Palm Springs, Desert Hot Springs, Palm Desert, Rancho Mirage, La Quinta and Indio, California
The REO market is now dominating the multi-family segment of the Sales in our area.
August of 2008, a traditionally slow market here because of the summer heat had seven total sales.
Four were REO’s. Two were Short Pays. One was a traditional sale.
Four properties were duplexes in Cathedral City. These duplexes sold for well over $400,000 in 2005/2006. They are now going as low as 199,000….a reduction of 55% from the peak of the market.
One property was a new triplex condo project in Palm Springs.
One property was a high end totally renovated four plex in the Tennis Area of Palm Springs.
One property was a duplex in Desert Hot Springs.
The REO properties are sold vacant and require renovation from minor cosmetics to general contractor type of repairs.
I believe the multi-family market will continue to decline until rents begin increasing.