November 2010 Price Report

Here are the latest sales numbers for all homes sold within the City of La Quinta as well as all Golf Course homes in La Quinta through November, 2010.
City of La Quinta home sales by month since January 2008*

The blue lines represent 2008 data, the orange lines represent 2009 data and the magenta lines represent 2010 data.

With the arrival of the 2010-2011 season and the passing of the elections, we have noticed a marked improvement in consumer confidence and the seasonal increase of the La Quinta home sales for November after the annual slump in October. Sales showed a marked increase in November over October and has surpassed the same months in 2008 and 2009.  Open escrows in November rose 7.7% which is obviously a good thing and lets us look forward to a strong December.  There has been, in my humble opinion, a dramatic change in Consumer confidence.   Through the summer, buyers have looked at homes and left the impression that they would return when times got better.  Now they seem to be willing to make a move and in fact are making moves.  Prices seem to have stabilized in the under $1,000,000 market and although jumbo loans are not any easier to get, the activity in the $1,000,000 and above market has improved and we are putting some of the higher priced homes under contract. The general attitude of the people we talk to at open houses is that the market has hit the bottom and that is backed up by current prices versus historical appreciation.

Golf Course home sales in La Quinta

The sales-volume numbers in the higher-end market (which contains many of the golf properties in the chart above) have improved even more than the total with the arrival of the season. The average price per square foot rose 38.6% in November over October’s 14% decline. Historically, October has been a “down” month but this November has showed a 56.3% increase in the average price of the Golf Course home sold in October.

Overall, we are still seeing positive signs in the market place.  There has been a steady increase in activity since Labor Day and more noticibly since the biginning of November. The mortgage industry is the best it’s ever been for conventional loans but the “jumbo” loans, although becomming more available, continue to be a stumbling block in the higher end market.

La Quinta Inventory:
On November 30, there were 7,059 active listings, 2,288 units in escrow totalling 9,347 units available for sale which makes 24.5% of the total in Escrow.

If buying property is something on your list (especially golf property), why not take advantage of the incredible prices and seller incentives now, when sellers will work with you, instead of in the future, when the demand starts to catch up with the supply? Especially if you’re buying and planning to hold for 5+ years.

Here are some yearly sales figures (units) for the City of La Quinta from 2002:

Year All LQ Golf Course
2002 1,354 259
2003 1,565 652
2004 1,931 813
2005 1,553 657
2006 1,098 491
2007 935 447
2008 1,063 416
2009 1,155 418
2010 YTD 1,248 496 (Nov)