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Real Estate Market Updates

Palm Springs Area Real Estate Market Update

Coachella Valley home prices, sales, and inventory show a healthy real estate market in a time of the COVID-19 pandemic.

Courtesy of Palm Springs Life: STEVEN BILLER MAY 12, 2020 CURRENT DIGITALHOME & DESIGNREAL ESTATE

Photo courtesy of Desert Willow Golf Resort

Home prices and inventory appear stable in the Coachella Valley, and indicators — such as leads, showings, and offers — suggest the COVID-19 pandemic is having little effect on the local real estate market, experts said Tuesday during an industry webinar.

“Ladies and gentlemen, we are not in a real estate crisis,” Brady Sandahl of Keller Williams told the audience of real estate agents and brokers during the Market Watch Spring Webinar, a Palm Springs Life event. “We are in a challenging market. We’ve been in a high tide for the last 10 years, and now there’s a health crisis, an unemployment crisis, and an economic crisis.”

But in the Coachella Valley, Michael McDonald of Market Watch beamed, “Inventory remains contained. There’s no rush to sell or put homes on the market.” On March 1, there were 3,019 available units on the market in the valley. On May 1, there were 2,924. “Inventory is not increasing, yet,” he explained. “If it doesn’t rise, it’s a good sign.”

Likewise, the price per square foot appears stable — $244 a year ago and $238 on May 1. The slight dip coincided with the issuing of California’s stay-at-home order in March.

“Prices will likely stay right where they’re at,” said McDonald, who analyzes sales and price data for single-family homes and condominiums in the market. He also predicted that real estate would be among the first industries to recover nationwide because it requires no risky proximity like, say, a restaurant or a movie theater.

Walter Neil of Franklin Loan Center emphasized the need for real estate professionals to discourage forbearance, which went into effect March 18 and allows borrowers to temporarily stop making payments on government-backed loans without risk of foreclosure.

Someone who’s motivated to sell will likely get the asking price in or around the unchanged average length of time on the market. But a seller hell-bent on fetching a premium price might need to be more patient.

Borrowers will not only make good on those missed payments — often in one lump sum — but their credit score will take a hit, as well. “This should be a last resort,” Neil intoned. “Only people who lost a job and have no resources should consider forbearance.”

Otherwise, Neil was as optimistic as Sandahl and McDonald. “I refer to the three-legged stool of recover,” he said. “One leg is monetary policy — the Federal Reserve keeping unemployment low (because unemployment puts pressure on the real estate markets; people need to pay their mortgages) and putting money into the market, which they’ve done with unlimited quantitative easing. The second leg is fiscal policy, which Congress did with the CARES Act. The third leg is COVID-19 containment.”

Neil points to the record-low interest rate, 3.125 percent, as a reason to get into the market, while Sandahl encouraged agents and brokers to listen to their clients. Ask questions. Understand motivations.

“It comes down to whether a home is priced to sit or sell,” Sandahl says. Someone who’s motivated to sell will likely get the asking price in or around the unchanged average length of time on the market. But a seller hell-bent on fetching a premium price might need to be more patient.

Webinar sponsors included Toscana Country Club, Andalusia Country Club, Franklin Loan Center,  Palm Springs Regional Association of Realtors, and the California Desert Association of Realtors.

The fall Market Watch webinar is scheduled for November. For more information on Market Watch, click HERE.

Home Buying and Selling during Coronavirus OCVID-19 – Update in the Palm Springs Area

Dear Clients,

I wanted to reach out and make sure you know my team and I are here for you in this historical time.
To our families with children whose schools have shut down, to our senior citizens, to our heroes at the hospitals, the grocery stores, and our first responders, to our local businesses struggling and to anyone impacted by this pandemic, our hearts go out to you.

For the last 13 years, I have been in real estate right here in the Palm Springs area. My team and I have been in many of your homes, we've seen your families grow, and we feel very much a part of this community. We want to extend an offer to help our community in these times of need. If you or anyone you know need anything, we are fortunate enough to know people who may be able to help with a grocery store trip, watching children, or even getting bills paid.

Again, if you need anything do not hesitate to reach out, it does not need to be about real estate. Many members of this community have reached out this last week. If you are concerned about the real estate market, I have listed some questions I am getting regularly:

How do I sell my home at this time?

Homes are still selling. Our Federal Reserve just dropped their interest rate to near zero to keep the money moving for people buying homes. It’s quite unprecedented.

How do I meet with you and still practice social distancing?

If you are in town, we can speak on the phone instead of meeting. A good percentage of our homes are listed and sold, without us ever meeting our sellers in person because they are not in town to begin with. For our buyers, we can take video if needed, and most of the homes these days have a virtual tour for you to get a better idea of the home. If we've already met with you and know what you like and dislike, we can eliminate homes that we know are not going to check your boxes.

What if I don’t want to show my house to strangers right now?

We may be able to sell it without showings. If we do need to show your home, we’ll provide sanitizer and anything else the CDC recommends for lowering everyone's risk of infection. Safety is our #1 priority for you.

Are housing prices dropping – should we wait to buy or sell? 

Some of the top Google searches now in real estate are “home prices dropping” and “home prices falling”. That’s not the case currently. We still have a housing shortage and need inventory. We'll keep you updated on this.

As we work together a community to slow down this epidemic, the market is still active and we’re here to guide you and make fact-based decisions. We have your back. We're here to help if you need anything!  Let us know and please take care!

SilverRock Development Update

SilverRock Resort in La Quinta

Owned by the City of La Quinta and Managed by Landmark Golf Management, SilverRock Resort's Arnold Palmer Classic Course is a challenging 7,239 yards sprawling over 200 acres with massive native bunkers and stunning water features. Set against the backdrop and natural beauty of the Santa Rosa Mountains, SilverRock is a former home course of the PGA Tour’s Bob Hope Classic from 2008-2011.

Development Overview

The City, in conjunction with SilverRock Development Company, LLC, has created a development program for SilverRock Resort. The program includes a luxury hotel with branded luxury residential, a lifestyle hotel with branded lifestyle residential, a conference and shared services facility, a mixed-use village, resort residential village, renovation of the existing Ahmanson Ranch House, construction of a permanent golf clubhouse, and associated road and utility infrastructure.  This $420 million dollar project specifically encompasses:

  • A 140-room, 5-star quality luxury hotel and spa and a 200-room, 4-star quality lifestyle hotel;

  • A 71,000 square foot conference center and shared services facility shared by the luxury and lifestyle hotels;

  • A resort village with 150,000 square feet of resort residential units and up to 40,000 square feet of retail space with recreation areas;

  • 35 luxury and 60 lifestyle branded residential homes that are associated with their respective hotels;

  • 160 resort style homes for private ownership with the option for owners to offer as short-term rentals;

  • Renovation of the Ahmanson Ranch House facility as a public event center and to serve as an amenity to the resort; and

  • 5,000 square feet of temperature controlled space with large outdoor patios and event lawn.

To keep up to date visit:
http://www.laquintaca.gov/our-city/city-departments/facilities/silverrock-golf/silverrock-frequently-asked-questions


New Hotel Complex in Development for Indian Wells

A new hotel development that marries homes, condos and conventional hotel rooms is planned for Indian Wells.

Developers announced a proposal to build roughly 300 units – in the form of multi-bedroom villas as well as hotel rooms – in a project aimed at attracting multi-generational travelers who are looking for the space and privacy offered by a short-term rental with the careful standards seen in hotels.

The project, located near the Indian Wells Tennis Garden, is also planning the development of 60 to 80 condos, which can be managed by the hotel as vacation rentals.

“When we look at the way people are traveling, when we look at the evolution of the travel space, when we look at the rise of multi-generational travel, we think we’re on the cusp of another change in hospitality,” Phil Bates, a partner with TMC Group, a real estate development firm from Irvine, told residents in Indian Wells on Tuesday.

RELATED HOTEL DEVELOPMENT COVERAGE: Montage breaks ground on luxury resort in La Quinta

An architect's rendering of a new development planned for the corner of Highway 111 and Miles Avenue in Indian Wells. The project would build roughly 300 hotel rooms, along with condos and villas. (Photo: Submitted photo: TMC Group)

TMC Group officials, along with representatives from Fogelson Group, a Chicago-based real estate development firm, held a community meeting Tuesday at the Indian Wells Golf Resort to unveil the plans for the development proposed for the corner of Highway 111 and Miles Avenue near the Indian Wells Tennis Garden. The project would occupy about 10 acres.

The development team anticipates construction beginning early next year, with completion in 2019 or 2020.

The hotel building with its 300 rooms could be up to 85 feet tall, and is proposed for the back of the site away from Highway 111. Its height was of a concern to some of the roughly 100 residents attending the forum Tuesday.

HISTORY: First airport in Palm Springs was built for El Mirador Hotel guests

“I have a problem with 85 feet,” remarked Andy Elchuck, who lives nearby.

When asked about views of Eisenhower Mountain and other areas, Bates said, “some will be compromised.”

Development plans for the site go back more than a decade when the Fogelson Group proposed building 129 residences and villas. The Fogelson Group is headed by Jerry Fogelson, well-known for his local philanthropy and generous contributions to the Palm Springs Art Museum. He also serves on the board for the Desert Town Hall speaker series.

The property's future was put into question again in 2014 when Phoenix developer Denny Ryerson was unable to finalize an agreement with YAM Capital that would have provided the money he needed to buy out Fogelson and meet critical deadlines connected to his proposed condo development in Indian Wells.

READ MORE: Jerry Fogelson's Indian Wells project faded over decade

The project announcement comes as officials in La Quinta broke ground Monday at SilverRock, marking the start of development on a luxury resort that brings the Montage brand to the Coachella Valley. The project includes two luxury hotels which are scheduled to open simultaneously in October 2019.

Skip Descant is The Desert Sun’s tourism reporter. He can be reached at edescantjr@palmspri.gannett.com and @TDSskip

Existing Homes Sales Continue Sales Growth

The Financial news website CNBC reported this week that resales of homes in the U.S. rose to the highest level in nearly 8-1/2 years. On an annual basis, existing home sales increased 3.2% to the highest level since 2007.

These numbers seem to indicate that the U.S. economy is looking pretty good despite a drop in retail sales, and a slowdown in job growth during June.

Remember, Palm Springs Real Estate Is Local

This national real estate data is interesting and important, but as I always say, real estate is local, right down to the Palm Springs area golf & country club neighborhoods. For desert area homebuyers here’s what’s important right now:

  • The Price Segment
  • The Location
  • Finance
  • Community Or Property Back Stories

Golf Course Luxury Home At Andalusia, La Quinta

Price Segment

Every price segment in the Palm Springs area real estate market can be different. The sales comps for $400,000 condos in the desert have little significance on the buyer or seller of a $1 million country club property. And frankly, similar homes in different developments can often be worlds apart in sales trends.

Locations

A home or luxury condo in golf community “A” could be trending up in sales and value. By comparison, a similar property in another golf community just down the road can be trending in the opposite direction. We see this almost daily, and this makes real estate here in the desert local.

Finance

Cash is always king for buyers. The second best thing is having your finance ducks in a row before you discover you place in the sun here in the desert. Get pre-approved (not pre-qualified) by a local mortgage provider. Lot’s of mortgage providers including big national banks can make promises they can’t keep. Local specialists know the market and generally won’t deliver unwelcome surprises just days before closing.

Back Stories

Most every property, including our own Featured Properties, and certainly every development in the Palm Springs real estate market will have what I call a backstory. Backstories can include the owners reason for selling (lots of moving up this year), and information about adjacent listings and recent sales.

Top agents network with other top agents to research backstories. Knowing today’s sales comps is great, but it’s important to discover the real estate backstory for every home and community as well.

Backstories are much more unique to a large portion of the Palm Springs real estate market than most metro areas because this market has a so many niche developments. The Palm Springs area has a high concentration of master-planed, gated communities. Two of these communities in the same price range, and within the same city can have two entirely different backstories (and different sales and pricing trends) even though they are just blocks apart.

Busy & Experienced Is Also Important

 

At the end of the day, the most experienced, busiest, and thus, most successful Realtors likely know the comps and backstories that can best help their buyer clients find their home in the desert sun. Our Sheri Dettman & Associates team of specialists completes 10 times more transactions than the average Palm Springs area real estate.

Vacation Home Sales Up 57% Over Previous Year

Palm Springs Area Second Home Sales Update

Sales of second homes or vacation homes rose 57% in the U.S. last year compared to 2013 according to The National Association of Realtors (NAR). During 2014, 1.3 million vacation homes were sold which is a new record.

And according to this NAR survey, vacation homes accounted for 27% of all real estate transactions last year. The survey also found that 85% of vacation homebuyers think that now is a good time to invest in real estate.

These trends appear to parallel what we are experiencing here in the Palm Springs real estate market. 2014 was a record year for Sheri Dettman & Associates, and so far 2015 is tracking well ahead of last year.

Several Reasons Second Home Sales Are Strong

Palmilla Luxury Homes in La Quinta

Baby boomers remain a driving force behind second home sales. Many boomers have enjoyed a six-year market rally, and some of these boomers are now taking some of those gains out of the market and investing in second homes.

Related Articles: Information For Buyers

Many of our current boomer clients also tell us that as they move closer to retirement they are investing in second homes that they’ll later make their primary residence.

Desert Buyers Taking Advantage Of Today's Low Interest Rates

In past years, we saw a mix of about 50/50 cash versus loan purchases. This year however we’re seeing more buyers taking advantage of today's low-interest rates and conserving cash. That said, many mortgage experts expect interest rates to start rising sooner rather than later.

Canadian Buyers Coming Back Into The Palm Springs Market

As the Canadian Dollar retreated against the U.S. dollar last year, we experienced a pullback in second home purchases by Canadians. U.S. homebuyers, especially from within the State of California stepped up in large numbers to keep our market growing.

Now however we’re starting to see a lot of Canadian buyers jumping back into the Palm Springs area market, and in all price segments from affordable to luxury. We have also seen quite a few Canadians with existing Palm Springs area homes trading up this year.

Palm Springs Real Estate Market Update

Sorry About Our Warm Palm Springs Weather This Week!

Our Palm Springs weather this week is one major reason so many people choose to spend part of or all winter here and to invest in Palm Springs Real Estate. My husband Bill took the photo above just yesterday at Rancho La Quinta Country Club.

Daily sunshine this week, with high temperatures averaging about 82º F (27.7 º F) are certainly being enjoyed by locals and visitors alike. Seeing people enjoying our Palm Springs area golf courses, tennis courts, bike paths and of course thousands of pools testament to our sunny days.

As you can imagine, we have clients that have primary homes and businesses located throughout the United States and Canada. And over the last few weeks I’ve been getting tons of weather updates from many wet, cold and snowy parts of North America. Several of these clients have recently purchased Palm Springs area homes and are looking forward to returning to the desert later this month.

To Warm For Canadians?

Just yesterday, Carol, one of my Canadian homebuyers at Hideaway Golf Club in La Quinta was telling me that she’d prefer cooler weather. She'd prefer our February temps to be in the 70’s rather than the low to mid 80’s. I’m curious. Do other Canadian’s feel the same way or are you good to go with the 80’s?

How’s The Palm Springs Real Estate Market?

Personally, our Sheri Dettman & Associates team of specialists is busy. Our 2014 sales were up about sixteen percent over the previous year, and we are forecasting double-digit growth again this year. As we examine our local golf and country club community sales trends each month, we again see that Palm Springs real estate is local. And when I say local, I’m talking about right down to the neighborhood level.

Keep in mind that the national and even local news outlets usually report Palm Springs real estate sales on a city-by-city comparison level. They also reference the median priced home. But if you’re buying or selling in a gated luxury golf or country club community that information often has little or no bearing.

Before Buying Or Selling, Information Is Knowledge

Information is knowledge. And our goal is to help our buyer and seller clients be some of the best-informed buyers and sellers in the Palm Springs real estate market. A little extra knowledge can often result in a smoother and more profitable real estate transaction.

For our homebuyer clients, we develop community-by-community proprietary sales data down to a micro level before you make an offer. For our home seller clients, our community data can help price your home correctly while your home’s competition could be priced over or worse, under the market price.

Why Not Contact Sheri Dettman Today!

If you're considering buying or selling a Palm Springs area home or luxury condo, then contacting Sheri Dettman is a good thing. Why not do so today?

Stonefield Estates Next Phase Of New Homes Announced

Excitement is building, and so is the next phase of new luxury homes at Stonefield Estates in Southwest Indio.

Two new south facing plan-5M homes, a plan-3 and plan-1 home are now being built. Additional homes will also be available on several other lots located on this newly developed private cul-de-sac street.

Completion Scheduled First Quarter 2015

Scheduled for completion in the first quarter of 2015, pricing and details for these homes will be shared first with those registered on our Stonefield Estates VIP interest list before being released to the public the following week.

One south-facing plan-5M home will become Stonefield Estates new model home, and the developer will be offering an attractive builder lease back exclusively on that home.

Newly Updated Plan-5M Home

Based on buyer feedback, the developer is making several improvements to Stonefield Estates plan-5 homes. These plan-5M (modified) homes offer even more living space being expanded from 4,290 to over 4,800 square feet. You'll want to see these new open floor plans.

Impressive Amenities Included

Each Stonefield Estates luxury home features a distinctive one of a kind elevation and includes an impressive list of standard luxury features. Amenities include front and rear landscape, custom pool/spa and built-in grill, crown molding, wood beam in most great rooms as well as a sensational chef's kitchen featuring Wolf and Sub-Zero professional appliances.

Are You Connected?

Keep in mind that our VIP priority interest list gets information and details first, so please don’t hesitate to contact us. Email Sheri Dettman

Please Note: In a continuing effort to meet consumer expectations, the developer of Stonefield Estates at Santa Rosa (seller) reserves the right to modify maps, plans, specifications, materials, features, prices and colors without notice or obligation. Prices are subject to change. All square footages are approximate.

Palm Springs Area Real Estate Prices Rise Again Year Over Year

Andalusia La Quinta New Home Bath

Buyers of Palm Springs area homes and condos continue to find good values in most desert cities. That said, rising prices for properties sold during May 2014 have slowed overall unit sales a bit in some market segments. Foreclosure and short sale property sales during May dropped 50% compared with May 2013.

May 2014 Average Single Family Home Prices By City

  • Indian Wells: $1,684,000 (was $1,057,000 in May ’13)
  • Indio: $275,000 (was $258,000 in May ’13)
  • La Quinta: $726,000 (was $581,000 in May ’13)
  • Palm Desert: $597,000 (was $457,000 in May ‘13)
  • Palm Springs: $605,000 (was $525,000 in May ’13)
  • Rancho Mirage: $814,000 (was $773,000 in May ’13)

May 2014 Average Condo & Attached Home Prices By City

  • Indian Wells: $373,000 (was $373,000 in May ’13 - Unchanged)
  • Indio: $118,000 (was $104,000 in May ’13)
  • La Quinta: $405,000 (was $322,000 in May ’13)
  • Palm Desert: $305,000 (was $257,000 in May ‘13)
  • Palm Springs: $234,000 (was $199,000 in May ’13)
  • Rancho Mirage: $368,000 (was $201,000 in May ’13)

Palm Springs Area Foreclosure & Short-Sale Sales Plummet

Foreclosure and short sales accounted for just 9% of single-family home sales during May ’14; a 50% drop from May ’13 when distressed properties accounted for 18% of sales. Distressed condo sales also dropped 50% during May accounting for just 6% of May ’14 sales compared with 12% in May ’13.

Remember That Real Estate Is Local

Consider that the data I shared here is for entire cities. And while that’s pretty local information, we’ll work with you in comparing neighborhood to neighborhood in finding your best location and value. And before you know it you’ll be enjoying your new home in the desert sun!
The master bath pictured above is from a luxury home at Andalusia at Coral Mountain in La Quinta.

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