Check out this cool infographic about why “Americans Are On The Move” and what they are thinking about the West Coast real estate market.
Check out this cool infographic about why “Americans Are On The Move” and what they are thinking about the West Coast real estate market.
For the past few years the sounds of new home development in Palm Springs have been silent, the plaques of home builders along the entrance to our desert towns disappeared. For example, parking spaces at the South Palm Springs Oceo development remained empty while the Koffi next door was booming. The Port Lawrence sign disappeared to be replaced with a nicely landscaped parking area. Escena lots remained virtually vacant with no activity other then golfer and diners enjoying the clubhouse.
Over that last months the signs of new home development have been budding: Oceo’s new parking lot looks busy; residential developers signs, like Escena’s Alta Verde and Lennar, are popping up on the entrance to town; plans have been approved to start the new downtown development and a final tour of the Fashion Plaza took place this Tuesday before they demolish the building.
Developers have been responding to what they see as pent-up demand in the market by purchasing land and finished lots. While mortgage lending is still tight and appraisals are still low, building homes on finished lots allows the developer to save on upfront costs. Look for homes to be built in phases; developers to specialize in a specific design; certain builders, like Lennar, to include upgraded items in the base price as an enticement and developers to focus on creating an enhanced lifestyle experience, Sol a new project in central Palm Springs will be centered around a communal dog park.
We knew it was getting tough to find homes under $300,000 here in the Palm Springs area (which is in Riverside County), but the LA Times published a report today showing some startling statistics.
Foreclosure filings fell in September to the lowest level in more than five years, according to a report by RealtyTrac released Thursday. Substantial decreases in California and some other states hard hit by the collapse of the housing bubble helped reduce filings to 180,427 last month, down 7% from August and 16% from a year earlier. The last time filings were that low was in July 2007. This is contributing to a lack of affordable inventory.
Typically- when inventory is down, prices rise- basic law of supply and demand.
Investor groups have been flooding the market with cash, beating out traditional buyers who are financing their home purchases. Its not unusual to have multiple offers on properties, bidding the price up, 10 to 15% over asking if not higher. We recently sold a home in the Vista Las Palmas neighborhood- the asking price was $650,000. There were 7 offers and the final sales price was $800,000. Our buyer felt lucky that he won the competition!
That being said, there are still good buys out there- even with prices on the rise, they’re still significantly lower then what homes were selling for at the height of the market in 2006. Difficult lending qualifications and the current frustrating appraisal process, are keeping prices relatively steady. Coupled with historic low interest rates hovering around 3.5%, purchasing a home still remains an attractive investment, if you can get one!
For more information and to read the complete article, click here.
We’re seasoned Realtors at The Paul Kaplan Group- we’ve been through this real estate cycle before- if you’re interested in purchasing a home in the Palm Springs area, we’ll be happy to help, and advise you on the best competitive tactics to use to be the winning bidder for your home purchases.
As we ease out of the great recession, Real Estate is having a come back here in Palm Springs and across the country. Open any newspaper these days, and you’ll see a report about housing prices starting to increase. Per the following, prices nationally are up 2.7%. As the general public gains more confidence with the economy, more people are seeking out real estate to take advantage of low prices and low interest rates, in Palm Springs, and many other cities across the US. See below for the latest study:
Home rise for third consecutive month in May
Home prices nationwide, including distressed sales, increased 2 percent on a year-over-year basis in May 2012 compared with May 2011, according to CoreLogic’s May Home Price Index report. On a month-over-month basis, home prices, including distressed sales, also increased 1.8 percent in May 2012 compared with April 2012. The May 2012 figures mark the third consecutive increase in home prices nationwide on both a year-over-year and month-over-month basis.
Excluding distressed sales, home prices nationwide increased 2.7 percent on a year-over-year basis in May 2012 compared with May 2011. On a month-over-month basis excluding distressed sales, the CoreLogic HPI indicates home prices increased 2.3 percent in May 2012 compared with April 2012, the fourth month-over-month increase in a row. Distressed sales include short sales and real estate owned (REO) transactions.
If now is the time for you to purchase a home in Palm Springs either as a primary residence, vacation home or rental property, give us a call a The Paul Kaplan Group. We’ll be happy to discuss our current market conditions and assist you with makig a smart real estate investment in Palm Springs. 760-285-8559
Every market in Real Estate is unique- Palm Springs is no different. Judging by the national news, one minute you’ll read half the homes sold are foreclosures; the next article will say prices are as low as they’ve been in 10 years, and then another will say foreclosure listings are drying up. What should you believe?
In February of 2011, we had almost an 8 month supply of inventory- What does that mean? Basically, at the rate of sales, it would take about 8 months to sell off all the inventory of homes available at that time. By comparison, in April of 2012, there’s only about a 2 month supply of homes, down over 60% from February 0f 2011.
Why do we look at these inventory numbers or care? Well, 3-4 months of inventory is average. Right now we have less then the average amount of homes to sell. What that will typically indicate, is that we may start seeing prices increase. Real estate is about supply and demand- no supply equals greater demand equals higher prices.
What’s going on with the average sales price? In Palm Springs, the average asking price for homes is about 10.6% higher then it was in February 2011. However, the actual selling prices of homes is about 2% less then it was in February 2011. There are a number of reasons for this, one could be the amount of actual homes being sold is down. The average sales price in March 0f 2012 comparted to April 2012, was up 3.5%. So my guess is because of the lower amounts of inventory, our sales prices declined slighting in April.
How long are homes staying on the market? That hasn’t really changed since February 2011 in Palm Springs. The average days on the market is 95.
Interest rates, its been reported, are also at an all time record low. This is one of the factors contributing to the amount of buyers entering the market, causing more competition for homes. Despite what some reports indicate, lenders are writing loans for purchases for those buyers with good credit and income that can be documented. We’re seeing downpayments of 10% to 20% typically, usually higher for foreign national buyers
Overall, we are seeing a shift in the market quickly- there are more buyers then we have homes to sell- as a result, the majority of offers we have submitted on homes at The Paul Kaplan Group, have resulted in multiple offer situations, competing with other buyers. At the end of May, we have 17 homes in escrow; out of those homes, 12 of them had multiple offers that we were competing with. We have a team of experienced agents that have excellent negotiation skills, and have been successful counceling our clients on how to present the winning offers that get accepted. So although it is challenging right now for buyers, with the proper strategy, you can buy a home!
Can you still get a “deal?” Yes- its doubtful you’ll get a house for less then 95% of the asking price in this market, but keep in mind that price is still probably lower then what it has been in 10 years. What about foreclosures? Yes, there still are some- keep in mind a foreclosure probably has been neglected and will need a significant amount of work- we’re not seeing anywhere near the amount of foreclosure listings that was used to see two and three years ago Regardless, it is still a good time to buy, according to experts.
The Paul Kaplan Group is here all summer to assist our clients with either selling their homes or purchasing a new one. Please call us for any additional information regarding today’s market. We’re here to help buyers and sellers navigate this ever changing real estate market, and to understand the Palm Springs market, compared to the national real estate news.
The following article was posted on the National Association of Realtor’s website. This article echos whats going on in Real Estate in Palm Springs as well- sales have been robust this past year- we’ve suddenly entered into a period of extremely low inventory. Although we have not seen prices start to sky-rocket in Palm Springs, we are seeing multiple offers that are starting to drive prices North. Maybe the balance is shifting a little- regardless, hopefully its a good sign of economic recovery and a balance of the real estate markets in Palm Springs, as well as the entire United States.
WASHINGTON (April 26, 2012) – Pending home sales increased in March and are well above a year ago, another signal the housing market is recovering, according to the National Association of Realtors®.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, rose 4.1 percent to 101.4 in March from an upwardly revised 97.4 in February and is 12.8 percent above March 2011 when it was 89.9. The data reflects contracts but not closings.
The index is now at the highest level since April 2010 when it reached 111.3.
Lawrence Yun, NAR chief economist, said 2012 is expected to be a year of recovery for housing. “First quarter sales closings were the highest first quarter sales in five years. The latest contract signing activity suggests the second quarter will be equally good,” he said.
“The housing market has clearly turned the corner. Rising sales are bringing down inventory and creating much more balanced conditions around the county, which means home prices will be rising in more areas as the year progresses,” Yun said.
The PHSI in the Northeast slipped 0.8 percent to 78.2 in March but is 21.1 percent above March 2011. In the Midwest the index declined 0.9 percent to 93.3 but is 16.9 percent higher than a year ago. Pending home sales in the South rose 5.9 percent to an index of 114.1 in March and are 10.6 percent above March 2011. In the West the index increased 8.7 percent in March to 108.0 and is 9.0 percent above a year ago.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.
NOTE: Existing-home sales for April will be reported May 22, the next Pending Home Sales Index will be released May 30 and first quarter metro area home prices will be released May 9; release times are 10:00 a.m. EDT.
Information about NAR is available at www.realtor.org. News releases are posted in the website’s “News and Commentary” tab. Statistical data in this release, as well as other tables and surveys, are posted in the “Research and Statistics” tab of www.realtor.org.
Paul Kaplan of The Paul Kaplan Group announced today the return of Escena Palm Springs, a This Century Modern home development in Palm Springs, CA. Escena, like many other new home developments lay fallow during the economic downturn, but builders are responding to increased demand for homes in the Coachella Valley.
“This Century Modern designs are a spin-off of Mid-century Modern which are still the rage in Southern California,” remarked Kaplan, owner of The Paul Kaplan Group, a real estate firm that specializes in Mid-century Modern resale homes in Palm Springs. Continuing, Kaplan says, “but the major differences are in the construction. In newer homes, buyers get the sleek architecture combined with modern features like upgraded insulation, electrical, and energy-saving features. Plus, the developments offer features such as world-class golf courses, club houses, and as in Escena, top-notch restaurants. You get it all.”
During the economic downturn, Escena’s builder, Lennar, like many other builders in the area, stopped building with the intent of letting the development lay fallow until the market improved. Alta Verde, the new developer at Escena Palm Springs, recently announced that it is set to build 130 new luxury homes in the “This Century Modern” community. Alta Verde will launch four distinctive modern home designs that range from 2,000 and 2,800 square feet, which provide open floor plans, stunning architecture and dramatic desert views. Reservations for sales will commence this summer.
And, the existing homes at Escena have remained popular. “There is currently just one of the original Escena homes originally built by Lennar being offered. The home has all of the luxury amenities that buyers want, and has a sleek Modern style. This Century Modern home features generously sized bedrooms and more bathrooms, a two car garage with golf car partking, wet bars, and guest casita. The kitchen comes with under cabinet lighting, islands, and so on.” Click here for more information.
Escena Palm Springs, for instance features a top notch Jack Nicklaus-designed golf course that was voted the 6th best public golf course in California. An elegant $15 million clubhouse that features Chef Oscar Ayala’s legendary Escena Grill which is sure to please golfers and fans alike. “We are very proud to present these homes as Escena makes its reappearance in the This Century Modern home market,” added Kaplan. “We’d like to invite everyone who is interested in Mid-century Modern design but wants the latest features in building and design to tour Escena.”
The Paul Kaplan Group office is located at 1701 N Palm Canyon Drive Suite 5, Palm Springs, CA, 92262 and can be reached by phone at 760-459-1396 or via email at firstname.lastname@example.org. Their website
is located at www.PaulKaplanGroup.com.
Their retail store is located at Raymond | Lawrence, 830 North Palm Canyon Drive, Palm Springs, CA.
Check out our latest Escena post here
Frank Sinatra had a number of homes in the Palm Springs area over the years- Probably the most famous is the one by E. Stewart Williams, Twin Palms, in the center of Palm Springs.
However this is his family estate that he built in Rancho Mirage, in the Tamarisk Country Club. It just hit the market at a whopping $4.5 million! Built in 1970, it consists of 4 bedrooms, 6 baths, in 6900 sf of living space on a lot that’s 21,344 sf.
Heres the description from the actual listing:
Former FRANK SINATRA Family Estate – Built by Sinatra on land originally owned by JACK BENNY; Named WONDER ESTATES — This Upscale home has had guest Celebrities, Movie Directors, and the Rich & Famous! Expansive backyard on the 17th Double Fairway of Tamarisk Country Club; Tennis Cts in C.C. Over 6,900 sf., 4 Bedrooms, 6 Bathrooms — Elegant Versace Furnishings; Gourmet Kitchen w/triple Stainless Refrigerator for those who like to Cook, like Frank did! Pool Table, Gym, Big Screen TVS, Resort-Style Pool & Spa w/Waterslide; over 20,000 SF of pristine landscaped grounds; Outdoor BBQ & Party Island; Filmed for TV by CBS Channel 2! FULLY TURNKEY FURNISHED — Bring your Bathing Suit & Toothbrush! Located in CENTER OF PRESTIGIOUS RANCHO MIRAGE — 5 Minutes to The River, Eisenhower Medical; 5-Star Restaurants; Theatres; Agua Caliente Spa & Casino; Shop & Dine at The River or El Paseo. YES, IT’S THE GOOD LIFE!
Guess what, its offered furnished too!! Ok, this isn’t the typical groovey mid-century home that we typically feature- as you can see from the pics- but if living in a home that has some celebrity pedigree sounds appealing to you, then this is your house! (and no doubt it could be a great vacation rental that could most likely generate big bucks!)
Here are more pic’s:
Listed by Power Brokers International. Listing informatin courtesy of the Desert Area MLS. For more information, contact The Paul Kaplan Group.
From one of our agents at The Paul Kaplan Group in Palm Springs, Kris Rain:
Meet Craig and Diane, our new homeowners in Racquet Club Estates, Palm Springs- this cool mid-century home built by the Alexander Construction Company, is their first home purchase! They did their final walk thru today and brought their dog Winston who walked right in and sat in the pool. Welcome to Palm Springs!
The bad news for the housing market sometimes seems like it will never end. In the last round of housing data, home prices continued to drop as did the number of home sales. Foreclosures remain a major weight dragging down everything, and then there’s the massive shadow inventory of distressed homes that will create more supple overflow as they are brought on the market. Add up all of that, and suggesting now is a good time to buy a home is probably less popular than supporting Anthony Weiner. But along with all the bad news are in fact some compelling reasons for getting serious about buying right now. For example, home prices have come down so far in many markets it now makes the cost of buying a better financial deal than renting.