July 2011 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 July, 2011.

City of La Quinta home sales by month since January, 2008*

The blue lines represent 2008 data, the orange lines represent 2009 data magenta lines represent 2010 and the green lines represent 2011 data.

Open escrows in July decreased overall by 5.7% while the number of Escrows for the more expensive Golf Properties decreased by 1.4%. Since this is the first “summer” month the slight downturn is expected and sales most likely will continue to decline through August and September. The number of “short sales” and “bank owned” properties being offered at reduced prices seem to be remaining at higher levels then in the past and this is affecting the entire market. Remember that although you “may” get a home at a lower price if you wait, the mortgage interest rate will likely be higher so the purchase will wind up costing you more over time.

Closed home sales in July showed a 27.0% decrease over June making July slightly lower than July 2010. Although the general attitude of the majority of people we talk to is that the market has hit the bottom but we are beginning to hear some folks saying they’re going to wait a little longer. The slightly increasing mortgage interest rates may add 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) decreased 27.0% in July. However the average price per square foot increased 7.3% in July over June..

Overall, we are still seeing positive signs in the market place. There has been a steady increase in activity through June. The mortgage industry is the best it’s ever been for conventional loans but the “jumbo” loans, although becoming more available, continue to be a stumbling block in the higher end market. Most lenders seem to be trying to deal more efficiently with the inventory of distressed properties although dealing with a short sale of foreclosure can still be a challenge.

Coachella Valley Inventory:
On July 31, there were 5,099 active listings (down 4.1% from June), 2,390 units in escrow (down 3.9% from June) totaling 7,489 units (down 4.0% from June) available for sale which makes 31.91% of the total in Escrow (Up 0.06% from June) – which means we are working on reducing the supply which will ultimately increase demand and improve the market.
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
2011 YTD 890 341

* Remember that the sales numbers represent “Closed” escrows. Since the average escrow is between 45 and 60 days, the decision to purchase the homes that closed in June was probably made in March to early April.

Source: DesertAreaMLS

Categories: Business of Real Estate, Golf, La Quinta Communities, Monthly Sales Reports, Price Analysis
Tags: City of La Quinta, coachella valley golf, Gallaudet Properties, HK Lane Real Estate, la quinta, la quinta golf, la quinta golf property, la quinta home sales, la quinta real estate, sale report