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!
10 Staging Tips to Avoid at All Costs!
Home Staging Design can make or break a potential sale. Whether you’re using what you have or starting from scratch, there are some common design mistakes you’ll want to avoid. Here are a few tips to help you make your home look great for the marketing photos and make your potential buyers say WOW!
- Wall Hugger – It may seem like the logical and maybe even the only way to arrange furniture in the room, (especially if you’re working in a small room), but the opposite is actually true, you can harness the flow of a room by centering your pieces, pull them closer to each other instead of crowding your furniture against a wall. You will be amazed how the room takes on a different feel.
- Collection Spread – we’ve heard it before – when selling your home, declutter, and yes that is true. BUT, the truth is we all collect; whether it’s frogs, figurines or forks from the 4th Century AD, and you likely want to have them on display. There is a right way and wrong way to display your collections. First, if you have a lot of items in your collection, trim it down to just a few of your favorites and pack the rest, (you are moving right?). Next, instead of spreading the pieces throughout the room or worse the house, bring them together – the key is small groupings. Arrangements look deliberate and let your pieces speak for themselves. Well laid out arrangements can enhance the staging of your home if you do it right, and let you enjoy your favorite collections while avoiding that cluttered look.
- The Fickle Eye – you’ve lived in your home for years, over those years you’ve probably bought or inherited furniture and incorporated it into your home. Maybe it doesn’t quite match or it’s a little too big for the room or worse, you didn’t have room but still used it since it only partially blocks the walkway. Now, years later you don’t notice it any more, you walk around it every day without a thought. Our eyes can be fickle, they have a way of tricking us. Now that you’re selling your home, it’s time to put on your “Buyer Eyes” and take a good hard look around your house. Are there extra or oversized pieces of furniture that force someone to alter the natural path as they walk through the house? The old saying, “less is more” is absolutely true when staging your home to sell. Don’t set up an obstacle course path with furniture and don’t cram the room full of small décor objects. Make the decisions now whether to store, sell, donate or pitch.
- Dark in Small – Yes dark furniture can make a room feel warm, but they also make a small room feel smaller. If you have a small living room, opt for a lighter color palette.
- Rug Rules – Area rugs are the best way to anchor a room or a setting and they can tie a room together. But used incorrectly, it can also leave your space looking disjointed and cluttered. This is especially true in the living room, your rug should ground all of the seating elements around it. Make sure when looking for the perfect rug, you buy one that is big enough to achieve this affect. If possible, have all legs on the rug with a little rug showing behind the pieces of furniture, creating a frame around the setting. If your living room furniture setting is 6’ x 8’ you should be looking at an 8’ x 10’ rug. Plopping a 5 x 7 in the middle will make the room feel disconnected. Not sure? Get my Rules of the Rug ebook to help bring your rooms together with area rugs.
- Scale – Even designers can get it wrong sometimes; scale is one of the most important, (and sometimes the most difficult) elements of a well put together room. If you have a massive 10’ sectional in the room and put a small 5’ x 7’ area rug in the center or use a small coffee table, it just feels wrong. Maybe you have a large Dining Room space and put a small table in the room, or vice versa you’ve got a small breakfast nook and put a large heavy wood table in the space. Scale is important, think about it when you’re placing furniture or accessorizing a room.
- Balance – Without balance in a room, it can make you feel uncomfortable and even anxious. Balance is as much about emotion as it is about good design and balance gives us a feeling of stability and wellness. Creating a harmonious space depends on a few things; the furniture and the décor placement. Color and texture and the scale of the furnishings and décor. Think about a seesaw, if one side of the room is heavy and weighed down, the room will feel off balance. Example, if one wall has a tall wall unit and wall décor, make sure you balance that wall with something bold on the opposite side of the room. If you have a heavy sofa on one side, balance it with a pair of chairs opposite the sofa or other foundational piece of furniture.
- Matchy – A sure sign of an amateur decorator is where everything including the art matches perfectly. It’s not about perfection, it’s about ambiance. Example, balance a bold color with a large pattern that blends but doesn’t match exactly. Or balance a bright warm color with a textured cool color. Or choose colors that are the same hue but varies in intensity. Homes look professional and well put together when new elements are mixed with old; smooth is contrasted with rough, polished is contrasted with nubby.
- Boring – If you have a boring “beige” room, pick a great color and think about threading a needle, you’ll want to run that thread throughout the room and the house in a variety of different ways with pieces that pick up on that color or color palette.
- Level – Rooms with furniture all the same height are boring. Create interest with changes in elevations through the room. Put tall pieces next to short pieces. If you have a low back sofa, add something like a tall armoire or bookshelf. The reverse is also true with small décor, use the 3:1 ratio. Example, if you have 3 vases of varying heights grouped together, balance them with a single larger décor object on the opposite side of the shelf or mantel. It will make an eye-catching design statement.
These are called common mistakes for a reason and it’s easy to feel overwhelmed. You may not know where to start or the most important detail to focus on. If you would like more information about staging your desert home to sell, give us a call, we’re here to help.
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.
Add a Hammock!
42 Home Staging Tips to Get Your Home Sold
When it comes to staging your home to sell, there are many subtle ways you can tell your potential home buyer, “This is the right home for you!”, and they don’t necessarily have to be expensive.
Easy Tips for Staging Your Home to Sell
- Swap dim lights for high wattage light bulbs.
- Keep closets, drawers and cabinets as empty as possible to maximize the appearance of space.
- Have a dark corner or hallway? Brighten it with a decorative mirror.
- Make sure every switch plate and outlet cover matches and looks brand new.
- Create a luxury spa look in the Bathrooms with elegant soap dispensers, fluffy white towels, decorative baskets, candles, plants, a white shower curtain an new bath mat.
- Let buyers entertain the idea of….. entertaining, use chic place settings around the table, and a few wine glasses and decanter on the buffet. Strike a balance between overly formal and too casual with an attractive runner and a few fun, decorative elements — think small floral vases or short candle holders.
- Go gender neutral in the Master Bedroom, ditch the dainty floral pillow shams or Sports Memorabilia. The Master Bedroom should appeal to both sexes, create a sense of calm and relaxation.
- When placing anything from accent pillows and table lamps, go for symmetry, which is pleasing to the eye.
- Whatever amount of furniture you have in your living room, remove a few pieces to make the room feel more spacious.
- Help buyers imagine their life in your home. Add a hammock to the backyard to show how fun the lifestyle is in this house. Add a bunch of pink flamingos floats in the pool with beach towels and a lemonade station on the patio table near by.
- Let a slideshow of beautiful images play on your television like a screensaver.
- Arrange furniture in conversational groups to imply this is a space for people to come together.
Want more great tips on the best way to stage your home to sell for top dollar? Get our free guide with all 42 tips to staging your home to sell, send me an email and I’ll send it right over!
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.
Home Staging Trends for 2018
Staging can run from full to partial
Home staging trends for 2018 have gone mainstream and is now widely used to make a home more attractive to potential buyers.
Most real estate professionals agree; staging can increase the sale price of a home. But even it doesn’t increase the price, it reduces the amount of time the home sits on the market which is music to any home sellers ears.
Staging can range from Full to Partial
Small efforts like de-cluttering and partial staging can go a long way for homeowners who are still living in their homes while on the market. The challenge is to incorporate the homeowners existing furniture, blending with a few new pieces and keep with the current style and trend for the area.
A Personal Touch
In the past, keeping things neutral was the way stagers appealed to the widest range of home buyers, now the trend is to incorporate more design style and color in the home to add a wow factor. Today’s buyer wants to see personality and what their lifestyle would look and feel like if they lived there. Personal details create an aspirational image and can help reach buyers on an emotional level.
After a few years of all things gray, people are embracing beige and creamy white again with pops of color or an upscale design element to appeal to the design savvy home buyer. Two color trends showing up in 2018 design is dark Teal and Millenial Pink. If you’re in a first time home buyer market, these are two colors that will appeal to this demographic.
Adding pops of color using large colorful artwork and accessories is a good way to create a wow factor.
Hard surface flooring continues to be the trend. Stone, wood, bamboo, and wood look tile are popular trends that will continue.
Quartz is the current trend for high-end and even not so high-end homes for 2018. Granite has become the minimum standard for home buyers in all price categories.
Yes, gold tones are back. Now you’re seeing a lot more shiny metallic’s to add bling to an otherwise neutral palette.
Not all homes need a dramatic make-over, but most will benefit from at least a thorough cleaning, de-cluttering and culling.
For more information about staging your home to sell, we have an easy guide to help. Email Cathi today for your free copy of “It’s Showtime!”
It seems everyone is talking about staging, and everyone has an idea what it means. Everyone also agrees staging, behind pricing, is the single most important thing you can do to get your home sold.
Even after all the talk about how important it is; as a working agent showing property to buyer’s just about everyday, I still walk into homes that show poorly with clutter, not super clean, undefined spaces, furniture impeding pathways, dark rooms and my all time favorite, toilet seats up!
We even see online marketing photos this way, which is a real disservice to the property.
Staging isn’t difficult and your home doesn’t have to be a million dollar estate to outshine the competition.
Here are Few Simple Tips for Staging Your Home to Sell
Today’s home buyer’s are looking for Comfortable and New. If your home is older or looking tired, enhance it with modern furniture, art and accessories.
Details matter, small things like decorative objects can pull a room together like an area rug, deco pillows, throws, coffee table books, a silk tree can bring it to a new level.
Make ordinary, extraordinary.
Any space can be transformed into an amazing space with proper furnishings, art and accessories.
Edit, Edit, Edit. When it comes to furniture, less can be more.
Bright always rules, the easiest and most cost effective way to make a space look new is to throw on a fresh coat of paint. Stick to white or neutral colors and the same goes for lighting – bright and white toned lighting always works best.
Define spaces. Sometimes the hardest room for a Buyer to get their head around is a Great Room with large open spaces. Create transition spaces such as a conversation / sitting area with a couple of comfortable chairs and a table with lighting.
Rather than leaving a spare room empty, add a bed and night stands with lamps to help define the room.
Declutter. the eyes always go to the clutter first and it creates a sense of uneasiness. This is the simplest and least expensive way to make your home feel comfortable to a buyer. Start packing now. Sell, Donate, Store off-site anything that you don’t use regularly. Clear out and organize a cluttered garage, cabinets or closets, clear counter tops.
Buyers can’t help but think there isn’t enough space for their stuff
Hotel Ready is what today’s home buyer is looking for. Super clean, well maintained and move in ready.
If you’re thinking about selling your Desert home and not sure where to start, give us a call. We’re happy to help Cathi and Ben Walter (760) 218 – 5752
Staging your home to sell in 2018 – Home Staging has become the industry standard. Today, Home Buyers are looking for “Hotel Ready”. We have ample evidence proving that staged homes are on the market less time and will sell at a higher price than a home that has not been staged. A properly staged home also helps your potential buyer visualize the home as their own.
Here are 5 Simple Tips for Staging Your Home to Sell
1.) Stellar photography is essential. However, even amazing photography can only go so far without excellent staging.
2.) Light it Up – Lighting is everything and a great low-cost solution that will reap rewards for you. Now is not the time for energy efficient light bulbs, put high wattage bulbs in your lamps and overhead lights and turn them on for showings.
3.) Float your furniture – by pulling your furniture away from the wall, and floating it in the room you actually make the room look larger and help the buyer navigate the space. Use the homes traffic pattern to help guide you. Furniture should never be a distraction but enhance the flow of the room and the house.
4.) Fresh Flowers are a Universal Crowd Pleaser – They add vibrancy, beauty, and aroma to any room. Bouquets can be used as centerpieces in the kitchen or dining table, and smaller arrangements can be placed on side tables. Even a few small stems in a mason jar can offer a welcoming touch.
5.) Sell the lifestyle – You aren’t selling a home, you are selling the lifestyle. It’s all about the feeling a potential buyer gets when they walk through the door. You want them to feel at home by showing them what the life in the home looks like.
That means creating moments they can connect to — without it feeling contrived. A cozy reading nook in a living room or a collection of glass jars on a tray in the master bath creates a sense of both luxury and comfort.
5.) Use elegant white linens – Create a spa-like atmosphere in the Master with White Bed Linens. A clean, white, lofty cotton duvet cover and white pillows add a pleasant hotel look. In the bathroom, thick white towels and shower curtains can transform a frumpy bathroom to a luxury spa look.
Staging is about creating an online photo presentation that brings buyers offline and through the front door. Today, the “drive-by” is first done online and the way your home is presented online is a key element in the marketing of your home.
Yes, it does take more than 5 quick tips to create the perfect staged home, but it’s a great start to help you reach your goals.
If you would like more information about how professional marketing and staging will get your home sold faster for more, give us a call, we’re here to help.
(760) 218 – 5752
New Design style, color, and patterns are a great way to keep your home looking fresh and current and also adds appeal to potential home buyers when you’re selling your home. When staging your home to sell, here are a couple of staging tips incorporating new design trends.
Color Thread – A new color can feel like it belongs if you repeat the color in different ways throughout a room and carry it through the house, like a thread of color weaving its way through each room in small but impactful ways.
Example, start with a bold area rug in the Great Room that introduces your new color palette. Add throw pillows, a pot with a live plant, a few accessories and maybe a piece of art that also have your new colors.
As you go through the house, find at least 3 areas in each room to bring your new colors in, subtle ways. It could be as simple as a few books on a shelf with your colors, a throw across the bed. Towels in the bathroom with bath soaps. Have a recipe book on the Kitchen counter open to a delicious looking recipe with your colors, a bowl of all the same fruit in your colors.
Painting or wallpapering a feature wall in the Great Room, or Master Bedroom with an element of your new color palette can add a wow factor to any room.
Match your decor to your home’s style and price range. It goes back to knowing who your buyer is, and creating the right lifestyle. For example, you wouldn’t want to use fussy traditional furniture in a desert contemporary home. If your home is high-end, then your accessories and furniture should also look high-end.
2018 Home Design Trends –
What to Ditch and What to Look for
OUT – Chevron Patterns and Gray
Time to ditch the Chevron pattern that we’ve seen everywhere from wallpaper to lampshades. Muted gray and white is on the way out, making way for color.
IN – Color
Warm rich color is making its way onto walls, moldings, and furniture in a big way. Peacock Blues and Greens, Burnt Orange, and even pops of “Gen Z Yellow”
OUT – White Kitchens and Large Range Hoods
All white Kitchens are still popular, however, black, two tone cabinets, and wood tone cabinets are the trend for 2018 with Quartz counters.
IN – Warm Woods and Integrated Range Hoods
OUT – White on White Everything
Monochromatic white on white interiors are giving way to more realistic lifestyles that include kids and dogs. Look for rich warm colors to show up in 2018.
IN – Warm Color
OUT – Farmhouse Style
The Farmhouse look has been in style for about 4 years. 2018 Style trends are moving toward minimal design.
IN – Warm and Minimal