After several months of city-by-city Palm Springs area sales increases, the August MLS numbers finally show some slowing when comparing August 2010 with August ‘09. Our impression is that continued double-digit price increases in many valley cities could be starting to ‘price out’ some local buyers or at least put some prospective buyers on the sidelines.

As an example, La Quinta recorded an average price increase of 12% in July 2010 and then 13% in August 2010 compared to the same months in ’09.  To date, many buyers that invested during the summer of ’09 have seen some nice appreciation over the last year.

As usual, Sheri will be publishing the city-by-city August sales and price results in her upcoming monthly real estate newsletter. Click here to subscribe now. 

Source: Desert Area MLS®

The National Association of Realtors® reported today in the national media that existing (resale) home sales nationwide dropped 27.2% in July of 2010 compared to July ’09. “National sales are at the lowest level since the report began being released in ’99, and single family homes – which account for the bulk of sale transactions – are at the lowest level since May ’95,” the report indicated.

In marked contrast, sales here locally increased during July 2010 in La Quinta (up 3%), Palm Desert (up 9.5%) and Rancho Mirage (up 12%) compared with July ’09. The average sales price also increased in all three cities.

Palm Springs and Indio did show slightly reduced sales in July as these cities recorded lower average sales prices, but again the average sales prices increased in both Palm Springs and Indio. Palm Desert and Rancho Mirage posted a decline in the average July 2010 sales price, which seems to reflect a large number of condo sales in those cities that month.

La Quinta July Sales
July 2009: 106 sales @ $477,228 average selling price
July 2010: 112 sales @ $542,238 average selling price

Palm Desert July Sales
July 2009: 95 @ $431,295
July 2010 106 @ $300,092

Indian Wells July Sales
July 2009: 17 @ $926,265
July 2010: 17 @ $1,009,288

Rancho Mirage July Sales
July 2009: 44 @ $615,166
July 2010: 50 @ $504,030

Indio July Sales
July 2009: 141 @ $174,242
July 2010: 110 @ $199,128

Palm Springs July Sales
July 2009: 151 @ $295,156
July 2010: 128 @ $315,805

So there you have it. Real estate continues to be local and it’s all about location, location, location! Winter is approaching and an increasing number of people are looking for their place in the sun!



I mentioned in a previous post that if you choose to rent out your vacation home or condo, you should let your agent know. But what is considered a vacant home? We checked in with local agent Richard Cox of Cox Insurance to get the scoop on this subject.

“Insurers know that vacant homes have a much higher occurrence and severity of damage,” Richard said. “Most companies want the homeowner to be in the home every 30-days, but will accept a visit from friend or even a hired property watch type service.”

“There are many official and unofficial services of this type offered in our desert.  Most carriers will accept this type of service.  Many of these services will feed cats, walk dogs, flush toilets and even run sinks and water plants.  Some will even send or email a ‘property check report’ to the homeowner at a very reasonable cost. These documented reports are perfect for showing insurance carriers that the property was not abandoned in the event of a claim.”

“Short term rentals are often the most miss-categorized property.  Second homeowners really need to let their insurance agent know if they are renting it for periods of less than six months.  There is almost nothing worse than finding out there is a problem when you are filing a claim.”

Many of the local property watch services charge as little as $30 to $35 per visit to check a property. Thank you Richard for this important information. Richard  Cox can be reached at (760) 797-1800

During the last six months in La Quinta, 594 homes and condos were sold totaling over $360 million. This puts the average La Quinta sale so far this year at $606,322.

Of the total, $55 million were bank owned property sales and $38 million were short sales. The ratio of regular sales versus bank owned and short sales continues to grow at a brisk pace over last year. 

Question) Do most communities allow short or long term rentals in the desert?

Answer) Each community HOA has their own rules and regulations including rules regarding renting your property. Some HOA’s allow short-term daily and weekly rentals, while others allow only longer-term rentals of one month or more.

We can guide you on the rental policies governing most popular desert communities. You are also entitled to receive a copy of an HOA’s CC&R’s and rules during escrow and before committing to a property purchase.

Communities without an HOA generally have no rental restrictions although city regulations may be in place.