Local News : Palm Springs California Real Estate

The Senate has passed a bill that will extend the current $8000 tax credit for home purchases through April, 2010 with a closing date of no later than June 30, 2010.  There is also a provision for homeowner’s who have lived in their homes for 5 of the last 8 years to receive a $6,500 tax credit if they sell and purchase a new home in this time period.    In addition, the legislation would raise income levels to $125,000 for single filers and $250,000 for joint filers.  This is especially good news for first time home buyers, but the provision for selling your home and purchasing another for a $6,500 seems ineffectual at best.  I would think it highly unlikely that homeowner’s who have little or no equity in their current homes will be motivated to sell and purchase another for a $6,500 tax credit.  It would seem to me that owner’s in this situation will be moving not due to any tax credit they may receive, therefore, the US Senate is adding an incentive that will not create any new buy and sell situations and in this instance giving away taxpayer dollars.

The Los Angeles Times reported more positive developments for the housing industry.  According to the National Association of Realtors pending sales of existing homes increased for the eighth straight month in September.  Also, September contained good news for the building industry. The Commerce Department reported that U.S. construction spending had its largest gain in a year.  Does all this add up to the bottom of the housing market?  It is certainly time to start wondering if we have reached or are very close to the bottom of the market and whether it is the right time to buy before housing inventories are further depleted?

The Senate agreed to extend the home-buyers tax credit while also offering a $6,500 tax credit to homeowner’s who have been in their homes at least five years.  The tax credits will be available to buyers who sign contracts by the end of April and close by the end of June.  This is good news for first time home buyer’s as the deadline has been extended to gain the $8000 tax credit by an additonal 5 months.  Also, indivduals who have been in their home for more than five years will be granted a $6,500 tax credit if they choose to buy a new home in the time frame set out by the US

Here comes the great California weather to Palm Springs, warm days and cool nights.  Certainly the seasonal weather has arrived and it is time to ask your self whether it is time to buy a home in Palm Springs.  As the temperature cools, the Palm Springs real estate market has heated up.  As reported in the Los Angeles Times on October 24, 2009, “Sales of existing homes rise 9.4%.  It was the fifth increase in the last six months, and sales activity is at the highest level since July 2007,”according to the National Association of Realtors.

As I reported on October 1, 2009, inventories of single family homes and condominiums decreased by over 30% from six months earlier.  The fact that inventories are reduced is evidenced when looking for properties for prospective buyers as it is slim pickings.   Today, October 28, 2009 inventories in Palm Springs have yet again taken a dramatic drop from 512 homes on October 1 to 379 homes on October 28, as condo inventories remained steady at about 440 units on the market.  The drop in the month of October, 2009 was 26% alone.   On October 28, 2009, The Los Angeles Times reported, “Home Prices continue to climb.  A national index rises 1% (home values) in its third consecutive month-to-month gain.”

Again, it seems as a housing recovery has begun.  In Palm Springs inventories are way down and prices are moderately on the increase and the Palm Springs season has just begun.  So, is it time to buy?  You bet, the job for the real estate professional is to find the perfect house with low inventory of homes.  Enjoy the Palm Springs perfect weather, whether or not you’re looking to buy the perfect t home in Palm Springs.

I stand ready to show you what Palm Springs has to offer as a first residence or a second home and I am always looking to list residential properties in Palm Springs.  It may be time to sell as inventories are way down and prices have moved up moderately.  Good properties are hard to find and are commanding good prices, so it may be time to become a seller.

According to the National Association of Realtors as of June there were 3.8 million properties for sale across the United States, compared with 4.5 million June of last year. That is close to a 20% drop in real estate inventory in just one year. In contrast, Palm Springs has experienced nearly a 30% drop in our local inventory within the past 5 months. Does this signal a time to buy? With current Tax incentives’ coming close to an end the choice needs to be made soon.

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The Palm Springs housing market has declined. Six months ago there were 750 single family homes on the market as well as 725 condominiums.

On October 1st; gathering statistics from our local multiple listing service, I found there are now only 512 single family homes and only 440 condominiums on the market for sale. That drop represents an approximate 30% drop in single family homes inventory, and a 40% drop in the condominium inventory.

Does this signal the bottom of the Palm Springs market? Does this mean the time to buy is now?

The answer to both questions in my opinion is yes. I have definitely taken notice to the few homes that have been, or rather not been coming on the market in Palm Springs.

I have also noticed the quality of the homes coming on the market. Prices seem to be stabilizing on homes of quality not part of  distressed situations, so i believe it wont be long before prices begin to steadily increase as more and more sellers take notice.

As the world turns each day it seems like the economy is taking more and more hits.  In the Coachella Valley real state market the hits keep coming.   I read many reports regarding the state of local real estate but examining the details that come from the Desert Area Multiple Listing Service is an eye opener.

For the last several days I have sifted through the daily market watch to see who owned the houses that are selling.  To my utter astonishment, over 80% of the closed sales in the Coachella Valley reported to the Multiple Listing Service are bank owned properties.  This percentage has held steady for the past four days.  In addition, the few remaining sales that are not bank owned are largely short sales which still involve distress properties and the banks.  To say that bank owned properties are fueling the entire Coachella Valley real estate market is not an exaggeration.

The median price for a sold house in the Coachella Valley on October 7, 2008 is $189,950.  The high was $800,000 and the low $45,000.  These will be interesting statistics to watch as the weeks and months unfold.

My web site has lots of information on Palm Springs bank owned properties.  There is a comprehensive list of all bank owned properties on my web site.  I update this information once each week. 

In the next few days I will be listing what I perceive as the best buys in Palm Springs in all price categories whether bank owned or not.  Properties that I select will have been personally visited by me.

I hope this information will be of value to you.  I will be happy to discuss Palm Springs real estate with you via e-mail (realtorgarycarlson@yahoo.com), telephone or text at 760.831.5996

Gary Carlson

Realtor

Prudential California Realty

As the market has changed David Emerson, a 25 year real estate veteran compared his profession to a doctors’ saying “You go from being like a doctor who delivers babies in a booming real estate market,” he said, “to being an oncologist just giving people bad news all day long”. 

I certainly find a lot of truth in this quotation.  As a twenty five year real estate professional, I have seen a once warm and fussy and full of joy profession become treacherous, difficult and changing everyday.  Success, Experience, it matters, now more than ever in the real estate world.  Whether buying or selling let’s talk about the health of your real estate.

I think for my entire life I have heard humans need eight glasses of water a day to remain healthy.  I wonder just how many people followed this sage advice.  I know I probably did not, but rather drink water when my body tells me to.  So after a life time of this believe the American Medical Association concluded last week that 8 glasses of water a day is not necessary and one should drink water when the body demands.

In today’s real estate market one hears all kinds of advice from relatives, neighbors, doctors, physiatrists, gardeners, and the guy who pumps gas.  Well, it is time to take action on your own and listen to real estate professionals.  There may never be a better time to buy than right now.  Everyone is wondering what is going to happen in the future instead of focusing on what is happening right now.  The fact is that prices have dropped in some areas about 20% from a year ago and inventories have forced this issue.  Listen to the market as you listen to your body when it needs water.  It is time to buy when inventories are high and prices are down.  The market has had plenty of water and it is time for real estate to catch on fire. Don’t get burned.

Please call me for an appointment to consult with you concerning your real estate needs, whether buying or selling in the Coachella valley. My personal cell number in 760.831.5996

And please remember to drink water when your body demands.  That is certainly good advice.