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!
The Coachella Sports and Entertainment Stadium Authority plans to build The Shield at 1 Coyote Way, a $300 million, 12,000-seat mixed-use stadium in Thousand Palms.
David Miller, the founder and coach of the SoCal Coyotes developmental football team in the desert, launched the Coachella Sports and Entertainment Stadium Authority (CSESA) with the goal of creating this sprawling facility.
The proposed sports complex would include a hotel, medical facilities, a senior living village and retail and be located on 125 acres of land owned by the H.N. and Frances C. Berger Foundation in the area between The Classic Club golf course and Interstate 10.
It will be called The Shield at 1 Coyote Way, and its primary focus will be to offer a place to allow the desert to be a player in the $15.3 billion youth sports industry, hosting camps, conferences, tournaments and championship games, etc.
The land where The Shield will be built is owned by the Berger Foundation, and they’ve agreed to sell it to Richmond Honan Development and Acquisitions LLC, a firm based out of Alpharetta, Georgia.
The Berger Foundation supports organizations who promote health care, social services and education in an effort to help people help themselves, has been wanting to do something big with this plot of land for years but never found the right project until Miller and his group came around.
According to Doug Vance, vice president of Real Estate at the Berger Foundation, when they purchased the land in 2003 the original idea was to build a university on it, but that did not pan out.
“There has been many other potential investors that have come along over the years and nothing ever seemed to exactly fit,” Vance said. “But when Coach Miller brought The Shield concept to the Berger Foundation with all the charitable things he does for the children here in the Coachella Valley, we were very interested and then when we looked into Richmond Honan as a developer they also had the same goals and interests that we do to help the community.”
Using a large piece of Art for Staging can create a show stopping centerpiece for any room. It directs the eye and commands attention, it sets the tone and personality adding to the overall feeling of the space.
A FEW GUIDELINES
If you’re using art for staging, it should compliment the style of the home. Abstract pieces such as flowers and landscapes are safe while making a statement.
Repeat colors that are already in the room in the artwork. Even if you’re working with metals or neutral colors find a common color thread that you can repeat. Hang the art near furniture helping to move the eye around the room.
When deciding what wall to hang the artwork, always think about the first impression of the room and the angle photos will be shot from. Mirrors can be a good choice to reflect views and add depth to a room.
The size will depend on the size of the wall or piece of furniture the artwork will hang above – it should be proportionate. Over-sized art should be hung on the largest wall that’s the most visible when you enter the room.
Want to draw attention to the high ceilings? Choose two – three pieces and walk them up the wall drawing the eye up.
Multiple pieces hung in a grid can give the same impact as one large piece. Keep about 2 – 3 inches between frames.
Size matters, a rule of thumb is to have the art fill two-thirds to three quarters of the wall. For contemporary art, bigger is better to maximize the impact.
How high should you hang art? The center of the piece at eye level has always been the standard. Most art galleries hang their art up 58″ from the floor. But this rule doesn’t necessarily apply for all pieces in all rooms. For instance if the room will be used mostly for sitting, hang your art lower to keep it at sitting eye level. When hanging above a sofa or other piece of furniture, keep the bottom edge six – twelve inches above the furniture.
Art like any other accessory can be overused in a staged home. As with anything, when selling your home, less is more.
Staging Your Home To Sell; 10 Easy Tips
Want to know more about some well-known Designer tricks that can transform your home? The smallest things can make the biggest impact when staging your home to sell.
Here are 10 Easy Tips You Can Follow when Staging Your Home to Sell
- Paint smaller rooms in softer, lighter colors to help make the room feel larger. Staging can include new paint; it’s a great way to freshen the look and feel of your home.
- Add decorative mirrors to add instant light to your living space and reflect the view.
- Use what you already have. Instead of running to the store, take a look at what you’ve got that could be re-purposed. The essence of our staging focuses on what you have that can be used. Trays can be used in multiple settings, on the coffee table or bedside table – add candles or a stack of books and a pair of reading glasses. Plates can be hung to create wall art.
- Mix it up. Mix up patterns and textures, mix old with new, expensive with inexpensive.
- Slipcovers often get a bad wrap, but can be an inexpensive way to transform a room that’s showing the wear from the kids or pets.
- Wicker Baskets can be an elegant and economical way to add storage in any room.
- Add a Hanging Pot Rack in the Kitchen. The Kitchen should look well put together but also like it’s a working Kitchen, A pot rack is useful and can be elegant.
- Go Green, add plants to your living space. Add them to every room – small or large. Plants are an inexpensive way to accessorize adding color and texture.
- Paint or Wallpaper – Here’s a great way to add an instant pop of color or texture. Paint or wallpaper the back of your bookcases.
- Area Rugs soften hard flooring; they can add a splash of color, they add warmth and great texture.
Thinking about selling your home in Palm Desert, Indian Wells, Rancho Mirage, La Quinta, Palm Springs or Indio? Give us a ring, Find out how our strategic marketing with staging services will get your home sold quickly for top dollar.