Palm Springs Area - (Palm Springs, Cathedral City, Rancho Mirage, Desert Hot Springs, Palm Desert, La Quinta, Indio, Bermuda Dunes)
Total available properties decreased again this month 9 percent when compared with July. In January of 2008 the total inventory for all categories totaled 7681 properties. We now have 5171 properties on the market reflecting 2510 fewer properties, a decrease of 32%!!!! since the first of the year. This decline should help stabilize the housing market in the area.
Traditionally August is a slow month in the Coachella Valley because it is very hot and humid and we are all ready for a vacation. September will tell us if the market is continuing to improve
Interest rates declined as a result of the government assistance to Fannie-Mae and Freddie-Mac. This assistance provided assurance to lenders that there will be a continuing secondary market for sale of mortgage loans, thus loosening the credit market.
A substantial number of new sales are REO’s at very attractive prices. Bank owned properties are being priced very aggressively in order to get the properties sold.
| Type | Total Inventory | Pendings | New Listings | New Listings/Sales Ratio | Sales As Percent Of Inventory |
|---|---|---|---|---|---|
| Single Family Homes | 3752 | 309 | 721 | 2.3 to 1 | 8.2% |
| Condos | 1251 | 35 | 199 | 6 to 1 | 5.8% |
| Multi-Family | 168 | 7 | 27 | 4 to 1 | 4.2% |
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.
Hi, I'm Jeannie. For over 25 years I've helped investors make money in markets both good and bad. 
