We never want a repeat of 2009 in Palm Springs, what felt like the depths of the Recession….  The good news, is that things are picking up in Palm Springs, as reported in The Desert Sun this past week.   The following are highlights of the article that shows Palm Springs is experiencing an economic recovery.

Palm Springs has experienced a surge in tourism; tax revenue from hotel stays up 17.7% from 2010 to 2011,  and new airline routes by Virgin America connecting the city with New York and San Francisco are expected to open up the link for visitors from the East Coast.    

Real Estate is also on an upswing in Palm Springs.   Housing prices are  up over 10% from 2009 to present, showing an ever increasing demand for Palm Springs Real Estate.  People are scouring the market for great deals on vacation homes, after a few years’ drought of buyers waiting for the economic climate to improve.  The Paul Kaplan Group experienced record sales in 2011, to become #1 in sales for the year in Palm Springs.  2012 is proving to be as robust with over 21 homes sold by the Paul Kaplan Group in January, as buyers flock to the desert to buy 2nd homes, and vacation homes.

The local Palm Springs economy is further boosted by the high season events:   International Film Festival(this year attracting the likes of Brad Pitt, Angelina Jolie and George Clooney). We’re gearing up in February, for the annual Modernism Week, celebrating the wondrous architecture of the desert with works by Albert Frey, A. Quincy Jones and William F. Cody.  Tickets for the events are mostly already sold out.   And in April there’s the Coachella Valley Music and Arts Festival,one of the biggest and most profitable outdoor concerts in the country. This year it extends over two weekends this year from April 13-22 and brings performances by Radiohead, Florence + the Machine and David Guetta.

“Bohemian spirits in search of eternal sunshine and a less hurried urban life have always been at the root of desert migration, and those dreaming of a different life fuel many of the city’s burgeoning businesses — quirky cantinas, mid-century antique shops, lively bars and restaurants,”  says Michael Martin.  The Saguaro Hotel is a vibrant new venue operated by the Joie de Vivre hotel chain, opening Feb. 1, promises to infuse life to the South Palm Canyon area with vibrant guest rooms and lively restaurant. 

Cheeky’s Restaurant has proven one of the city’s tastier success stories and become an eatery known for its creative healthy breakfasts and feel-good foodie lunches. Last year, the restaurant added a pizza eatery called Birba next door, and this year the company has expanded to include the Alcazar Hotel.  Alcazar Hotel sits just west of the city’s downtown stretch, on the edge of the Palm Springs design district amid stylish antique stores, clothiers and art galleries.  Lulu’s, opening this past year in downtown Palm Springs, is a hip trendy new restaurant that has become a popular hot spot for visitors and residents alike.  One of the hot spots in Palm Springs, with a booming successful business, is Trio, voted one of the  top restaurants in town.  They recently started a lunch service which has proven to be very popular.

The recent demolition of the decrepit Palm Springs Fashion Plaza in January, show signs that redevelopment is finally underway in the downtown core of Palm Springs. 

All good news for the recovery of Palm Springs…  Many people including myself,have commented that after a tough few years, it feels like we’re about to experience another Palm Springs Renaissance!  Bring it on!

To Read the full article, click the link below:

Palm Springs Is in Economic Bloom Again

Check out the August update for home sales by the California Association of Realtors’ cheif economist:

http://videos.car.org/mediavault.html?menuID=1&flvID=10

California home sales and price edge up from July
California home sales edged up 1.8 percent in August compared with July, but were down 14.9 percent from August 2009, C.A.R. reported today. The statewide median home price also increased 1.2 percent from July and was up 8.6 percent from a year ago.

“Buyers who are holding out should consider the opportunities in today’s market,” said C.A.R. President Steve Goddard. “Favorable home prices and interest rates at or near historic lows make housing affordability the best in recent memory. Anyone who is in a position to buy a home should do so before either of these key factors rise.”

The statewide median home price posted its 10th consecutive year-over-year gain in August. The median price of an existing, single-family detached home sold in California during August 2010 was $318,660, an 8.6 percent increase from the revised $293,400 median price recorded in August 2009, C.A.R. reported. The August 2010 median price was up 1.2 percent compared with July’s $314,850 median price.

“The housing market is transitioning from the conclusion of the housing tax credits as is evidenced by stronger home sales in the higher-price range and weaker sales in entry-level homes and condominiums, which are typically favored by first-time home buyers,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “As a result of the strength in the upper-end market and inventory levels that are higher but still lean by average, we’re seeing home prices holding steady.”

If you’ve thought about taking advantage of current conditions by buying a home in Palm Springs, please give us a call, we’d love to help you out! 760-285-8559 Modern Real Estate Group

I read the following article in About.com about caring for your dogs for those that live in Phoenix (Same type of severe weather that we have in Palm Springs). Most of it is just common sense. But for those of us that are dog lovers, there are some valuable tips offered here:

Per a recent post on CNN Money, Vacation Home Ownership is on the rise.  Per Liz Westman, “Don’t listen to the naysayers. Rentals can cover your second-home costs if you’re careful when you buy and you follow these 3 simple rules.”

In Palm Springs, many people rent out their homes as vacation rentals.  The Palm Springs market is a popular destination for many travelers looking to escape, and wanting the comforts of a private home, as opposed to a hotel room.  Palm Springs draws from a number of states all over the country, in addition to being only two hours from Orange County, San Diego and Los Angeles.  Buying a second home in Palm Springs and renting it out, is a viable option for many.

Per the article, for a successful vacation home rental, here are the three basic tenents:

• Vacation homes need to be rented 15 to 17 weeks a year in many areas to break even. This estimate is based  on the assumption that one month’s mortgage payment would equal one week’s rental income in the peak season. More expensive homes would need to be rented longer. 
• Internet advertising is essential. You need to reach the widest possible audience of potential occupants to keep your place solidly rented.  The more sites you can post on, the better. 
• Owners need to cut out the middlemen. Management companies take anywhere from 10% to 60% of rental income, making positive cash flow impossible. Handling rentals and maintenance isn’t that tough, even long distance.

Many of my clients rent out their 2nd homes here in Palm Springs on a part time basis.   Let me help you find the perfect 2nd home, and I’ll be happy to share with you my knowledge of what is involved with making it a successful vacation rental. 

To read the full article, click here.