960	2.5 to 1	7%
Condos	1873	126	305	2.4 to 1	6.7%
Multi-Family	218	4	25	6 to 1	1.8%

Single family homes fared very well in March. Total inventory of SFR’s decreased by 64 homes, properties going into escrow rose by 55 and new listings were 51 fewer than February. All of these are positive indicators.

It’s my understanding that March is traditionally the largest sales month in the desert, i.e., the winter vacationers like to purchase prior to departing for the summer. April should be more indicative of any developing trends.

This March a substantial number of Canadians and Europeans were purchasing here for second homes as well as investments. The U.S. Dollar is now worth 30 to 35 % less than the Euro or Canadian Dollar was four years ago, making our real estate a huge bargain for those folks.

My investors got some good buys this month. Banks are now beginning to price their REO (foreclosed properties) at very reasonable values, up to 55% LESS than what a property sold for 18 months ago! In order to obtain this kind of purchase, you have to be able to make your offer almost immediately after the property comes on the market, minimal or no contingency, short escrow period, but it’s worth it.

Remember to understand the numbers when looking at percentage quotations. I can state that “sales of multi-family increased by 100% in March or that sales doubled! The fact is we had four sales rather than two!!!!! In this downtown, my biggest pet peeve is headlines using the data to make a case either positive or negative. This is why I do my own stats……….I know what’s going on! *

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.