Palm Springs Area - (Palm Springs, Cathedral City, Rancho Mirage, Desert Hot Springs, Palm Desert, La Quinta, Indio, Bermuda Dunes)
42% increase in sales of single family homes this month.
75% increase in sales of condos this month.
Multi-family continues to stagnate. REO’s are now beginning to hit the market in duplex, triplexes, etc.
REO sales dominate the market at prices the same as five to six years ago!
The majority of properties have declined by 50% (+-) from 2005 and 2006.
Some homes in Desert Hot Springs are selling for 20% of what they sold for 3 years ago! During the heyday this area was overbuilt, thus creating a huge inventory not able to be sold when the market declined. It’s possible to purchase a 3 bedroom, two bath home, 1400 + square feet for $60,000!
Many investors want to “wait and see” what happens, thus contributing to the overall market conditions.
Interest rates are at a 50 year low.
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 | 4566 | 594 | 809 | 1.4 to 1 | 13% |
| Condos | 1732 | 96 | 285 | 3 to 1 | 5.5% |
| Multi-Family | 159 | 9 | 30 | 3 to 1 | 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. 
