The significant drop in the supply for Palm Springs area resale home inventory has builders starting to build new homes again in the desert. Local Desert Sun Newspaper reporter Mike Perrault called to interview me last week about this trend and the article was published on July 1st.
Major Points of the Desert Sun Real Estate Article
In June, the inventory of existing single-family houses for sale in the valley fell to 2,023, with another 1,023 condos available, the California Desert Association of Realtors reported. That’s down from about 6,200 in February 2011.
“I think (builders) recognize, and they’re telling me, that they believe was are finally at the bottom,” said Bill Blankenship of the building Industry Association of Southern California.
For giant home builder Lennar, customer traffic and sales have doubled at its communities over the past four months, said Greg McGuff, president of homebuilder Lennar’s division that encompasses Riverside, San Bernardino, Los Angeles and Ventura counties. After selling out its mid-century modern homes at the Motif at Escena community in Palm Springs, Lennar has introduced new models at the Skylar and Avant areas within Escena. “We’re selling well into the future and raising prices in all of our communities,” McGuff said.
Sheri’s Comments In The Desert Sun
Sheri Dettman, a Realtor with Sheri Dettman & Associates, affiliated with Luxury Homes by Keller Williams Realty in La Quinta, received an invitation last week to help market Lennar’s homes Toll Brothers Luxury Homes.
Dettman said builders have seen that valley home prices are rising, inventory is tight and new homes are again on buyers’ radars.
Half a dozen new-home developments that stalled have been revitalized by new owners, and other builders are stepping in with smaller developments of 20, 30 or 40 homes.
Dettman is communicating with about 600 interested buyers, and one challenge she is seeing is that there aren’t a lot of active new-home developments.