Palm Springs Real Estate Market Trends September 2013

November 6, 2013 by Dick Sakowicz Leave a Comment

Palm Springs real estate market trends September 2013 showed that we are beginning to see our seasonal population increase toward a probable peak in January/February. It’s been fairly quiet through September/October with a few early arrivals and our usual tourists. Now in November we will see a much larger influx of snow birds coming to Palm Springs to enjoy our warm weather, as their pleasant fall weather at home turns to cold winter conditions. As inhabitants increase in number, so does our inventory of properties for sale. Our inventory of unsold properties bottomed in July at 404 and has risen to close out September at 495. Palm Springs “average prices” that peaked in June at $218/sq.ft. have trended down about 6% from $218/sq.ft. in September to $198 now. However, year over year prices are still up over 15% from September last year. Here is what happened in September for each price category:

Low End – Below $200K Fewer small investors were active in September as increased prices presented less ROI value, compared to last year. Prices in September were up 11% compared to the same period last year. With less investors buying due to higher prices, unsold inventories increased over 13% to 86 units, and the number of sold properties dropped 17% to 39 units in one month. With higher prices and fewer foreclosures, this market should return to a more normal market place, less investor driven, with a modest increase in inventories and slower price increases.
Upper Low End – $200K to $500K Inventory in this category continued an upward trend increasing about 9% to 215 units. Prices dropped slightly by about 3% to an average of $182/sq. The number of sold properties also dropped by about 7% to 58 units, compared to 62 last month.
Moderately Priced Properties – $500K to $1M Inventories continued to increase in September, up over 10% to 131 units. Conversely sales have dropped 18% to 23 units. Prices have remained essentially flat – down 3%.
High End Properties – $1M and over What a difference a month makes! Perhaps anticipation of an increase in potential buyers spurred the number of active listings in this category to explode in September to 63 units, up 34% from August, and up a whopping 75% from September last year. The number of units actually sold though was flat at a paltry 4 units. As I suspected, the summer lull for properties in this category is over. Prices on active listings are up about 9% and sold prices are down, but the number of sold units was so low that it wasn’t really statistically relevant.

In summary, the real estate market here is pretty much behaving normally. Inventory is increasing as snow birds return and should continue rising to a peak in January. With inventories now building, we should start seeing the market shift a bit from a Seller’s market toward a Buyer’s market, particularly where we see the greatest increases in unsold inventory. Prices that have been somewhat flat should start experiencing some downward pressure. Stay tuned for the next report.

Palm Springs Real Estate Market Trends September 2013

November 6, 2013 by Dick Sakowicz Leave a Comment

Palm Springs real estate market trends September 2013 showed that as fall arrives, we are beginning to see our seasonal population increase toward a probable peak in January/February. It’s been fairly quiet through September/October with a few early arrivals and our usual tourists. Now in November we will see a much larger influx of “snow birds” coming to Palm Springs to enjoy our warm weather, as their pleasant fall weather turns to cold winter conditions. As inhabitants increase in number, so does our inventory of properties for sale. As we reviewed last time, our inventory of unsold properties bottomed in July at 404 and has risen to close out September at 495. Palm Springs average prices that peaked in June at $218/sq. ft. have trended down to $198, to about 6% in September, compared to August. Here is what happened in September for each price category:

Low End – Below $200K Fewer small investors were active in September as increased prices presented less ROI value, compared to last year. Prices in September were up 11% compared to the same period last year. With less investors buying due to higher prices, unsold inventories increased over 13% to 86 units, and the number of sold properties dropped 17% to 39 units in one month. With higher prices and fewer foreclosures, this market should return to a more normal market place, less investor driven, with a modest increase in inventories and slower price increases.

Upper Low End – $200K to $500K Inventory in this category continued an upward trend increasing about 9% to 215 units. Prices dropped slightly by about 3% to an average of $182/sq. The number of sold properties also dropped by about 7% to 58 units, compared to 62 last month.

Moderately Priced Properties – $500K to $1M Inventories continued to increase in September, up over 10% to 131 units. Conversely sales have dropped 18% to 23 units. Prices have remained essentially flat – down 3%.

High End Properties – $1M and over What a difference a month makes! Perhaps anticipation of an increase in potential buyers spurred the number of active listings in this category to explode in September to 63 units, up 34% from August, and up a whopping 75% from September last year. The number of units sold was flat at a paltry 4 units. As I suspected, the summer lull for properties in this category is over. Prices on active listings are up about 9% and sold prices are down, but the number of sold units was so low that it wasn’t really statistically relevant.

In summary, Palm Springs real estate market trends September show that the market here is pretty much behaving normally*. Inventory is starting to increase as snow birds return and should continue rising to a peak in January. With inventories now building, we should start seeing the market shift a bit from a Seller’s market toward a Buyer’s market, particularly where we see the greatest increases in unsold inventory. Prices that have been somewhat flat should start experiencing some downward pressure. Stay tuned for the next report.

*Latest data available today. We’ll update when more current stats are available.

PALM SPRINGS REAL ESTATE MARKET TRENDS March 2013

April 28, 2013 by Dick Sakowicz Leave a Comment

We are exposed to a lot of general information on real estate market trends – on a macro scale nationally, state by state, and even regionally. For these reports and today I focus specifically on Palm Springs real estate market trends March 2013. If you are interested in another valley city, I would be happy to expand the report.

Inventory trends have been very consistent over the last ten years. As expected, the available inventory of residential properties in all price ranges this past winter did increase substantially. Inventory grew from a low of 387 in August 2012 to a high of 584 in January 2013. This is a rather significant 50+ % increase from August 2012 and includes a healthy increase of 12.5% for one month alone – from December to January, when we peaked. In March, the numbers decreased 6% from 584 to 529. We’d have to go back to March 2004 to see similar low levels of available inventory. Low inventories usually mean higher prices. We will see.

As far as real estate market trends in Palm Springs for all properties and all prices go, with inventories coming down over 45% in six months, you would expect to see prices up, and that is what happened. Average prices have increased about 14% across all price ranges but differ somewhat within each category:

Low End Properties – Below $200K
Where many investors are active, inventory growth has slowed to 4%, about the same level as six months ago. Prices are up only slightly at 5.7%.
Upper Low End Properties – $200K to $500K
Property inventory numbers are up about 47% in the last six months. Prices have risen steadily since August at a healthy 10%, in spite of the substantial inventory increase.
Moderately Priced Properties – $500K to $1M
Inventory increase has slowed but is still up 14% over the last six month period. Prices are up about 8%, compared to six months ago.
High End Properties – Over $1M
Inventory numbers continued to increase at over 20% – from 63 in January to 75 units in March. Prices are up over 28% in the last six months.

In summary, we entered our peak snowbird season with historically low inventory, and during the season we experienced the predictable inventory increase, peaking in January/February. Now we can expect to see the customary drop in inventory that usually follows the snowbirds’ departure.

The question is – will prices continue to trend up as inventory falls? My guess is that prices will be under increasing upward pressure and the average price will rise substantially. The exception might be at the very low end where many buy-and-hold investors (excluding flippers) will be priced out of the market. One thing is clear, it is now definitely a sellers’ market!

Canadians Buying a Palm Springs Home Receive Good News

October 31, 2011 by Dick Sakowicz Leave a Comment

Canadians buying a Palm Springs home receive good news – the Canadian dollar is back to, or is greater than, parity with the US Dollar. Last Thursday, October 27th, the Loonie rose above parity with our Greenback to its highest level in more than a month. Trading closed with the Canadian dollar buying $1.0092US. This most recent rise in value of the Canadian dollar is primarily a reaction to the news of European leaders striking a deal to solve the European debt crisis.

As “high season” begins here in Palm Springs, the stars are all coming into alignment for Canadians who are looking into buying a home in Palm Springs for a winter retreat or vacation property. Palms Springs for Canadians is truly a buyer’s market – with low prices, good inventory levels, and now once again parity or better for the Loonie against the US dollar. Timing is everything, so take advantage and buy your place in the sun this season in beautiful Palm Springs. You’re going to love it! For details on the recent Canadian currency movement, see Canadian Dollar Gains.

For more information and help with all your real estate needs, call Dick Sakowicz today.

Dick Sakowicz
direct: 760 861-0952
[email protected]

Palm Springs Home Prices May Rise

October 27, 2011 by Dick Sakowicz Leave a Comment

A recent article in our local Desert Sun newspaper entitled Fewer Coachella Valley Homes for Sale reported that Palm Springs home prices may rise in the not too distant future. To support this, the article stated that the Palm Springs area inventory went down by more than a 1000 homes in the last four months. Further, our desert area MLS has reported that the unsold active inventory is down about 22% from 5681 properties for sale in September a year ago, to 4418 properties this September.

The reduction in our valley inventory is probably due to a combination of factors – lots of cash investors attracted by low prices, those sellers unwilling to sell at current prices and thus not listing, and sellers pulling their properties off the market. Also, there’s a general suspicion that banks are slowing the introduction of newly foreclosed homes into the inventory. In fact, the article went on to state that the number of bank owned properties for sale today has dropped 39% since one year ago.

Home Prices in Palm Springs May Rise
Where inventories are low, I think it possible that, in selected areas, our home prices in Palm Springs may rise with these shifting conditions. There are two things that drive this – low inventory and desirable location. Thus, the more desirable the location, the more likely this will happen. It’s striking that what’s happening in Palm Springs mirrors what is happening throughout “California and throughout the nation.” Although I am not a fan of gross national averages, the article did state that nationally, the number of listings is presently down to the lowest point since 2007. So we can see that statistics do indicate that something new is going on throughout the nation’s real estate market. It usually follows that inventory drives prices, that is to say:

The more scarce the inventory, the higher the prices.

Knowing that all these factors create a situation in which home prices in Palm Springs may rise, it’s going to be very interesting to track our market conditions in the next few months, as our busy selling season is just beginning. I’ve been saying the same thing for many months, and the Desert Sun article just adds emphasis to my position that, while mortgage loans are at historically low interest rates, and prices are still way down, this remains a great time to be buying a home in Palm Springs! For the entire article, read Fewer Valley Homes for Sale.

Dick Sakowicz is a REALTOR with ReMax Real Estate Consultants who lives in Palm Springs and serves the greater Palm Springs area.

It’s Thanksgiving Day in Canada, Columbus Day in the U S

October 10, 2011 by Frances Sakowicz Leave a Comment

It’s Thanksgiving Day in Canada, Columbus Day in the U S. On the second Monday in October each year since 1957, our Canadian neighbors have officially celebrated their blessings and the bountiful harvest of the season. This public holiday is called Thanksgiving Day, or Jour de l’Action de grace in Quebec. For most of Canada, Thanksgiving is a statutory holiday, with the exceptions being the Atlantic provinces of Prince Edward Island, Newfoundland and Labrador, New Brunswick and Nova Scotia.

While the actual Thanksgiving holiday is on a Monday, Canadians might eat their traditional meal on any day of the three-day weekend, with Sunday or Monday being the most common. This autumnal tradition in Canada corresponds to European Harvest Festivals. It also corresponds to our own US Thanksgiving weekend in November with similar events including parades and football games. Canadian Thanksgiving time includes an Oktoberfest Parade and the Canadian Football League’s doubleheader known as the Thanksgiving Day Classic, all broadcast nationwide. Adding to the holiday spirit of Thanksgiving in both countries are the pumpkins, sheaves of grain, cornucopias, corn, and other harvest symbols used for decorations in businesses, homes, and churches.

Canadian celebrations of harvest had gone on for centuries with the indigenous peoples holding festivals, ceremonial dances and other practices, long before the arrival of Europeans. The more recent history of Thanksgiving in Canada can be traced back to the 1578 voyage of Martin Frobisher from England in search of the Northwest Passage. A few years later French explorers and settlers, led by Samuel de Champlain, arrived in Canada in 1604 and also held huge feasts of thanks.

Today, as on every second Monday in October, the Thanksgiving celebration of harvest time in Canada coincides with Columbus Day in the United States, which honors Christopher Columbus’ arrival here in 1492. Columbus Day is observed throughout most of the states; however, a few have chosen to rename the anniversary for historical or cultural events more closely aligned with their own region and populace; and Alaska doesn’t celebrate Columbus Day at all.

So, in conclusion, whether you are a Canadian celebrating Thanksgiving Day, or a US citizen observing Columbus Day, we hope that it’s a good time for all!

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