Palm Springs Area - (Palm Springs, Cathedral City, Rancho Mirage, Desert Hot Springs, Palm Desert, La Quinta, Indio, Bermuda Dunes)
Total Inventory (Properties Available For Sale on the MLS) increased by 42 properties with ALL of the increase being in condominiums. Single Family Homes and Multi-family Properties declined again this month.
Adjusting for a 28 day month, properties going into escrow remained constant with January.
I constantly monitor “inventory” as this is an indicator where prices are going. Once we get to the point where inventory is consistently declining noticeably, we will see a market price stabilization.
Pendings are a great way to take a quick “pulse” of market activity, as it reflects how many buyers are out there in the last thirty days. I have been surprised by the number of higher end properties still selling in the current downturn.
Investors can now have up to ten (10) loans, per the change in Fannie/Freddie guidelines. View complete guidelines:
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0902.pdf
Market conditions are changing so quickly and there are so many different opinions, please feel free to contact me for any specific questions or discussion. That’s what I’m here for!
Some explanations of my report:
Total Inventorytells us how many properties are on the market for sale. When inventory is rising, prices will fall because there are more properties competing for buyers.
When inventory is declining, prices will rise, such as we saw in 2004 to 2006.
Pendingstells us how many properties went into escrow for the month. This gives us a very quick picture of the current activity.
Charting “Solds” or actual closed escrows will provide pricing information but in a changing market such as we are in currently, it will not reflect an accurate picture, i.e., Solds usually were placed under contract at least 30 and sometimes as much as 90 days prior to title actually transferring to the new buyer.
| Type | Total Inventory | Pendings | New Listings | New Listings/Sales Ratio | Sales As Percent Of Inventory |
|---|---|---|---|---|---|
| Single Family Homes | 4690 | 417 | 853 | 2 to 1 | 9% |
| Condos | 1762 | 55 | 276 | 5 to 1 | 3% |
| Multi-Family | 169 | 11 | 21 | 2 to 1 | 6.5% |
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. 
