tom wrote this at 6:48 am on May 27, 2008:

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Have you ever picked up a newspaper and seen a headline about how home prices have dropped and the world is going dark only to see the next day’s paper have an exact oposite story? How can this be? Well, some of the reason is that a lot of the doom and gloom stories are written by the AP or UPI and reflect “national” statistics which include areas like Detroit where the economy is really suffering and the news is clearly not good. But the Coachella Valley is not the center of the american auto industry and things simply are not that bad here. Most of the positive stories are written by local reporters who are living in this economy. I can’t tell you how many times I have heard buyers say “This home is overpriced - haven’t you read the newspapers?”

Today, I read an interesting comentary by Blanche Evans, Editor of Realty Times (www.realtytimes.com) where she points out that the statistics used by most reporters may not be totally acurate and certainly not unbiased. I have attached a link to the article which I would recommend to everyone. Click here to read “Getting Case/Shillered”

Also, I just visited the Foxnews website to check on the condition of the planet and noticed the follwowing headline: “New home sales post unsuspected gain in April”… Click here to read that article.

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tg wrote this at 2:53 pm on January 3, 2008:

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Happy New Year — I am so excited that 2008 is finally here! Bring on the 2nd generation iPhone; bring on the 2008 Superbowl champions and bring on new growth in La Quinta. Here’s a quick snapshot of what we have to look foward to in La Quinta in 2008:

• A retail-commercial project across the street from Old Town La Quinta on Calle Tampico (estimated around 20 million) is expected to break ground. According to the La Quinta Sun (a weekly supplement from the Desert Sun), the project will be anchored by a new Fresh & Easy grocery store. This will be great for residents and merchants as it will give even more reason for consumers to visit the Old Town area and the multitude of shops there. This new center is expected to open in early 2009.
• Old Town Bar & Grill (which was once Main St. Bar & Grill) should open this month, according to the La Quinta Sun. Nice! I wonder if they’ll do karaoke again on Thursday nights?
• SilverRock is currently getting ready for its first Bob Hope Chrysler Classic which opens in a few weeks.
• La Solana, the new condo and hotel development that Lowe Destination Development will build at SilverRock resort, is expected to break ground this year. The 200-plus room condo-hotel will consume 61 acres on the grounds of SilverRock. As of last June, the units are expected to sell in the $750,000 range, and I believe at least some of the product will offer fractional ownership possibilities.

This is just a quick snap shot of what’s happening. We’ll keep this updated with more detail as projects come online. La Quinta is growing rapidly — it’s a great time to be a part of our desert community. Happy new year!

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tg wrote this at 2:03 pm on November 28, 2007:

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You may have noticed that we just updated the homepage of our site a little bit by adding a reports section (and the addition of Tom’s long overdue picture to the about-us box.) In an ongoing effort to keep you as informed about today’s market as possible, we’re offering a few reports (more are coming) that will help keep you abreast of the current market and how it compares to past, historical trends. Please take a look at these reports and let us know what questions or thoughts you have. We’re here for you — let us know how we can help.

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gail wrote this at 4:02 pm on September 19, 2007:

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In our weekly office meeting today, our manager discussed a seminar that he had just heard at a Coldwell Banker Previews meeting in Monterey. The speaker was Gary Watts, a real estate economist based in Southern California, and his talk was entitled “The Real State of Real Estate 2007″. Although his speech touched upon many points, the main point that struck me (when reading a printout of his seminar) was his positive take on the news and outlook on the real estate market in a world that is so consumed by the horrendously negative news media. As we all know, the real estate market has had an adjustment this year (creating a hot buyer’s market by the way), but the market is no where near the sky-is-falling situation that the media wants you to believe, and from Mr. Watts we finally have a report which takes the same information that the media has had for the last year, and introduces it in a positive way. What a breath of fresh air!

The following are some interesting points that Gary Watts made in his speech by remembering the real estate market for the last 30 years:

Quote from Business Week in 1969:

The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000.

Quote from National Business Magazine in 1997:

“The median price of a home today is approaching $50,000…housing experts predict price rises in the future won’t be that great.”

Quote from Money Magazine in 1985:

“The golden-age of rish free run-ups in home prices is gone.”

Quote from the San Francisco Examiner in 1996:

“A home is where the bad investment is.”

Mr. Watts uses these examples to show that the media has always focused on the bad economic news, and he feels this is happening now more than ever. As he also states, our current economy is “extremely strong, profits are superb and the world economy is exploding.”

I have noticed that one big question buyers have right now is: “Is now the right time to buy?” They think nothing will be lost by waiting to see what the market does (especially with the current state of the mortgage industry). Here are a few interesting points that our Reginal Vice President highlighted today:

• Timing the market: The real estate market is cyclical. If you look to history, a downturn in the market on average lasts 27 months. His estimation of this downturn is that we are in month 24 of this 27 month cycle. There are some EXCELLENT opportunities for buyers right now.
• Foreclosures: He also addressed the fact that some buyers are waiting for foreclosures to flood the market. According to Gary Watts, the statistics regarding foreclosures are as follows: As of last month, there was 1 filing for foreclosure per every 653 houses in America. Presently, one out of every 10 buyers in the country is ending up in foreclosure. California now ranks #4 in the nation in foreclosures (down from #1!).
• Babyboomers: Over the next decade, there will be a %25 increase in the population over 50 years of age. Our Desert region is a high demand destination for this demographic which will keep the demand high for housing.

These are just a few points that I thought were interesting… It’s nice to finally hear some positive news on the market. Email me and I’ll send you a copy of this 7 page speech outline.

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tg wrote this at 1:48 pm on July 15, 2007:

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Are you looking for your dream home at an unbeatable price? Look no more… We have reduced our listing at 77765 Concha Ct. in the Haciendas in La Quinta to $799,000! (It’s been reduced more than $150,000 for a quick sale!) Look at the unbelieveable criteria:

* 4 Beds; 3.5 Baths; 2748 Sq. Ft.
* 2 room casita; formal dining room and greatroom floorplan!
* Furnished Per Inventory!
* On a Prestigious Golf Course — The 13th hole of the La Quinta Resort Dunes Course.
* In the Haciendas at La Quinta Resort.
* HOA dues are ONLY $145/mo!
* Western Mountain Views, and no houses across the fairway.
* Large custom pool and spa (lap pool size).
* Huge upgrades: tile throughout; granite and marble counters; stainless appliances; custom mural paintings.

And…! Are you looking for a membership to the resort??? (which includes 3 golf courses, approx 20 tennis courts, spa, 3 restaurants, shopping, fitness etc.) The 100% refundable membership is being offered with a $25,000 credit to the buyer! These “Heritage golf memberships” (which are 100% refundable) are rare as they are no longer for sale through the membership office at the resort. Here’s how it works: The membership deposit is $100,000 — you get the full $100,000 back when you in-turn sell it when selling this house. When you purchase this membership, the seller will write you a check for $25,000!

Click here to see pictures, a virtual tour and more details. This is priced at $290 per square foot. Homes are selling in this development well over $300 per square foot. This home is a true gem — we can’t say enough about it. Please call us today if you’d like to see it: 760-203-2621.

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gail wrote this at 2:06 pm on May 4, 2007:

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There certainly has been a lot of talk about the real estate market this year and how it has dramatically changed from a seller’s market to a buyer’s market. If you believe all that you read on a given day, you will believe that we are presently in a depressed market and only fools would rush in! Then, on another given day, you will read that home sales are up and prices are down. Still, if you pick up the paper on yet another day you may read that home sales are down, but the prices are up from last year. What we hear or read seems to depend on the author of the piece and his /her agenda. So, what is really happening?

Well, first of all, I think that it is important to separate the Desert market from all other markets. The Desert is still one of the lowest priced desirable places to live in California. “Coachella Valley has really seen better numbers than a lot of areas nationally and in parts of California,” said Sam Schenkl, executive officer of the Palm Springs Regional Association of Realtors. The reasons for this are simple: the baby boomers are ready for their dreams to come true and this is where they want to be. Also, Californians living in the coastal areas are often cashing in on their large equity gains, and moving to the Desert where, in comparison, the prices are still very low, and the quality of life is very high.

However, given the above statements, it is still true that the market has changed substantially in the Desert from a year ago. It has turned from a seller’s market, with very few homes to choose from, to a buyer’s market with twice the inventory of a year ago. Because of this, the prices have dropped from last year. In my opinion, they have come down about 10%. Since the prices went up 60% in the last 3 years, the fact that they have now come down 10% does not make for a depressed market. Unfortunately, it is true that there are sellers who bought when the variable interest rates were 5% and took out 100% loans. Those loans are now adjusting and suddenly those buyers have found themselves with mortgage payments twice what they were, and can’t handle these new payments. Some of those homes are now in foreclosure. However, according to Senator John Seymour, former real estate broker and President of the California Association of Realtors, the notices of default for homes in the Desert are still at a very low percentage, regardless of what you read in the papers.

So, what does all this mean? Despite the fact that it is now a buyer’s market due to the fact that there are twice as many homes for sale as there were a year ago, homes are still selling-they are just taking longer. On average we have noticed that it is taking roughly 4 to 5 months for homes to sell now. The Envision Group, a marketing firm from L.A. just completed a report on the housing market that states that there are the same number of buyers out there from a year ago, but just more inventory, so the market “feels” much slower because there are fewer buyers proportionate to the available homes.
DataQuick (another Real Estate data service) reported: “Overall home sales in the valley were up considerably in March compared with February. Units sold jumped nearly 33 percent - 937 homes sold in March from 705 in February”.

Many buyers are still waiting for the market to hit the bottom. They are reading the papers and waiting for the media to announce when the bottom hits. In my opinion, the fact that the homes are selling and the inventory is now beginning to decline indicates that we do not need to wait for the media to wave a magic wand. The prices have come down, homes are definitely not going at the listing price, but the homes are selling. We are even starting to see some multiple offers. My feeling is that prices are now stabilizing. Although the homes are taking much longer to sell, due to the fact that the buyers have more choices, the homes are selling and the inventory is starting to go down from where it was a few months ago.

I am very optimistic about the current market. I feel that this is a normal market, as opposed to the craziness of a few years ago. If you are realistic in your real estate goals, whether you are a buyer or a seller, there are tremendous opportunities for you in our Desert.

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tom wrote this at 1:16 pm on February 8, 2007:

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We at La Quinta Desert Properties spend a lot of time discussing and trying to understand the local real estate market and especially what drives it and how those factors might affect our clients. We obviously noticed that last July, the real estate market in the Coachella Valley experienced a sudden and quiet event - a return to normalcy. While real estate in most of the country became “depressed” according to numerous articles appearing on the news wires and showing up in local newspapers all across the country, in out opinion, the frantic sellers market in our local valley just changed to a more normal market that we enjoyed prior to 2004. The frequent articles appearing in even our local paper spoke of the doom and gloom evident in other, unrelated parts of the country but the Coachella Valley did not demonstrate any of the symptoms highlighted in these articles.

During the hot summer months, buyers were not clamoring to see and buy homes as if it were their very last chance before the interest rates soared (which had arguably been a key ingredient to buying frenzy previously). As the summer heat gave way to a new fall season and interest rates did not soar, people began to get back in the market. At first, the over a million dollar homes started to see action. During the holidays and especially toward the end of January, the below a million dollar homes seemed to see a major increase in action.

We at La Quinta Desert Properties have had the best January ever. Finally, the valley’s Desert Sun newspaper published a very positive article (click here to read) about the health of our market in the Coachella Valley. The article, entitled: “Is the valley real estate market returning to normal? Yes, experts say”, points out the statistics to back up what we are now seeing.

Each morning, we do a specialized search of the Multiple Listing Service (MLS) for new homes that have come on the market in the last 24 hours. In addition to “new listings”, the report also shows all the price increases, decreases and sales that the current listings have experienced since we last visited the MLS. For a while the price decreases clearly out numbered the increases but that trend is beginning to change. And the sales were clearly lacking indicating that “price” was not as big a factor as was the lack of motivated buyers. It is our opinion that the buyers that were here were reacting to all the negative news and waiting for the sky to fall so they could get the deal of a lifetime. Yes, there are some terrific deals out there right now, but, for so many different reasons, the sky is not going to fall in the Coachella Valley! We believe that the current increase in serious buyers is because of the pent up demand that has been building since last July. People want to live here and they are proving that everyday!

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tom wrote this at 6:56 pm on November 14, 2006:

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Despite all the negative press, the real estate market in the Coachella Valley in 2006 has been positive overall and has recently showed some very encouraging signs! The market is returning to a more normal, healthy market, as compared to the aggressive appreciation gains we’ve seen in the past 24 months. From late 2003 through 2005, the nation experienced record low mortgage rates that lead to a surging “seller’s market”. That red hot market could not last forever, and we are welcoming this new change — it is good for us all!

With interest rates starting to rise in 2005, the “seller’s market” rose to a fever pitch with buyers fighting to take advantage of the favorable mortgage rates (often below 5%!). As the rates rose, the buyers have relaxed and the “seller’s market” started to fade. By mid-2006, some of this urgency had left which was spurred by the thought that rates were climbing and prices were going down. This past summer we saw sellers start lowering their prices to attract the buyers who, just a few months earlier were clamoring at their doorsteps. As the “seller’s market” faded and inventories rose, the buyers, faced with more choices, started to sit back and wait. The industry slowed down and the national newspapers presented stories of bursting bubbles. Although the average home price in La Quinta only dropped 2.7% (Average sale price January - August as reported by Dataquick Information Services) as compared to last year, other parts of the country like the Detroit area, were hit very hard. Our local newspapers reported a gloomy future for us locally based on these national statistics, which were often irrelevant to the local marketplace here in our desert. Even though buyers were coming to the valley, they seemed to adopt a wait and see attitude assuming the prices would continue to come down. As with a typical changing marketplace, and because of our hot summer months, real estate sales slowed.

However, during the same period, the nation’s economy began to heat up and economic indicators started turning positive as interest rates began to fall. Now, mortgage rates are continuing to drop (you can get a 30 year fixed mortgage - with 10 year I/O - below 6% today!), and we are seeing more buyers returning to our market ready to purchase the home of their dreams. Many of these buyers have been waiting on the sidelines all summer and don’t want to wait any longer. They also realize that today’s market presents a great buying opportunity.

In the years previous to the hot seller’s market, about 10% of the homes in any gated community were typically available for sale. The Citrus, a gated club in La Quinta has about 550 homes and in 2001-2003, about 55 were available for sale. During the 2004-2005 sellers market, that number was down to a low of 9. Today, there are 36 listings: a 400% increase in inventory over 2004-2005 but only 65% of a “normal inventory”. The bubble is not bursting — the market is just changing. Now is still a great time to buy or sell a house!

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tom wrote this at 11:17 am on October 13, 2006:

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Over the years, the price of real estate in the Coachella Valley has fluctuated with the season with prices peaking during the winter/spring “season” and then leveling off in the hot summer months. I was told, when we bought our house, that the best deals could be had at the end of the summer when desperation was a seller’s motivation. In a typical real estate environment, this seems very logical and understandable.

But during the last couple of years, when interest rates were unbelievably low, all past history/trends went out the door. We experienced strong sales year round and last year as the interest rates started to rise, our business was very strong in the summer months, as nobody wanted to miss the great deals. It was a sellers market and the sellers were calling the shots.

This past winter/spring, as the state of our economy became less certain and interest rates rose, the national real estate market appeared to soften as we changed from a “Sellers” market to a “Buyers” market. In this Internet age, buyers are so much better educated then ever before that they are very aware of exactly what the market is doing. This summer selling period could be described as “soft” when compared to recent years past as buyers can get on the Internet, search the local Multiple Listing Service and track home prices on a daily basis if the desire. As in any softening market, Coachella Valley home prices have been coming down, not as much as other parts of California or the country but dropping never-the-less.

At some point, the buyers will decide that the prices are as low as they can reasonably expect and that now is the time to buy. We have been watching a local developer lower his prices all summer long with no results - no results until last weekend. It would appear that the market could be changing again.

What would appear to be happening is as follows:

1. Our national economy is very strong and it would appear that it will remain that way.
2. Interest rates have leveled off and are actually dropping in several areas.
3. The summer “bargain” season is nearing it’s typical end.
4. Baby boomers are not going away and are continually getting closer to retirement age.

What does it all mean?

Can you say, “Pent up demand”?

1. We probably won’t be loosing our jobs in the strong economy.
2. Mortgage rates are stable if not getting lower.
3. The real estate market could begin shifting to the seller in the very near future
4. The real estate market for the “soon to retire” market remains strong
5. Home prices in the Coachella Valley remain the second lowest home prices in California.

The “Bottom Line”:

Now is the time to lock in your place in paradise!

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tom wrote this at 11:23 am on October 12, 2006:

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The La Quinta Sun, the Desert Sun’s new weekly local guide on La Quinta, came out today with a newly updated map of commercial development going on at La Quinta’s Hwy 111 corridor. The valley is growing so fast, that change is noticeable on a daily basis.

To see the map, click here.

To read the article, click here.

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