Welcome to the Coachella Valley! Home to famous cities such as Palm Springs, Indian Wells, La Quinta & Indio. Whether you're thinking about investing here, already have, or are a Full-Time Resident - this post is for you! We want you to know and understand what's happening here. Hopfully you find it helpful! Please let us know if you have any questions or would like further information, we would be more then happy to assist!
A spin-off from our good friend Mirela Monte and her Fabulous blog titled: Snapshot of the Real Estate Market we thought it would be easiest to respond via blog post - mostly because our answer was so lengthy and detailed, but also because the information is GREAT for all our readers!
Mirela brilliantly asked key questions which have all been addressed by not only us, but other Realtors® throughout our Nation. We encourage you to check out her Snapshot, as well as the comments left by others.
- How many properties do we have listed for sale in our Multiple Listing Service (MLS)?
- How does that figure compare with last years & the year before?
- What is the Sales activity per month on single family homes, condos, multi-family & commercial?
- What is the absorption rate for all the above?
- How does that compare with last year and the year before?
- How do January's sales figures compare with January of last year?
- How does that compare with November and December of last year?
- What is the best selling product in our market? What is the worst selling product? Why?
- How much of our market is foreclosure related? How many foreclosures have occurred in our market since January?
- What are our observations on local financing?
- What are our observations on local appraisals?
- What is the best advice we would give a Buyer in our market?
- What is the best advice we would give a Seller in our market?
1. How many properties do you have for sale in your MLS?
We based our search on Single Family Res Detch & Attch from 01/01 - 02/19 for 2008 & 2009:
- 2009 = 2003 Active
- 2008 = 109 Active
2. How does that figure compare with last year's and the year before?
Our inventory has doubled, tripled, quadrupled etc. YTD
3. What is the sales activity per month on single family homes, condos, multi-family, lands and commercial?
Single Family Res Detch/Attch:
- January 2009 = 507
- January 2008 = 520
- January 2007 = 650
- January 2006 = 798
- January 2005 = 929
Condominiums Detch/Attch:
- January 2009 = 60
- January 2008 = 165
- January 2007 = 175
- January 2006 = 267
- January 2005 = 412
Lots and Land:
- January 2009 = 8
- January 2008 = 56
- January 2007 = 116
- January 2006 = 208
- January 2005 = 230
Commercial:
- January 2009 = 2
- January 2008 = 4
- January 2007 = 5
- January 2006 = 6
- January 2005 = 9
4. What is the absorption rate for all the above?
17.1 weeks is our Absorption Rate for 2009. Here's how we got it:
# of listings on market = 2003
# sold last month = 507
# sold (507) X 12 (months) = 6,084
6,084 (divided by) 52 (weeks) = 117 units per week
2003 (total Actives) divided by 117 = 17.1 weeks is our Absorption Rate for 2009
~*~*~*~*~*~*~*~*~*~*~*
# of listings on market = 109
# sold last month = 362
# sold (362) X 12 (months) = 4,344
4,344 (divided by) 52 (weeks) = 83.5 units per week
109 (total Actives) divided by 83 = 1.3 weeks was our Absorption Rate for 2008
5. How does that compare with last year and the year before?
Absorption Rate increased over 16 weeks!
6. How do January 2009 sales compare with January 2008 sales?
- Closed Sales for January 2009 = 507
- Closed Sales for January 2008 = 362
*We've Closed 145 MORE properties YTD!
7. How does that compare with November and December of last year?
- Closed Sales for November 2008 = 519
- Closed Sales for December 2008 = 595*
- Closed Sales for November 2007 = 321
- Closed Sales for December 2007 = 353
*Comparing 01/2009 to 12/2008 we're 88 Sales behind...
8. What is the best selling product in your market? What is the worst selling product? Why?
Clearly our worst selling product for 2009, so far, is our Commercial Real Estate with our Lots & Land coming in a close second. The Coachella Valley is still growing and our Commercial projects will increase over the next 10 years, however has (like everything else) been greatly affected by this recession.
Our best selling product in the Coachella Valley thus far is our Single-Family Residences; just 13 Sales off track which I think we'll make up before this 1st quarter is over. Buyers are coming out of the wood-work, most antsy to snatch up the deals (A.K.A Real Estate Owned/Short Sale properties).
9. How much of your market is foreclosure related? How many foreclosures have occurred in your market in January & February?
We would say 55% of our Market is Distressed Properties. Here are our #'s:
- Total Notice of Default (NOD) Active since 01/01/09 = 102
- Total Real Estate Owned (REO) Active since 01/01/09 = 495
- Total Notice of Default (NOD) Sales since 01/01/09 = 34
- Total Real Estate Owned (REO) Sales since 01/01/09 = 550
- Total Distressed Active Properties since 01/01/09 = 597
- Total Distressed Sold Properties since 01/01/09 = 584
10. What are your observations on local financing?
The money is there - and fundable. It's all about your CREDIT SCORE!
11. What are your observations on local appraisals?
Ridiculous. Depending on the lender, most appraisers come from OUTSIDE our Valley. Our comps are obviously established by the REO Sales which kill our "normal" properties AND aside from being timid and hyper-sensitive they're adding an additional 10-20% DECREASE IN VALUE based on "a deteriorating market".
12. What is the best advice you would give a Buyer in your market?
In a nut shell? . ..Cash is King - our inventory is your playground!
13. What is the best advice you would give a Seller in your market?
Don't Sell!! JUST KIDDING;) Our advice depends on the Seller's situation, their time frame & reason for selling. Not everyone is in arrears but for those who are, we spend even more energy counseling, educating & assessing their options as well as focus on power pricing & positioning etc.
*Please Keep in mind, this information was pulled on Thursday, February 19th, 2009 around 7PM and is bound to change before Grey's Anatomy starts at 9PM;)
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