Palm Springs & Coachella Valley Real Estate Newsletter September 2020
Hello from the Coachella Valley!
The last month has brought record highs and lows. Record high temperatures and humidity, record low number of homes for sale and mortgage rates here in the Valley. Businesses are beginning to adapt to their new normal. Salons have just reopened, and restaurants are embracing their take-out and patio dining only, misters a must. They have even opened and extended the patios in Downtown Palm Springs to ensure enough space for everyone. We are preparing for a busy Valley full of travelers and interested home buyers in the final quarter of 2020 as people's need have adjusted to the new normal. Looking forward to seeing you in the Desert soon!
Whether you are buying, selling, or just looking, we now offer personalized home video tours!
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Below are a couple great articles from the Desert Sun and Investopedia.com that discusses the real estate needs of the Coachella Valley and some of the corresponding prices. They also summarize and cover ways to avoid common mistakes when considering selling your home.
Prices rising as desert homes are 'scooped up.' Here's where demand is highest
Melissa Daniels Palm Springs Desert Sun
The coronavirus pandemic and associated economic tumult haven't stopped people from buying homes in the Coachella Valley, with single-family home prices rising compared to this time last year as more people relocate to the desert.
Real estate experts say some buyers are moving here from larger cities like Los Angeles as they transition to working from home and are seeking a less dense, more affordable place to live.
The median price for a single-family home in the Coachella Valley was $459,000 in June, up 6.7% from the prior year, according to a June 2020 report from the California Desert Association of Realtors and the Palm Springs Regional Association of Realtors.
Robin DuFault, president of CDAR, said the price spikes in single-family homes is partly linked to the area's extremely low inventory, meaning there aren't many houses going on the market. On July 1, the area had 2,340 houses for sale, which is a 22% drop from the year before. The corresponding prices in the region have been a surprise for some, DuFault said.
"People were coming in and trying to low ball, and meanwhile, there were multiple offers coming in," DuFault said. "We're seeing some (offers) come in above-asking price."
Prices went up in all valley cities but Rancho Mirage and Indian Wells compared to June 2019. Prices were up the sharpest in Palm Desert, where the June 2019 median home price was $314,500 and is now $470,000.
But prices for attached homes — condominiums, for example — have dropped across all valley cities. The valley’s median attached price in June was $275,500, a 6% decrease from last year. Prices dropped the most in Rancho Mirage, where attached homes in June 2019 sold for a median price of $370,000, compared to $289,000 in June 2020, a nearly 22% drop.
The drop in attached home prices and sales also could be due to first-time homebuyers putting off purchase due to unemployment or job uncertainties. Here are the current median prices in valley cities as of June 2020 for single-family residential homes and in attached homes:
Palm Springs: $706,000 SFR / $248,000 attached
Cathedral City: $378,750 SFR / $176, 250 attached
Rancho Mirage: $620,000 SFR / $289,000 attached
Palm Desert: $470,000 SFR / $305,000 attached
La Quinta: $603,000 SFR / $327,625 attached
Indian Wells: $942,000 SFR / $399,000 attached
Indio: $335,000 SFR / $197,000 attached
Coachella: $292,500 SFR / N/A attached
Desert Hot Springs: $250,000 SFR /N/A attached
Demand for lower-priced homes
DuFault said the area is seeing a surge of demand with people wanting to relocate here, as they begin to transition to work remotely.
"We're getting a lot of relocations from the more populated area, the very dense areas. LA, Orange County, San Diego, even the San Francisco Bay," DuFault said. "Properties are being scooped up."
Enrique Braunschweiger, president of First West Financial Corporation in La Quinta, said he's been surprised by how hot the real estate market has been during the pandemic, given the widespread unemployment and the troubled economy.
He said the most demand is for homes under $400,000. Homes in places like La Quinta Cove, Palm Desert Country Club and Cathedral City may get six or seven offers after being listed for just a few days.
"That is a very, very hot commodity," he said.
Avoid These Mistakes When Selling Your Home
AMY FONTINELLE
Selling your home can be surprisingly time-consuming and emotionally challenging especially if you've never done it before. At times, it may feel like an invasion of privacy because strangers will come into your home and poke around your closets and cabinets. They will criticize a place that has probably become more than just four walls and a roof to you, and, to top it all off, they will offer you less money than you think your home is worth.
Click Here to Find Out What Your Home Could Be Worth!
With no experience and a complex, emotional transaction on your hands, it's easy for first-time home sellers to make lots of mistakes. But with a little know-how, you can avoid many of these pitfalls altogether. Read on to find out how you can get the highest possible price for your home within a reasonable timeframe—without losing your mind.
KEY TAKEAWAYS
Keep your emotions in check and stay focused on the business aspect of selling your home.
Hiring an agent may cost more in commission, but it can take a lot of the guesswork out of selling.
If you decide to sell on your own, set a reasonable sale price and keep the time of year in mind.
Prepare for the sale, don't skimp on the visuals in your listing, and disclose any issues with the property.
Market Resources
Click Here for the Regional Association of Realtors Market Report for August 2020
An interesting thing has been occurring with our market in the Palm Springs area; Low inventory is driving a seller's market and historically low interest rates are motivating buyers as well.
If you or anyone you know is interested in selling their home, Contact Us for a consultation. We will get you set up for success through our multi-level virtual and social media marketing package!
760.898.2643 - Mo Duman
760.898.2617 - Ben Duman
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