Palm Springs Real Estate Market Trends – Through January, 2013

March 7, 2013 by Dick Sakowicz Leave a Comment

In my last analysis of Palm Springs real estate market trends on October 18, 2012, we showed inventories of Palm Springs homes for sale at a low not seen since at least 2000. Since we were just entering our snowbird season, I predicted a rise in active listings.

Historically over the last ten years, an increase in active property listings in Palm Springs has taken place preceding and during our snowbird season from October through March. The number usually reaches a peak in January/February and this year has been no different. The graph to the left, updated with activity through January 2013, shows this rather clearly. So as expected, the available inventory of residential properties (of all types) for sale in Palm Springs did increase substantially in all price ranges from a low of 387 homes in August 2012 to a high of 584 in January 2013. This is a rather significant 50+ % increase from August 2012 and includes a pretty healthy monthly increase of 12.5% from December to January.

This increase in available sales inventory leaves us with the total number of homes still way below the peak in July of 2007 when Palm Springs had 1697 active listings for sale. In fact, presently and in spite of this increase, the number of Palm Springs homes for sale is down over 18% from just 15 months ago.

So the take away message for you on the Palm Springs real estate market trends is that our inventory is still very low by historical standards and still holding as a Seller’s Market. Well priced single family homes and condos in good areas are quickly attracting multiple bids.

My next blog to follow will review the pricing trends associated with these inventory trends. Please remember to call me with all of your real estate needs. I’ll be happy to help!

Palm Springs Real Estate Market Trends, October 18, 2012

October 18, 2012 by Dick Sakowicz Leave a Comment

Recently I did a study for a client who asked the simple question, “Are Palm Springs real estate prices rising, falling, or steady?” My answer to the question was determined by evaluating all Palm Springs properties for sale and sold in on our Desert Area MLS for the last twelve months. I included both single family homes and condos. An analysis of Palm Springs real estate market trends shows the following:

1. Low End Properties – Below $200K, prices are up about 13% from a year ago, and inventory is down over 60%. This is where most investors are looking, and they are bidding up prices. We have lots of short sales but few REO’s.
2. Upper Low End Properties – Prices in the $200K to $500K are down 4% and inventory is down about 36%. This category includes lots of short sales, but not many REO’s.
3. Moderately Priced Properties – At the level of $500K to $1M, prices are up a slight 2% but are mostly flat. Inventory is down 25%.
4. High End Properties – Prices for homes above $1M are up 25%, and inventory is down 40%.

Inventories in all price ranges, except for homes in the $500K to $1M range, are significantly lower than a year ago.

Real Estate Market Trends in Palm Springs

I then checked Palm Springs real estate market trends in the MLS sales records as far back as I could go, which is thirteen (13) years. I found that we have never had this few properties for sale in Palm Springs, at least not since 2000. In this graph, dark blue represents Homes Sold, light blue represents Homes Listed during that time.

As we are now entering our winter “snow bird season”, we can expect a predictable seasonal increase in the number of new active listings, with prices peaking in December or January. The season will mostly end by the end of March and we will return to lower inventory levels.

Throughout the Palm Springs real estate market, I anticipate that, while inventories remain at relatively low levels, prices at all market levels will likely be going up for the foreseeable future. My answer is general in nature but does give a “feeling” of the dynamics of the Palm Springs real estate market today.

That’s it for now. Please check out all the great search features here on our new web site! And remember to call or email me with all of your real estate needs. I’ll be happy to help.

____ Dick Sakowicz
____ Re/Max Real Estate Consultants
____ Direct: 760 861-0952
____ [email protected]

Palm Springs Hosts the AOPA Aviation Summit

October 9, 2012 by Frances Sakowicz Leave a Comment

This Wednesday, October 10, Palm Springs hosts the AOPA Aviation Summit* with their kick off of an exciting Parade of Planes, a signature event of their summits. Dozens of planes will taxi under their own power from the Palm Springs International Airport through the streets of the city over a two mile route to the Palm Springs Convention Center. These planes will be displayed on the streets surrounding the Convention Center during the event.

The Summit officially begins its program on Thursday, October 11 and runs through Saturday, October 13. Pilots, aviation industry representatives and plane enthusiasts numbering in the thousands will convene in Palm Springs for 3 days of fun, with many interactive educational seminars – including one on how to use your iPad in the cockpit using apps to pull up flight paths, weather conditions. There will be a flight simulator which will allow you to sit in the cockpit and “fly”. Some events will offer pilots actual flight opportunities with those pilots who’ve brought their own aircraft. There will even be a hot air balloon ride option. Overall, 400+ exhibitors will display their aviation supplies,gadgets, and interactive displays in the Convention Center. Special social events are numerous and include a Night for Flight with the proceeds going to charity. There is even a sweepstake to win a Tougher than a Tornado aircraft.

Harrison Ford will give the Keynote Address for Friday. Joining Harrison in the celebrity category will be well known pilots and celebrities in the aviation field. One event that I thought would be especially interesting is a presentation on the use of airplanes in the movie industry, with examples given from specific blockbuster films.

We welcome our guests to Palm Springs for the AOPA Aviation Summit! With the significant investment our city has made in upgrades since AOPA’s last time here in 2006, they chose to come here again, both this year, and also in 2014. It’s all good for Palm Springs Real Estate owners. Now, one last thing – if you miss seeing the Parade of Planes on Wednesday, you’ll have a second chance on Saturday afternoon from 3 to 5pm when they taxi back to the airport for their flights home.

*Aircraft Owners and Pilots Association.

Palm Springs will host Canada Fest

September 26, 2012 by Dick Sakowicz Leave a Comment

Palm Springs will host Canada Fest 2012, the first event of its kind in Palm Springs, to celebrate our special relationship with our Canadian neighbors. The other desert cities will join with us in welcoming Canadians and Californians at Canada Fest 2012, to be held on December 8-9, 2012 at the Palm Springs Convention Center. Canada Fest will be both a celebration of our area’s close relationship with Canada and a big expression of our profound appreciation for their part in helping Palm Springs grow into the world class winter vacation destination it is today. After all, with so many Canadians choosing to buy Palm Springs real estate for their winter homes and many more visiting here from October through March, the valley’s population more than doubles in winter. This Canadian presence brings much vitality and energy to our desert cities.

Canada Fest is going to be a big deal! Canadian Ambassador to the United States Gary Doer and the mayors of Vancouver and Montreal will attend. There will be a Royal Canadian Mounted Police officer, hosted by one of our own mounted police officers, and we’ll have our own Politicos present including California Senator Barbara Boxer, and our local House Representative Mary Bono Mack. The event will offer a wide array of vendors, with more than 200 booths (including ours!), filling the Palm Springs Convention Center, and even spilling out into the courtyard and beyond. There will be food, music and entertainers, lots of prizes, fashion shows and furs, face painting for the children and much more. If you like pretty girls, you’ll enjoy being greeted at the door by Miss Universe Canada who represents all of the Provinces of Canada and Miss Greater Palm Springs who will represent our cities in the valley. Attendance is expected to be around 20,000 over the two day period, drawing attendees from throughout Southern California.

Yes, one of the booths at the Palm Springs Canada Fest will be our own Dick Sakowicz -RE/MAX Real Estate booth with lots of information on Palm Springs properties for sale. Frances and I will be there to greet you! So mark your calendar for the weekend of December 8 and 9, 2012, bring your friends and we’ll see you there! For more info, go to Canada Fest 2012.

Palm Springs Real Estate Market Trends, Sept. 20, 2012

September 20, 2012 by Dick Sakowicz Leave a Comment

At latest count, the number of single family homes for sale in the entire Coachella Valley – from Palm Springs to Indio, in all prices ranges, is down to less than 2000 units. That’s over a 60% decrease in the number of properties for sale in Palm Springs and throughout the Valley in just two years. The decrease in available single family homes for sale in Palm Springs alone is just as dramatic, with slightly less than 180 homes for sale, compared to over 480 just two years ago. What is happening in the Palm Springs real estate market mirrors the current national trend in real estate as discussed in a July 29, 2012 LA Times article, Shrinking Supply of Homes for Sale. The last 24 months have been really active with lots of buyers scooping up available houses and taking advantage of historically low mortgage interest rates.

Market Trends in Palm Springs Real Estate

With shrinking inventories of Palm Springs real estate, we are experiencing more and more multiple offers. We clearly have seen prices increase in selected communities and neighborhoods where activity is highest. Typically prices below $180-200K are attracting the largest number of buyers. Properties in this price range are the most affordable for individuals looking to buy their family home and are also attractive to investors who are looking for good investment rental properties, with an expected ROI (return on investment) of 6-8% after expenses. It’s like a feeding frenzy at this end of the market.

The bottom line is this. If you’ve been considering buying a piece of Palm Springs real estate – a winter home, or an investment property, start the process now because there could be even more competition should inventories continue to decrease. When you decide to start your search, it is important to use a professional, local REALTOR who is knowledgeable about our Palm Springs area, its communities and neighborhoods. I would be happy to help you with all of your real estate needs, and answer any questions you might have.

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

For Canadians Buying a Home in Palm Springs, the Stars are Again Aligned

September 11, 2012 by Dick Sakowicz Leave a Comment

Recently, in preparing to leave Palm Springs for a brief vacation in Canada, I stopped by my local bank to buy some CAD. As I paid $438.91 US for $415.00 CA, it was again made clear to me what an advantage this strong currency offers a Canadian buyer each time the Loonie reaches parity with our Greenback. Yes, bank transaction fees drove up my costs a little, but still it’s clear that for Canadians buying a home in Palm Springs, the strong Loonie buys them more than what you get with the US dollar.

I blogged last October 2011 about Canadians buying a home in Palm Springs, stating that the Canadian dollar was again over parity with the US dollar. Since then, the Loonie has had quite a ride; it hit a low of 96 cents against the USD on May 12, 2012 and has been generally rising since then. The Loonie crossed parity again on August 5, 2012 and so far hasn’t fallen back, closing at $1.03 today, September 11, 2012. According to Reuters, “the Canadian dollar spiked to a 13 month high against the US dollar” today.

Palm Springs for Canadians

The Palm Springs real estate market, as far as pricing is concerned, is much as it was last year with prices still at about 2003 levels. The one noticeable difference is that inventories in many locations are down significantly. In fact, the total valley wide inventory of all unsold properties last month was down about 40%, just since last October.

So, if you’re considering being amongst those Canadians buying a home in Palm Springs as your getaway for the snowy winter months, this might be the year to do it. There was a larger selection of homes last season, but with our low prices, it’s still a buyers’ market. Here’s the caveat – unless our inventory increases substantially in the next few months, we might be saying good-bye to the buyers’ market enjoyed since 2006/07 and begin seeing a sellers’ market which would mean higher prices on the horizon. Those buying Palm Springs real estate now will find our prices are still low. The unsold inventory is shrinking, but prices are still at reasonable levels, and importantly for Canadians – the Loonie is strong against the US dollar. I encourage you to take advantage of the Loonie’s current strength and buy this season. Remember, timing really is everything.

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