The Coachella Valley real estate season has been mixed so far; we’ve had what seemed to be a couple of false starts with an increase in sales at the start of the year, then sales slowed.
There is a convergence of factors at play in the desert real estate market. We’ve seen fewer of our Canadian friends this season due in part to the value of the Canadian Dollar vs the US Dollar and the decrease in the price of oil.
The Canadian Dollar is down to about 80 cents. While that’s a change from one year ago, it isn’t that different from the historic range of 2004 – 2005 & 2009. Many experts say the days of 2011 & 2012 when the Canadian Dollar was at par or above the US Dollar are likely behind us.
In addition to the impact of fewer Canadian Home Buyers, we also saw local home prices increase fairly rapidly in the past year; prices got ahead of the market and sales slowed. In the first 2 months of this year, sales are down about 13% overall for the valley and prices have softened, making now a great time for buyer’s to make their move.
Currently Buyer’s can enjoy a nice selection of properties to choose from, we have an increase in inventories and lower prices. Buyer’s can strike their best deals now, an imbalance in any market creates opportunity.