Jeannie Niles Real Estate Investment
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Palm Springs Market Watch: November 2009
Palm Springs Area - (Palm Springs, Cathedral City, Rancho Mirage, Desert Hot Springs, Palm Desert, La Quinta, Indio, Bermuda Dunes)
Inventory Rose 5% from October….still at an all time low.
I’m having a lot of success getting short sales approved on Investor Owned Property.
Market slowed slightly prior to Thanksgiving Holiday.
Rental Market is slow due to unemployment issues in the valley.
Currently On The Market
Condos - 116 REO, 142 Short Sale
SFR’s - 309 REO, 485 Short Sale
Multi-fam - 9 REO, 18 Short Sale
Short sales are increasing since banks are realizing a short sale is far less costly than having a foreclosure.
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 | 3173 | 307 | 336 | 718 | 1.1 to 1 | 20% |
| Condos | 1518 | 118 | 86 | 314 | 1.5 to 1 | 13.4% |
| Multi-Family | 112 | 6 | 9 | 18 | 1.2 to 1 | 13.4% |
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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This is the lowest inventory we have had in five years!
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I’m having a lot of success getting short sales approved on Investor Owned Property.
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The season officially begins 10/1/09. Many investors purchasing properties for cash.
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Fewer foreclosures, many more short sales. Rental market firming up.
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On investment property it is common to enjoy a 7% cash on cash return…. Where else in today’s financial market can you achieve this kind of earnings safely?
Every investor's situation is unique, and I have over 25 years experience solving problems. Use the form below to ask me about your unique needs.
Jeannie Niles Real Estate Investment
P.O. Box 317
Palm Desert, CA 92261
P: (760) 360-4020
F: (760) 340-9069
E: jniles@realestate-investment.com
