tg wrote this at 6:38 pm on November 17, 2005:

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The Desert Sun published this article yesterday entitled “Valley housing market continues to thrive”. This theme seems to be shared by every news source and every speaker that has spoken at real estate conventions or gatherings in the Coachella Valley lately. There’s no doubt that the market has changed since the end of 2004, when homes would sell in minutes and the entire valley appreciated at a rate of 49%. Appreciation rates are slower now, but are still extremely positive. Economists are expecting the valley to appreciate at a rate of 20% in 2005 AND 2006. The positive news is fueled primarily by demand. 52* people are moving to the Coachella Valley each day (*this number comes from the Desert Sun, and I’ve heard anywhere between 52-55). The baby boomers have identified CV as a place to retire because the warm weather obviously can’t be beat (especially in July and August!) We often hear mutterings of a “bubble” from people primarily outside of our market, but every legitimate source that I’ve heard has said there will be no bursting of a bubble, if anything, more of a “soft landing”. So the real estate outlook looks very positive right now — values are increasing, but just a little slower, and arguably “healthier”, than in the past. The challenge is to just convince the sellers that prices are still going up, but just not as quickly as they have in the past.

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