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

Inventory increased 3% from September, but still 30% less than January 31, 2009.

The season officially begins 10/1/09…. Reason for slight increase in new listings.

Banks now agreeing to short sales on investment property.

Many investors purchasing properties for cash.

70% of new listings are regular sales (not Bank Owned or Short Sales)

Condos - 341 total, 43 REO, 27 Short Sale
SFR’s - 777 total, 158 REO, 101 Short Sale
Multi-fam - 24 total, 8 REO, 3 Short Sale
Here’s an example of a duplex that sold this month…..multiple offers in 4 days!

In order to be successful in getting a good property at a great price, it’s important to be ready to submit an offer as soon as the property comes on the market. Get a qualification letter from your lender and have your “proof of funds” to close escrow available. I try to submit the first offer when a great property hits the market.

Real Property Investment is now earning 6 to 8% return on your investment. Income property is once again “creating income”.

Some explanations of my report:

Total Inventory tells 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.

Pendings tells us how many properties went into escrow for the month. This gives us a very quick picture of the current activity.

Type	Total Inventory	Contingent Other	Pendings	New Listings	New Listings/Sales Ratio	Sales As Percent Of Inventory
Single Family Homes	3000	343	404	777	1 to 1	24.9%
Condos	1448	95	69	342	2 to 1	11.3%
Multi-Family	119	13	8	35	1.7 to 1	17.6%

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.

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