As the first decade of this century has ended, I have compiled data for single family home sales in Palm Springs.  The results are interesting.  The following chart shows the rise and fall of Palm Springs single family home prices.  A lot of conclusions can be drawn from this information.  For instance, the median sales price of a home is 2009 is approximately the same as the median price in 2002/2003.  The median price of a home in 2009 was approximately 22.5% greater than the median price of a single family Palm Springs home in 2000.

For more detailed information I have posted the Average, Median, and Number of single family homes sold in Palm Springs by the month for the entire decade.   For instance, if you purchased your home in January of 2005, the median for that month would have been $565,000.  In December of 2009, the median price was $319,915.

 This information is a valuable tool whether you are a buyer or seller.  If you are thinking about buying or selling in Palm Springs please give me a call 760.831.5996.  I know the market currently and historically and would like to put my knowledge to work for you.

At the nation’s largest mortgage servicers, short sales soared 165% to 74,513 in the first nine months of 2009.  Realtors are beginning to see more accepted short sales and less aversion from lenders who are beginning to understand it is better to sell an occupied house than an empty house which is susceptible to neglect and vandalism.  Also, lenders are realizing it is generally less expensive to do a short sale over a full blown foreclosure.  This is good news for real estate professionals who in the past have experienced difficulty in closing short sales.  Maybe the time has come where the lenders are realizing the advantages of negotiating short sales.  Now, let’s hope the process of a short sale can be streamlined and transactions can be concluded in a timely manner which benefits everyone involved in a short sale as opposed to a foreclosure.

Click here to read the entire article featured on the front page of the LA Times February 18, 2010.

Palm Springs Real Estate fact obtained from the Desert Area MLS: The highest median price recorded for a single family residence in Palm Springs was in June, 2006 at $611,500.  At the end of the decade, December, 2009 the median price was $319,915.

The median price is the price for which half of the homes sold for more and half sold for less.

Starting today, February 1, 2100, the FHA flip rule has been deleted for the next year.  The long time rule prevented investors from immediately applying for an FHA loan. This change has been made with the intention of moving investor houses quicker.  For the complete article visit latimes.com

The Basics: Extended Home Buyer Tax Credit 2009/2010

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 tofirst-time home buyers until April 30, 2010.

• Expands the credit to grant up to $6,500 credit to current homeowners purchasing a new or existing home between November 7,2009 and April 30, 2010.

Here is some basic information about how the Extended Home Buyer TaxCredit can help prospective home buyers become part of the Americandream. If you have specific questions or need additional information, pleasecontact a tax professional or the Internal Revenue Service at 800-829-1040.

Who Qualifies for the Extended Credit?• First-time home buyers who purchase homes between November7, 2009 and April 30, 2010.• Current home owners purchasing a home between November 7,2009 and April 30, 2010, who have used the home being sold orvacated as a principal residence for five consecutive years withinthe last eight.To qualify as a “first-time home buyer” the purchaser or his/her spousemay not have owned a residence during the three years prior to the purchase.

 Which Properties Are Eligible?The Extended Home Buyer Tax Credit may be applied to primaryresidences, including: single-family homes, condos, town homes, and co-ops.

How Much Is Available?The maximum allowable credit for first-time home buyers is $8,000.The maximum allowable credit for current homeowners is $6,500.

How is a Buyer’s Credit Amount Determined?Each home buyer’s tax credit is determined by two additional factors:1 - The price of the home.2 - The buyer’s income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective onNovember 7, 2009, single buyers with incomes up to $125,000 andmarried couples with incomes up to $225,000—may receive themaximum tax credit.These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits.

If the Buyer(s)’ Income Exceeds These Limits, Can He/SheStill Get a Credit?Yes, some buyers may still be eligible for the credit. The credit decreases for buyerswho earn between $125,000 and $145,000 for single buyers and between $225,000and $245,000 for home buyers filing jointly. The amount of the tax credit decreases ashis/her income approaches the maximum limit. Home buyers earning more than themaximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30,2010?Under the Extended Home Buyer Tax Credit, as long as a writtenbinding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?No. The buyer does not need to repay the tax credit, if he/she occupiesthe home for three years or more. However, if the property is soldduring this three-year period, the full amount credit will be recouped onthe sale.

Great architectural home (Albert Frey) in best neighborhood of Palm Springs priced to sell at $1,250,000.  Someone is going to get a deal.

Contact Gary at 760.831.5996

The Statewide median price of existing single family homes rose to $304,500 in November according to the California Association of Realtors as well as a 2.4% increase over the previous month and 5.8% higher that the same month a year earlier.

In Palm Springs the median price of a single family home was $319,000 in November according to the Desert Area Multiple Listing Service.  That represents an increase of 13% over the previous month but a decrease of 9% from November of 2008.  Of course the number of homes sold in Palm Springs is a smaller sample than California as a whole and prone to wider variation as one or two sales can greatly affect the median price.   Nonetheless, I would view this as a positive sign that the market in California as well as Palm Springs has rounded the corner and headed in the right direction.

  Look for my year end report shortly after the first of the year, detailing home sales in Palm Springs over the course of 2009 and some interesting information concerning the decade and Palm Springs home sales.

I found myself in a dentist chair a few days ago consulting with a periodontist who had been referred to me by my long time dentist.  As he was discussing his prognosis for me, I began to think about the faith I would be placing in this doctor’s hands.   Not only would the procedure involve anesthesia, surgery, and recover time but also a great deal of money.  Was I choosing the right professional and the right course of action? As I discussed my situation with my friends, they had a wide variety of suggestions for me from “just pull the tooth and forget it ”  to “you are making the right decision”.

I related my thoughts on this situation to meeting clients in my profession for the first time and how they might be feeling about their decision to work with me or another professional.  Of course, in real estate the commitment to a professional is not exactly like selecting a dentist.  Appointments are made with a dentist and paid for at the time of service.  Not so for the real estate professional.  Appointments are made and houses are shown, in some cases over a period of months or even years and no fees are collected.  I am sure during this process; friends and relatives are giving feedback concerning the search for real estate just as my friends did concerning my dentist.  They may have opinions about the Realtor, the city, the price point and the selection of a property once it is made. The client may move on to another Realtor, decide not to buy or move to another state to buy. Thus is the life of a Realtor.

When selecting a real estate professional, like selecting a dentist one is placing a lot of faith in the hands of the Realtor.  When buying there is the  search for the property, negotiating a price for the property, inspecting the property, obtaining financing for the property, and closing escrow on the property to mention a few of the  aspects involved in a real estate transaction.   When selling a property many of the same skills are also involved.   All this does take faith and trust in the professional as well it should.

I am asked time and time again what type of buyer or seller I prefer to represent.  Over my 28 years in real estate, the answer I give is simple.  I want to represent a seller or a buyer, no matter how larger or how small the transaction, who is as honest and as loyal to me as I am honest and am loyal to them.  This is the key to a great professional relationship whether with a dentist or a realtor.

If buying or selling real estate in Palm Springs is in your future, I would appreciate the opportunity to meet with you and discuss a professional relationship and of course, referrals are always welcomed.

Gary CarlsonDirect# 760.883.1453

Median price increases from October to November, 2009.

 Further, the median price-the price for which half the prices sold for more and half sold for less- increased from $284,904 ( 115 condos and sfr’s) to $311,760    ( 109 condos and sfr’s) from October to November, 2009 , a gain of 9% in the median sales price.

So, once again, does this indicate a shift in the Palm Springs housing market?  Dwindling inventories and median price increases seem to be telling the story at least for the last sixty days.

The California  median home price-the point at which half the house sold for more and half sold for less-was $257,000 in October up 2.4 percent from $251,000 in September 2009.  The median price was down 7.6 percent from $278,000 in October, 2008.

In Palm Springs the median home price in October was $284,904 unchanged from the  September median price of $285,587. The median price was down 8.5% from $336,020 in October, 2008.

In Palm Springs for October there was a total of 115 condos and single family homes reported sold by the Greater Palm Springs Multiple Listing Service down from 119 homes and condos sold in September, 2009 for a decrease of 3.25%. Comparing  October, 2008 to October 2009 there was an increase in sales of 9 percent from 107 units to 119.