Palm Springs Modernism Week 2019 returns for another year to revel in the beautiful, simplistic Mid-Century Modern movement. Modernism Week 2019 is a 10-day celebration of all things Modern in the mecca of “MCM,” Palm Springs. This signature event happens every February, gathering tens-of-thousands of Modernism enthusiasts from around the world to celebrate the form in all its glory, from sleek architecture to iconic furniture and fashions. Over the week-plus, participants can check out a variety of home tours, the Modernism Show and Sale, lectures from prominent figures within Modernism, films on the subject, and more.
Palm Springs boasts one of the largest concentrations of Mid-Century Modern architecture in the world and is the perfect setting for Modernism Week each year. With the creative fingerprints of legendary names etched throughout the Valley, including Wexler, Neutra, Frey, and Schindler, Palm Springs has an embarrassment of riches when it comes to highly-coveted Mid-Century Modern homes and structures. Modernism Week 2019 embraces the form and celebrates its unique characteristics, and is a local event everyone should check out.
The Modernism Week Show House: The Christopher Kennedy Compound will showcase a refurbished midcentury home in the Indian Canyons neighborhood of Palm Springs, with 12 leading interior designers undertaking the redesign. Tours of the home will be offered daily.
On February 15, Modernism Week will host a special dedication ceremony on the Palm Springs Walk of Stars for acclaimed interior designer Arthur Elrod (1924-1974). Elrod’s former home will also be open for a home tour and evening cocktail party on Thursday, February 21.
One of Albert Frey’s most intact residential works, the Cree House in Cathedral City, has been meticulously preserved and restored to nearly its original 1955 condition. The home, never before seen by the public, will be available for daily tours during Modernism Week.
2019 Riverside County Fair & National Date Festival celebrates the date, the hallmark of the farming culture in Coachella Valley. Akin to what mid-century architecture means to the Greater Palm Springs Area’s real estate realm, the date is synonymous with the Coachella Valley. These delicious fruits are a product of the date palm, which comprises a big portion of the Southern California desert’s agricultural industry. Get a taste of the delectable date, and the Coachella Valley’s rich culture, at the 2019 Riverside County Fair and National Date Festival, taking place February 15-24 at the Riverside County Fairgrounds in Indio. This event offers fun for the whole family, including nightly entertainment from renowned music artists.
What’s special about this Date Festival event isn’t just the fact that it also is the Riverside County Fair, but the entertainment includes blessing of the dates, and award-winning Arabian Nights Musical Pageant. An entertaining show that mingles contemporary humor with classic folklore, magic and mystery are at the heart of “Aladdin and the Heart of Agrabah”. And the queen of the fair– she is Queen Sheherazade and she comes with a Court.
The Nightly Musical Pageant is set to return to the 72nd Annual Riverside County Fair & National Date Festival, right after the Salute to America at 6:00 p.m. The vocal talents, costumes and stage effects will amaze fair goers with this year’s spin of the 1,001 Arabian Nights extraordinary tale, Prince Khudadad in the Shadow of Destiny. The audience will be engaged the entire show as the cast takes fair goers back in time to the Far East.
You’ll want to come early to the pageant stage to be a part of the moving and inspirational Salute to America which will honor our country’s armed services immediately after the welcome message by the Fair Board at 6:00 p.m. nightly. Incorporating service men and women, as well as local school color guards, this musical tribute will leave you swelling with pride and thanks.
The Coachella Valley destination of Southern California known for dates, enjoys a huge attendance at the fair event. Beach and mountain dwellers grow weary of the the cold, and head for the desert to get a taste of sunshine and warm shirt sleeve weather during the finest month ever–February. Indio has over 100 days per year of 100+ degrees Fahrenheit temperatures but in February the average temperature is around 75 degrees.
Riverside County Fair and National Date Festival is held at Riverside County Fairgrounds, 82-503 Hwy 111, Indio, CA 92201
February 15-24, 2019 | President’s Day Parade February 18, 2019, 9 a.m.
Presented by the Palm Springs Cruisin’ Association, the Dr. George Car Show is in its 17th year and has grown to be the largest one day car show in California. With 100% of the proceeds benefiting the Desert Cancer Foundation, it included 1,000 vehicle entries and is held on the lush grounds of the Indian Wells Tennis Garden.
For over twenty years, the Desert Cancer Foundation has provided financial support to patients and their families without insurance. Each dollar donated has equals to approximately $7 worth of services.
In 2018, The Palm Springs Cruisin’ Association donated $77,000 to the non-profit Desert Cancer Foundation.
In addition to its size it is also the longest running car show in the Coachella Valley.
The Palm Springs Cruisin’ Association is a non-profit organization that includes over 400 members. For this event, 150 volunteers participate in facilitating the car show which includes numerous vendors, a raffle and silent auction. The event is always free and the cost of parking was $5. At the point of entry club members ask for donations from spectators.
The car show is open to all collector vehicles. In the first year there were 375 entries. Only a few years later the association had to create a cut-off at 1,000 entries after growing exponentially.
This all-volunteer project has raised over $845,000 for the Desert Cancer Foundation, which Dr. Sebastian George co-founded prior to his tragic death in 2002. PSCA Club members work year around, planning this amazing show. With the pristine setting of the Tennis Gardens, car owners line up to show their vehicles on the lush green grass. The goal for 2019 is to reach the $100,000 mark for the annual contribution. this contribution will provide approximately $1mm in care and support for cancer victims.
For more information on the 17th Annual Dr. George Charity Car Show, visit the Palm Springs Cruisin’ Association website.
The 2019 Dr. George Charity Car show will take place on February 9th with gates opening to the public from 9:00am to 3:00pm.
DESERT REAL ESTATE MARKET REPORT
2018 Year in Review
As we start 2019, it’s time to take look back at how the Desert Real Estate Market performed last year and look for developing trends.
In 2018, there were 5,836 single family home sales throughout the Coachella Valley. Those homes sold at an average of $610,300 and an average of $260. / Sq Ft. Homes that were priced correctly for the market, sold on average in 89 days. The highest sale price in 2018 was $12,000,000 for a home located in The Madison in La Quinta.
With those statistics, we compared 2018 sales to the previous year and found that while the number of sales were down slightly overall, (2%), Selling Prices were up 10% and the price / sq ft was up 8%. The time it took to sell was down 10% from the year prior. The highest priced home sale in 2017 was $8,700,000. for a home located in The Vintage Country Club in Indian Wells.
While prices are up, inventories remain low as compared to this time of season in years past. Historically when the inventory of homes for sale is low, prices tend to rise due to the pressures of supply and demand.
Interest rates also play an important role in how markets perform; rates are still low despite the fact that the Fed gave us 4 rate increases in 2018. As rates increase, buyers can afford less house for the same mortgage payment, which ultimately puts downward pressure on home prices.
But good news, rates pulled back a bit this week. Conforming loans, (up to $484,350) for a 30 year fixed rate is still just 4.47%.
The Coachella Valley has long been viewed as a destination for the soon to retire and already retired home buyers looking for an active lifestyle, but with the increase in mobile commuting, people can work from anywhere. We’re also seeing more young home buyers who are looking for a quality lifestyle, moving to the Desert full time. Easy Freeway and International Airport access makes that possible.
Combine the Lifestyle that only the Coachella Valley offers along with affordable home prices – the Valley is and will continue to be a destination for both full time residents, second home buyers and
We have a strong and steady real estate market here in the Coachella Valley.
If you would like more detailed information about your neighborhood specifically, drop me a line – we just finished our 2018 “Year in Review” Market Report, I’m happy to send you a copy.
Broker Associate with Bennion Deville Homes
The Real Estate Corner Desert Market Update
NUMBER OF SALES
Home sales are up Valley-wide. The total three-month sales are up 2.9%. On a city by city basis, six cities show higher sales, with three; Palm Desert, Desert Hot Springs and Palm Springs showing the largest increase in sales.
The three cities with the largest sales declines are Indio, Indian Wells and Cathedral City.
INVENTORY OF HOMES FOR SALE
While home sales are up, inventories are down. Typically our inventories dip to to their lowest point every year toward the end of September, but this year inventories are even lower.
Low inventory acts as both a positive and negative; it’s positive for sellers and future home sellers as it tends to move home prices higher. But, it’s also a negative in that low inventory puts the brakes on the number of sales. If interest rates continue to increase, that can put a damper on sales as the cost of borrowing money for a mortgage becomes more expensive.
MONTHS SUPPLY OF HOMES FOR SALE BY CITY
The month’s of supply ratio is down valley-wide compared to one year ago in every city. Most have less than 4 month supply except two; La Quinta which currently has a 4.5 month supply and Indian Wells with a 6 month supply of homes to sell.
MONTHS SUPPLY OF HOMES FOR SALE BY PRICE BRACKETS
When we look at the supply of homes by price category, we see the supply is lower across all price brackets compared to one year ago. The biggest change is homes priced above $800,000. Last year the higher price points were taking 7.5 months – 1 year to sell. Now, it’s taking on average 5.3 – 8 months
The tipping point when using this metric is 6 month’s. 6 months is considered a “Balanced Market”, not particularly favoring either Home Buyers or Home Sellers. Less than 6 months, the market is tipped in the Sellers favor, otherwise known as a “Sellers Market”. More than 6 month supply is viewed as a “Buyers Market”.
As home prices or the cost of buying a home, (rising interest rates), increase – sales will start to slow putting downward pressure on pricing. Markets are always in a state of flux, moving from one market to another and rarely stopping at “balanced” for long.
While there is typically a lag period between market shifts, the lag time is shorter as the number of sales are increasing. Home sellers quickly see an improving market and strive to maximize the price they can ask. When prices increase too fast or too far ahead of sales, potential home buyer’s become reluctant to make offers, fearing they could be buying at the peak.
DISCOUNT FROM ASKING PRICE
In 2018, when negotiating a sale price with buyers; home sellers are discounting their listed price an average of 2%. One year ago, sellers needed to discount an average 2.4% off their asking price to close a sale.
For example, this ratio means if a home is listed at $400,000 it’s selling at an average of 98% of their asking price, or $392,000. a discount of $8,000. This metric also shows a strong and improving real estate market here in the Desert.
When we look at the story each of these metrics are showing for the Desert Real Estate Market, we can see an improving but pretty balanced market. In addition, we can see that the market has had and continues to show sustained growth. Making now the right time to be a participant in the market.
The Desert Lifestyle is unlike any other, as we head into our season now is a great time see what the Desert has to offer. Check out these FAB Desert Homes!
Palm Desert Golf Cart Parade 2018
Sunday, October 28th from 12:00 – 3:00 p.m.
It’s time to kick off a new season in the Desert with the Palm Desert Golf Cart Parade! This years theme is “Celebrating our Super Heroes” Our community will showcase and celebrate all of our different types of Super Hero’s including our Police Officers, Fireman, Veterans, Teachers, Parents, the list is endless. Come be a part of the pageantry and fun as scores of whimsically decorated golf carts and bands march down El Paseo.
Palm Desert is a progressive city with an eye on the future – this picturesque desert community has a Dynamic Big City Vibe; with Exclusive Country Clubs, Fine Dining, Art Galleries, Live Theater, World Class Championship Golf and home to the valleys only zoo, The Living Desert, which combines an indigenous zoo with an authentic arboretum. Be a part of what makes Palm Desert the place to be, check out these FAB homes for sale in Palm Desert!
Summer Desert Market Report – Median home prices rose for the 8th straight month. Up 9.6% from last year. The hottest cities for sales by volume were Palm Desert (233), Palm Springs (213), La Quinta (156), Indio (131), Rancho Mirage (97). Each city and each community has its own story some communities have seen huge growth, while others are relatively flat. The cities that had the largest price increases, have seen the number of sales flatten, which tells us that prices were getting ahead of the market.
Inventories are down again putting upward pressure on pricing. Overall the desert has seen a decline in the time it’s taking to sell, nicely presented homes in a good location and priced well are selling quickly. Currently there is a 3 month supply of homes for sale in the desert, which puts us in a “Sellers Market” as we head into season.
The Fed has indicated there will likely be two more interest rate increases before the end of the year, which could start to weigh on the market and slow sales until the shock is absorbed.
Southern California and specifically, the Coachella Valley continues to be a sought after destination for a second home get a way.
As we head into our “Season”, we expect to see continued strong home sales and price appreciation valley-wide.
How’s your neighborhood doing? Send me an email, I’ve got the details!
What is a 1031 Exchange and can it work for you?
Thanks to IRC Section 1031, a properly structured 1031 exchange allows an investor to sell a property, to reinvest the proceeds in a new property, and to defer capital gain taxes.
1031 EXCHANGE FOR REAL ESTATE INVESTORS – THE BENEFITS
Whether an investor’s property is owned free and clear or encumbered, the benefits of a tax deferred exchange can be significant. The tax dollars saved by doing an exchange can be used to buy additional investment property.
An investor who exchanges is able to defer the capital gain tax and buy a replacement property worth more than the investor who simply sells and reinvests with after tax dollars.
1031 Exchange for real estate investors provides one of the best tax strategies for preserving the value of an investment portfolio. By using an exchange, the investor is able to defer the recognition of capital gain taxes that would otherwise be due with the sale of an investment property. To qualify as an exchange the relinquished and replacement properties must be qualified “like-kind” properties and the transaction must be structured as an exchange.
1031 EXCHANGE FOR REAL ESTATE INVESTORS – NON TAX BENEFITS
In addition to deferring the capital gain tax, tax deferred exchanges provide the investor with a wide range of non-tax opportunities that may suit an investor’s portfolio
- Reposition assets
- Change property types
- Increase leverage
- Increase depreciation deduction
- Reduce management obligations
- Provide for estate and retirement planning
- Allow for relocation
- Improve cash flow
- Achieve property consolidation or diversification
- Eliminate or create joint ownership
THE EXCHANGE PROCESS
Most exchanges, involve three parties: the investor, (exchanger), who is doing the exchange, the buyer who is buying the exchanger’s old (relinquished) property, and the seller who is selling the exchanger a new (replacement) property. To create the exchange of assets and to obtain the benefit of the “Safe Harbor” protections of the tax code, it is wise to employ an Exchange Accomodator, or Exchange Facilitator. This qualified intermediary becomes a fourth party principal in both simultaneous and delayed exchanges.
The steps for completing an exchange are relatively simple with qualified intermediary:
- The exchanger signs a contract to sell a relinquished property to the buyer.
- Exchanger enters into an exchange agreement with a Qualified Intermediary and assigns rights in the sale contract to the intermediary, including the right to receive the exchange funds.
- At the closing of the relinquished property, the exchange funds are wired to the intermediary and the intermediary instructs the settlement officer to transfer the deed directly from the exchanger to the buyer.
- The exchanger has a maximum of 180 days in the exchange period to acquire all replacement property.
- Unless the exchanger can acquire all replacement property within the first 45 days from the close of the relinquished property, the exchanger must identify possible replacement properties in writing to the intermediary within the 45 day identification period.
- The exchanger signs a contract to buy the replacement property with the seller and the exchanger assigns the exchanger’s rights in the purchase contract to the intermediary.
- At the closing of the replacement property, the intermediary wires the exchange funds to complete the exchange and the intermediary instructs the settlement officer to transfer the deed directly from the seller to the exchanger.
As a general rule of thumb, to avoid paying capital gain taxes in an exchange, the investor should always attempt to:
- Buy a property of equal or greater value, (net sales price).
- Reinvest all of the net equity in replacement property
- Obtain equal or greater debt on replacement property.
*Exceptions: A reduction in debt can be offset with additional cash from exchanger, but increasing debt cannot offset a reduction in exchange equity.
Do you own an investment property and thinking about selling it to buy another that might have more cash flow or less management headaches? We can help. Give me a call or send me an email, let’s talk about what’s possible for your situation.
Cathi and Ben Walter
(760) 218 – 5752
Ever wonder how much income you need to buy an average home in other areas of the country?
@HowMuch.net just published a map showing How much income you need to buy the average home in each state in the U.S.
They collected average home prices for every state from Zillow and then plugged that information into a mortgage calculator to figure out monthly payments. The interest rates used varied from 4 to 5% depending on the market, a 10% down payment, and total cost of housing not exceeding more than 30% of gross income. Using this rule as the benchmark, they calculated the minimum salary required to afford the average home in each state.
The Top Three Places Where You Need the Highest Salaries to Afford the Average Home 1. Hawaii: $153,520 for a house worth $610,000 2. Washington, DC: $138,440 for a house worth $549,000 3. California: $120,120 for a house worth $499,900 Here’s a quick snapshot of housing affordability across the United States.
Home much income do you need to buy the average home in each state; Check it out!
Home Design Trends for 2018 – Each year Fixr conducts a national survey of home industry influencers in the US; those who are building, designing, manufacturing and publishing content relevant to the field, revealing single family home design and construction trends.
Gen X’ers are the most likely group to buy a single family home with Millennials representing the second largest group in the 2018 Fixr Survey. There are many reports that show Millennials are driving the current market.
In 2018 more home buyers are looking for single story homes with more than 2,000 sq ft with an open floor plan and they want to live in urban areas.
Smart home features and automation are gaining traction at an incredible rate and is the number one choice for popular home design trends going forward.
Green and Energy Efficient Design is important to both Gen X and Millennials, but more so for the Millennials with Smart Thermostats, Home Automation Security, Lighting Control Systems, Smart Appliances.
Artificial intelligence and voice control systems will start showing up in homes in 2018.
The open floor plan has been the most popular layout since 2013 and will continue to grow going forward.
For current homeowners, when it comes to affordable upgrades, energy efficient upgrades and style enhancements were popular.
Dimmable lighting allows the homeowner to influence the mood of a room at all times of the day and night. Wireless hubs and concealed components are considered to be integral in nearly every home.
Adding energy efficient windows were another popular trend for homeowners.
Adding outdoor living spaces will be a popular addition in 2018 with more Millennials looking for indoor / outdoor living.
Home Buyers are beginning to expect both function and aesthetics, while function is the primary goal, aesthetics go a long way toward providing comfort and personal expression.
There is a delicate balancing act for home builders between homes that are aesthetically pleasing to the eye vs energy efficient homes that may feel cold or impersonal.
Most designers agree that form should always follow function and the most successful home design blends the two attributes creating a cohesive design, enhancing the homeowners experience in the space.
Get more information about what today’s home buyers are looking for before you put your home on the market. Give me a ring, I’m happy to share my knowledge and experience to help elevate your home above the competition (760) 218 – 5752.