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 Springs Aerial Tram Road Challenge
October 27, 2018 starting at 7:00 a.m.
If you’re looking for a challenge, then this event is for you! The Palm Springs Aerial Tram Road Challenge 6K run / walk starts at 400 ft elevation and climbs to over 2,600 ft elevation. This is not your typical weekend 5k. This is the 32nd annual event with more than 1,500 participants from around the world come together each year to take the challenge.
Nestled at the base of the San Jacinto Mountains, Palm Springs is known for its crystal blue skies, year-round sunshine, palm tree lined streets and starry nights. Home to the Annual Palm Springs International Film Festival & Modernism Week, Palm Springs has fun & entertainment for all ages. Be a part of what makes Palm Springs the place to be, check out these FAB Homes for sale in Palm Springs
Halloween Chili Cook Off and Car Show at the Palm Springs Air Museum
October 27 from 11:00 – 2:00
Join the fun at the Palm Springs Air Museum’s 11th Annual Chili Cook-Off and Car Show. Volunteers from the Museum cook up their favorite recipes and you decide who’s is the best. It’s a goolish feast for the eyes and the tummy.
Palm Springs is known for its crystal blue skies, year-round sunshine, palm tree lined streets and starry nights. Home to the Annual Palm Springs International Film Festival & Modernism Week, Shopping, Fun and Entertainment for all ages. Be a part of the Palm Springs Lifestyle, check out these FAB homes in Palm Springs
SUMMER STAGING TIPS
Did you know that more than 50% of the desert home sales happen during the summer months? The desert summer real estate market is as hot as it is outside; knowing how to present your home for sale will be an important factor for you to ask and receive top dollar.
Top 6 Summer Staging Tips
Keep it cool as a cucumber. no one wants to walk into a hot house. All of a sudden, they’re thinking how do I get out of here instead of looking at your home. Now is not the time to skimp on energy bills.
Show that the grass is greener. High water costs and water conservation are hard on our summer desert landscape. However, keeping at least the front landscape looking fresh and lush will make your home stand out as the gem. The curb appeal will lure them in.
Set the Mood. set up a refreshing beverage station for your hot and tired home buyer’s and their agents. Place a vase with fresh flowers. Have a pitcher of Ice Tea or Lemonade with lots of ice and pretty glasses set out just before your showing.
Visual Power. Use fresh flowers in as many places througout your house as you can. Make sure your home looks fresh, cheery and refreshing as possible.
Making Scents. Aromatherapy can help make your home more alluring. Scents like Citrus, Eucalyptus or Rosemary say summer. They add a clean refreshing scent to your home.
In the Swing. There is an intimate relationship between music and marketing. Music can evoke an emotional response. The awkward sound of heels on a hard floor is hardly inspiring. Heighten the senses of your buyer with background music, it changes the ambiance and heightens the senses and mood of buyers touring a home. Music has a persuasive impact and can create an illusion of life inside your home for buyers increasing their emotional attachment. The music you play is important, pair the music style to the style of your home and the buyer’s you’re targeting.
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!
Palm Springs Modernism Week 2018 – It’s cool, iconic and modern. The February festival is an exciting 11-day celebration of midcentury modern design, architecture, art, fashion, and culture. Events include the Modernism Show & Sale, tours of iconic homes, architectural walking and double-decker bus tours, a world-class lecture & film series, tours of the historic Annenberg Estate at Sunnylands, a Palm Springs Walk of Stars dedication, classic cars, garden tours, a vintage travel trailer exhibition, and much more.
The mission of the Palm Springs Modernism Week 2018 is to celebrate and foster appreciation of midcentury architecture and design, as well as contemporary thinking in these fields, by encouraging education, preservation and sustainable modern living as represented in the greater Palm Springs area
Located in North Palm Springs is one of the city’s best-kept secrets in Little Tuscany set on .57 acre with Stunning Mountain Views. Built in 1939 and remodeled in 2017.
Check out some of the Palm Springs Modernism Week 2018 upcoming events!
Rat Pack Playground – Modernist Homes in Vista Las Palmas
February 15, 2018 | 9:30 am – 11:30 am
Stars and Star-chitects in Deepwell
February 15, 2018 | 9:30 am – 12:00 pm
Preview Party at the 18th Annual Modernism Show & Sale
February 16, 2018 | 6:00 pm – 9:00 pm
The Big Reveal Party at the West Elm House 2018: The Pool House
February 16, 2018 | 8:00 pm – 10:00 pm
Modernism Week Showcase Home – Moroccan Modern
February 17, 2018 | 9:00 am – 1:00 pm
Sagewood: A Donald Wexler tour
February 17, 2018 | 10:00 am – 3:00 pm
Alan Hess Presentation on Frank Lloyd Wright
February 18, 2018 | 9:00 am – 10:00 am
Ask an Interior Designer
February 18, 2018 | 10:00 am – 4:00 pm
Thunderbird North Home Tour – Architects William Cody and Donald Wexler
February 19, 2018 | 9:00 am – 4:00 pm
Wexler Residence – Palm Springs Modern Committee Iconic Home Tour
February 19, 2018 | 10:00 am – 2:00 pm
Boom Town: The Story of Uptown Palm Springs
February 23, 2018 | 9:30 am – 11:30 am
Steel & Glass 2018 Home Tour
February 24, 2018 | 10:00 am – 3:00 pm
Premier Double Decker Architectural Bus Tour
February 25, 2018 | 9:00 am – 3:30 pm
The Palm Springs Modernism Week 2018 is staged and set to amaze, don’t miss this popular event!