December 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 December, 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.

Although the December numbers are down slightly, we continue to see a marked improvement in consumer confidence and an increase in interest in the “over $1 million” market in December after very little interest in that segment over the past year. Open escrows in December declined 5.1% which is not too surprising with the Holidays and our books indicate a strong January in the making.  There has been, in my humble opinion, a dramatic change in consumer confidence for the better.  Now buyers seem to be willing to make a move and in fact are making moves.  Closings in December and January will be two of the best months that Gallaudet Properties has ever had! Prices seem to have stabilized and, now that the “Capital Gains” tax issue (“Bush tax cuts”) is behind us for the next 2 years 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.  Also, the slight increase in mortgage interest rates may have added some urgency to our industry.

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 declined in December which is typical of the Holiday months of November and December. The average price per square foot declined 17.9% in December over November’s 38.6% increase.  Other than last year, December has been a little weak do to the holidays that devert attention away from our industry.

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 beginning 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 December 31, there were 6,857 active listings, 2,136 units in escrow totalling 8,993 units available for sale which makes 23.75% 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 1,355 530