2019 Coachella Valley Annual Real Estate Report
and 2020 Projections
Coachella Valley Real Estate Market
Our market has become more year round with the number of sales during the summer months exceeding sales during “season” in the past two years running.
WHO WERE THE HOME BUYERS
Remote Owners represented 50% of our home buyers who were looking for a second home or investment property. Nearly 68% of those Remote Owners came from other California cities, followed in numbers by Washington state. Canadian Home Buyers are making an appearance again, with 14% of the Remote Owners coming from Canada.
Home Buyers from other metropolitan markets; especially our drive markets such as Los Angeles, Orange County and San Diego see great value here in Coachella Valley Real Estate. Baby Boomers are cashing out from other areas, and looking for a Lifestyle in their retirement; that’s largely what’s driving home sales in the Coachella Valley. Our sunny blue skies are pretty inviting, compared to snow and rain in other parts of the country.
WHAT WERE THE HOME BUYERS LOOKING FOR?
Bigger is not necessarily better in the case of our home buyer demographic. Aging Boomers want a simpler lifestyle and a home that requires less maintenance. Great Room Living, Each Bedroom with en-suite baths, Master Suite separate from the Guest Bedrooms, No Stairs and Light and Bright inside – with the current design trends showing Sleek White Gourmet Kitchens. Outdoor Living is a Must with Covered Outdoor Seating and Outdoor Kitchen / BBQ, most home buyers want a private pool and Views.
HOME BUYERS WANT TO BE WHERE THE ACTION IS
With more and more commercial development and signature events going on here in the desert, growth is on a fast pace and home buyers want to be where the action is. The Coachella Valley has an attractive lifestyle and home prices are a bargain comparatively speaking.
COACHELLA VALLEY REAL ESTATE BY THE NUMBERS
2019 Coachella Valley Real Estate had 9,787 sales. That number is down about 5% from the 10,295 units that sold in 2018. The reason is mostly due to a lack of inventory, (3.9 month supply of homes on the market), but price sensitivity is also a factor.
VALLEY HOUSING INVENTORY
January 1, 2020 there were 3,200 units for sale vs 3,398 units for sale January 1, 2019. The valley median price for detached homes was $425,000 up 9% in 2019. Median prices for attached homes was also up, 2% at $279,000.
The Luxury Home Market has seen in increase in both home value and sales. The California Desert Association of Realtors reports in the million dollar plus market, there was a 22% increase in sales in the 4th quarter of 2019.
|Coachella Valley Luxury Country Club Sales 2019 vs 2018|
|COUNTRY CLUB||2018 SALES||2018 AVERAGE SALE PRICE||2019
|Andalusia||32||$ 1,439,578||27||$ 1,581,415|
|BIGHORN||36||$ 3,892,153||31||$ 3,688,519|
|Eldorado CC||4||$ 1,713,750||16||$ 2,260,250|
|Indian Wells CC||45||$ 1,154,953||23||$ 1,044,192|
|Ironwood CC||22||$ 958,364||18||$ 1,422,800|
|Mission Hills CC||30||$ 914,666||44||$ 1,043,920|
|Mountain View||42||$ 881,012||25||$ 866,619|
|PGA West||121||$ 890,691||111||$ 964,449|
|Tamarisk CC||14||$ 1,090,643||12||$ 1,181,742|
|The Citrus Club||46||$ 871,464||48||$ 900,020|
|The Hideaway||28||$ 2,434,571||44||$ 2,467,545|
|The Madison||8||$ 6,275,000||6||$ 6,529,167|
|The Palms||9||$ 873,333||9||$ 821,555|
|The Reserve||11||$ 1,750,000||14||$ 2,176,607|
|The Quarry||2||$ 2,856,750||2||$ 2,492,500|
|Thunderbird CC||7||$ 1,640,000||5||$ 721,800|
|Toscana CC||37||$ 1,965,600||38||$ 2,171,903|
|Tradition GC||22||$ 2,409,431||22||$ 2,449,045|
|Vintage CC||11||$ 3,271,818||13||$ 3,081,154|
The National Real Estate Outlook
Home prices increased across the country in 2019 and experts predict the National Housing Market will remain strong through 2020 in the January Forbes article: “Five Housing Market Predictions for 2020” they cite crazy rents in the luxury apartment market is driving Millennials to buy instead of rent. More aging Baby Boomers are expected to sell their homes looking to transition into smaller homes with less maintenance. Some estimates say as much as 27% of the housing inventory in the country could hit the market between now and 2040, easing the housing shortage. The National Association of Home Builders report home builder confidence is at a 20 year high, paving the way for a boom in new home construction. That combined with low mortgage rates the outlook for 2020 is strong.
California Real Estate Outlook
The median home price in California was up about 4.1% in 2019, while the number of sales were down slightly. The California Association of Realtors forecast a similar uptick in prices through 2020. Housing affordability, (just 32% of households can afford a median priced home), and low inventory have been an ongoing challenge in California, mortgage interest rates at near historic lows are giving home buyers more buying power.
2020 Riverside County Date Fair & National Date Festival dives into the date, the hallmark of the Coachella Valley’s farming culture. Akin to what Mid-Century Modern 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 2020 Riverside County Date Fair & National Date Festival, taking place February 14-23 at the Riverside County Fairgrounds in Indio. This event offers fun for the whole family, including nightly entertainment from renowned music artists to monster trucks, demolition derby, and a recurring Arabian Nights musical. All the live entertainment is paired with carnival rides, a livestock fair, rodeo, food, and craft vendors.
The Riverside County Fair and National Date Festival started as a celebration for the end of the annual date harvest in the Coachella Valley. The event today remains true to those agricultural roots as well as an Arabian Nights theme developed decades ago and is still represented by nightly pageants. So in addition to fair favorites like animal exhibits and monster truck rallies, you’ll also be able to enjoy Camel and Ostrich Races and cooking demonstrations featuring dates. Musical entertainment and carnival rides add to the appeal of this diverse county fair.
Dates were an unknown commodity in the valley until 1903 when date palms were transplanted here from Algeria. By the early 1920’s, enough acreage was planted to make dates a major crop for the area. In fact, the date industry represented Riverside County at the 1915 World’s Fair in San Francisco. Date groves in the Coachella Valley were such a novelty that they became quite a tourist attraction.
With the popularity of the date gardens, the idea was planted for a date festival to be held in Indio City Park in 1921. The heavily publicized International Festival of Dates was promoted with an Arabian theme, a reference to the ancestral homeland of the date. A second festival was held the following year, but the interest for an annual fair waned. Instead, date agriculturalists promoted the crop at events such as the Southern California Fair in Riverside, the California State Fair and the Golden Gate International Exposition.
Today, the Riverside County Fair & National Date Festival remains an integral part of the greater Coachella Valley community and a major tourist attraction. It continues the legacy of decades-old desert traditions while celebrating the desert’s history and community, and of course, providing enjoyment fo the whole family.
For the full schedule of daily entertainment, as well as to purchase tickets, check out the 2020 Riverside County Date Fair & National Date Festival website.
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.
February 16 – 25, 2018 The 72nd annual Riverside County and National Date Festival 2018 opens for 10 amazing days of fun for all at the Riverside County Fair Grounds in Indio.
The 72nd annual Fair and Date Festival is about to light up the Desert and packed with fun for everyone including Camel and Ostrich Races, Carnival Rides, Arabian Nights Music Festival, Parade, Pageant and live concerts with star-studded headliners
Friday, February 16th at 7:30 p.m.
Saturday, February 17 at 7:30 p.m.
Los Rieleros del Norte
Sunday, February 18th at 7:30 p.m.
Lou Gramm, founding member of Foreigner, with Foghat
Saturday, February 24th at 7:00 p.m.
Super Fiesta Sunday featuring
Los Tequileros de Ramon Jimenez, Banda Pachuco, and Carmen Jara
Sunday, February 25th at 3:00 p.m.
After the Fair, stop by to see these exceptional homes
Want more information about one of these exceptional homes?
Give us a ring, (760) 218 – 5752
HOME BUYING – THE INSPECTION PROCESS
You’ve been looking at homes for what seems like forever, you finally found the right house and now it’s time to make an offer. What’s next? After you’ve come to an agreement between parties on price and terms, it’s time to peak behind the curtain, so to speak, to confirm the house is all you think it is. Are the systems in good working order, is it structurally sound? The California Residential Purchase Agreement contains provisions allowing various inspections of the property. The purpose of these inspections is to educate you as to the physical condition of the home you’re buying.
While these inspections do not provide guarantees of the condition of the property, they do provide valuable information to you as a Buyer. Your Purchase Contract may provide for a withdrawal from the contract if these reports are unsatisfactory to you, but inspections should not be considered an open door to renegotiate the purchase price.
THE HOME INSPECTION REPORT provides an overall assessment of the present condition of the property. The inspection covers items such as appliances, water heater, furnace, electrical service, plumbing, exterior siding, paint, flooring and other visible features of the property. This is a general inspection and will often call for additional inspections by specific trades, such as roof and furnace inspections. Who Pays? Typically, this inspection is paid for by the Buyer.
STRUCTURAL PEST CONTROL INSPECTION Often referred to as a “Termite Report” is conducted by a licensed inspector. In addition to actual termite damage, the Pest Report will indicate any type of wood destroying organisms that may present, including fungi (sometimes called “dry rot”), which generally results from excessive moisture.
Section I Conditions
Most Pest Reports classify conditions as Section I or Section II items. Section I conditions are those which are “active”, or currently causing damage to the property. Generally, Section I items need to be corrected before a lender will make a loan on a home.
Section II Conditions
Those which are not currently causing damage, but are likely to, if left unattended. A typical Section II item is a plumbing leak where moisture has not yet caused fungus decay.Who Pays? Your Purchase Contract will specify who is responsible for the cost of the inspection and who will make the corrections. This is a negotiable item.
PHYSICAL INSPECTION is usually done through a General Home Inspection. While Home Inspectors are not currently required to have a license in the State of CA, most are, or have been, General Contractors. The Inspection
and the resulting report provide an overall assessment of the present condition of the property. What is Inspected? The Home Inspection covers items such as exterior siding, paint, flooring, appliances, water heater, furnace, electrical service, plumbing, and other visible features of the property. This is a general inspection and will often call for additional inspections by specific trades, such as roof and furnace inspections.
If conditions warrant, the Home Inspector may recommend a Structural Engineer’s Report. Such a report would identify structural failures and detail recommended corrections. Who Pays? Typically, this inspection is paid for by the Buyer.
NATURAL HAZARD REPORT real estate seller and brokers are required to disclose if the property being sold lies within one or more state or locally mapped hazard areas. The law specifies that the six (6) required hazards be disclosed on a statutory form called the Natural Hazard Disclosure Statement (NHDS).
Required Risks Include:
A Special Flood Hazard Area
Very High Fire
Earthquake Fault Zone
A Seismic hazard
In Addition, the following supplemental hazards are commonly reported as well:
Radon Gas exposure
Airport influence area
Megan’s Law disclosures
GEOLOGICAL INSPECTION will educate you as to the soil conditions at the home you’re buying. This inspection is not typical in our area of the CA desert but could be done if there is a red flag that is causing concern. It would be performed by a Geotechnical Engineer and involves not only physically inspecting the property, but also researching past geological activity in the area. The primary purpose of a Geological Inspection is to determine the stability of the ground under and around the home. Who Pays? Typically the Buyer pays, but as with other inspections, this is negotiable according to the contract.
HOME WARRANTY a Home Protection Plans provide additional protection for certain systems and appliances in your new home and help both the Buyer and Seller. It protects the Seller from unforeseen failures such as a dishwasher that quits the day after closing and claims from the Buyer they didn’t disclose. They protect the Buyer from the same, the AC that breaks-down 6 months after move-in. For a service fee, the home warranty company will send a technician out to diagnose the problem and make necessary covered repairs. Who Pays for the Policy? This is a negotiated item; Buyers typically ask the Seller provide a coverage plan, they are not required to but it’s generally considered a good idea if they do.
There are many twists and turns throughout the home buying process that go beyond finding that perfect home. It takes the skill and knowledge of experienced professionals like Cathi and Ben Walter with Bennion Deville Homes to ensure you are covered and the details are handled properly. Home Buying in the Desert, see the best of Palm Desert, Indian Wells, Rancho Mirage, La Quinta, Palm Springs, Indio. For more information about the home buying process and how Cathi and Ben Walter can help, call (760) 218 – 5752 or email them today Cathi@DesertAreaHomeFinder.com
It’s a Fair and it’s a Festival featuring more than 7,000 exhibits and competitions this year at the Riverside County Fair National Date Festival in Indio. Opening ceremonies include Blessing of the Dates and a Salute to America. Watch Camel and Ostrich Races, Enjoy a variety of Food and Drinks, Thrilling Rides, Bright Lights and Live Music and new this year, the Robosaurus, the world’s largest Transformer.
One of the many great family events in the desert and close to Paradiso and Sonora Wells in Indio, two of the most popular gated communities in the desert featuring newer single family homes with up to 6 bedrooms, wandering pathways, park with Jungle Gym and Swings for the kids
FAIR Special Events INDIO
- Opening Ceremony & Blessing of the Dates (Feb 17th at 9:30am)
- Salute to America (Nightly at 6pm)
- Nightly Musical Pageant (Nightly at 6:15pm)
- Livestock Auction (Feb 25th at 10am)
- Hedrick’s Camel & Ostrich Races
Friday, February 17
- Opening Ceremony & Blessing of the Dates at 9:30am
- Hedrick’s Hedrick’s Camel & Ostrich Races at 3pm – Grandstand Arena
- Cooking with Dates at 1:30pm – Taj Mahal
- Academy of Musical Performance (AMP) at 5pm- Family Fun Stage
- Salute to America at 6pm – Pageant Stage
- Nightly Musical Pageant at 6:15pm – Pageant Stage
Saturday, February 18
- Hedrick’s Hedrick’s Camel & Ostrich Races at 11am – Grandstand Arena
- Amateur Date Recipe Contest at 2pm – Taj Mahal
- Humpz & Hornz Bull Riding at 5pm – Grandstand Arena
- Eli Young Band at 7:30pm – Fantasy Springs Concert Pavilion Indio
Sunday, February 19
- Hedrick’s Camel & Ostrich Races at 11am – Grandstand Arena Indio
- Cooking with Dates at 1:30pm – Taj Mahal
- Monster Trucks, Junior Outlaw Sprints & Mini Dwarfs Racing at 3:00pm & 5:00pm – Grandstand Arena
- Voz de Mando at 7:30pm – Fantasy Springs Concert Pavilion
Monday, February 20
- President’s Day Parade at 9am
- Magic Carpet Music Scholarship Winners Perform at 10:45am – Magic Carpet Stage
- Hedrick’s Camel & Ostrich Races at 11am – Grandstand Arena
- Cooking with Dates at 1:30pm – Taj Mahal
- WGAS Motorsports Monster Trucks & Freestyle Moto X at 3pm & 7:30pm – Grandstand Arena
Tuesday, February 21 thru Thursday, February 23
MID-WEEK ENTERTAINMENT AT THE MAGIC CARPET STAGE…
- The Mighty Del Tones – February 21st at 2pm & 4:30pm – Magic Carpet Stage Indio
- Smooth Sounds of Santana – February 22nd at 2pm & 4:30pm – Magic Carpet Stage
- Southbound & Company “Buddy Holly Review” – February 23rd at 2pm & 4:30pm – Magic Carpet Stage
- Hedrick’s Camel & Ostrich Races at 3:00pm – Grandstand Arena
Friday, February 24
- Cooking with Dates at 1:30pm – Taj Mahal
- Hedrick’s Camel & Ostrich Races at 3pm – Grandstand Arena
- Cheap Trick at 7:30pm – Fantasy Springs Concert Pavilion
Saturday, February 25
- Livestock Auction at 10:00am – Livestock Pavilion
- Hedrick’s Camel & Ostrich Races at 11am – Grandstand Arena
- Monster Trucks, Junior Outlaw Springs & Mini Dwarfs Racing at 3pm & 5pm – Grandstand Arena
- Dragster Test Tractor Pull Demo at 4:00pm – Grandstand Arena
- War at 7:30pm – Fantasy Springs Concert Pavilion
Sunday, February 26
- Hedrick’s Camel & Ostrich Races at 12pm – Grandstand Arena
- Cooking with Dates at 1:30pm – Taj Mahal
- SUPERFIESTA at 3pm – Fantasy Springs Concert Pavilion
- featuring Los Dareyes La Lierra, Sonora Santanera
- Robosaurus – Worlds Largest Transformer at 4pm – Grandstand Arena
- WGAS Motorsports, Demolition Derby at 6pm – Grandstand Arena
Daily Entertainment Catch great acts all over the Fair grounds!
- Lanky the Clown
- Jules physical comedy
- Hilby the German Juggle Boy
- Din Din Walk-around character
- Crafts & Hobbies Building: Quilters Demo (11am-6pm), Coachella Valley Model Railroaders Train Club Demo (11am-12pm, 3-4pm)
- Daily Petting Zoo – Livestock 10:00 am – 8:00 pm
- The Rawhide Express “Trackless Train” (10am – 12pm & 2pm – 5pm)
- Carnival Rides 11am – 10pm on Tuesday – Thursday and 10am – midnight on weekends.
Whether you’re an experienced homebuyer or novice, buying a Home can be complicated, with a lot of moving parts. Every home buyer wants to know their purchase was a good investment choice.
There are a few things you will want to think about as you start home shopping.
TAKE YOUR TIME – Make sure you take enough time to look at many homes in a variety of areas. Think about your lifestyle and how each home fits. Look at different times of the day so you understand the rhythm of the neighborhood. Is it quiet during the day but teaming with parked cars and kids playing in the street after work hours? Is it quiet after work hours but used as a main thoroughfare for traffic during the day?
FOCUS ON WHAT MATTERS – Location is one of the keys to a home’s current and future value. Being in a good school district may not be on the top of your list for qualifications, but has been proven to be an important item to many buyers. By focusing on the proven things buyers look for, you can be assured you will be able to sell your home more easily and the value will hold and likely increase.
THINK WITH YOUR HEAD – A home is a place to live, but is also a large expense and investment. Make sure you don’t overpay or buy a home with problems you can’t cope with later because you let your emotions lead the way.
USE YOUR IMAGINATION – Some homes can be a great bargain because homeowners can’t look past the ugly carpet or overgrown lawn. Picture the home for what it could be, ignoring things that are easy to fix such as worn wallpaper, or paint color. You might be able to negotiate a great deal since other buyers weren’t as imaginative as you, and then use the extra money to fix up the home to the showplace you knew it could be.
KNOW WHAT YOU CAN AFFORD – Stretching to get into a house is usually a bad idea; you may be tight on money and not able to pay for repairs or worse, have a turn in your financial situation and face losing your home. Likewise, using creative financing to get into a house you can’t afford can also be the fast track to problems when the mortgage payments rise.
GET PROFESSIONAL HELP – A professional real estate agent will provide you with access to all listings for homes for sale in your area. They also use their connections in the field to keep you up-to-date on new homes coming on the market so you don’t miss a bargain. In addition, as an expert within the market, they will be able to provide guidance on whether a house is a good deal, what to offer, and whether they see any potential problems you may not have noticed.
We are the experienced choice for home buying the desert area. Our skilled screening process will match you with your perfect lifestyle property, we will identify the bargains that fit your criteria and walk you through the home buying process. Call today for your buyer consultation.
Making an offer to buy a home and actually buying a home are generally two different actions, but home buyers sometimes confuse the two. In California the purchase offer, many times will not be the final negotiation due to contingencies in the contract.
Reality of Purchase Offers
When a home seller accepts an offer, the seller is optimistic the buyer will complete the transaction at the price agreed upon and believes there is nothing wrong with the condition of the home. The home buyer, on the other hand, is hoping the transaction will close because the home is in A-1 condition and perfect.
It’s rare that either of those expectations are in line with reality. No home is perfect and many conditions can change once a contract is accepted.
- Buyers often submit repair requests
- Low appraisals can threaten to blow the deal
- Mortgages can be denied in underwriting
Hesitating to Take the Next Step in Buying a Home?
If the home you’re thinking about buying is likely to sell quickly, and if you have a “contingency or subject to clause” which allows you to perform your due diligence and cancel if you find a red flag, you should immediately make a purchase offer. Don’t sleep on it or try to get every single question answered beforehand or you may very well lose the home. Somebody else could beat you to the draw.
If you like the home, odds are several other active home buyers will, too. You’re not the only smart cookie who can spot a great buy.
And no, losing the home doesn’t mean it was “supposed to be that way.” Consider instead that you were supposed to buy it, and you messed up.
Types of Homes That Quickly Sell
In seller’s markets, almost every home sells quickly. In buyer’s market’s, the Days on Market, (DOM), will be longer. There are many inherent characteristics and qualities that determine whether homes are likely to sell fast, but these are the top two combinations:
- Turnkey homes in high-demand neighborhoods, excellent condition and priced right.
- Cosmetic fixers in good locations and priced below comparable sales.
If the home you want to buy falls within those two categories, you should move quickly to make an offer, provided you know you have a contingency period in the contract to perform your due diligence.
Pros to Making Immediate Offers to Purchase
The obvious reason to make an offer right away, you can block another buyer from buying it. When the seller accepts an offer from you, the seller cannot accept another, except as a back-up offer, good only if your contract is canceled by you.
If your offer is first and sole, you can negotiate on price and terms. You can make a lower offer. If there are multiple offers, your negotiation power is minimized.
Even if other buyers are interested, they will generally move on to another property once the seller accepts an offer.
Cons to Making Immediate Offers to Purchase
If you’re unsure between two homes and go into contract on property A, property B might not be available if you should change your mind and cancel the first transaction.
Return of an earnest money deposit is not automatic. Both parties are required to sign cancellation instructions.
Buyers can incur costs that are not refundable such as appraisal, credit report and home inspection fees that are non-refundable. Generally, title policy / escrow and other closing costs are waived upon cancellation.
Given the alternative of losing the home you want, however, take advantage of lessens learned by other Buyers who have lost opportunities because they were hesitant to act with urgency — instead of learning this painful lesson yourself.
Cathi and Ben Walter bring the skills and experience to help you navigate through the home buying process; if you’re thinking about a home purchase in the desert, call Cathi & Ben today for more information (760) 218 – 5752