I do my own research and opinions on this blog are only mine based on direct observations and research that I do on a daily basis.
I read the local Palm Springs newspaper, The Desert Sun, which can also be accessed as http://www.mydesert.com/apps/pbcs.dll/section?category=business04
An article published 2/12/08 “Dissecting area real estate woes” describes a different real estate market than I know in the Coachella Valley. This article states that the average home price has inched up in the last year. I am certain by selecting the right criteria a case to support this could be made.
The reality of the market as I am seeing it is that prices have fallen 35 to 50% in some types of product in this area.
Examples:
Three Bedroom, Two Bath Single Family Home, Desert Hot Springs, 1500 square feet, 15 years old, excellent condition.
| 2005 sale price | 2007 sale price | Percent Decline |
| $270,000 | $170,000 | 37% |
Two Bedroom, One Bath “Indian Creek” Condo, Palm Desert.
| 2005 Sale Price | 2007 Sale Price | Percent Decline |
| $220,000 | $114,000 | 49% |
Three Bedroom, Two Bath Single Family Home, Cathedral City, 1750 square feet, 15 years old, excellent condition.
| 2005 sale price | 2007 sale price | Percent Decline |
| $365,000 | $220,000 | 40% |
The sales prices reflected above are under replacement cost. I would not anticipate prices falling much further.
Hi, I'm Jeannie. For over 25 years I've helped investors make money in markets both good and bad. 
