August 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 August, 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 La Quinta in August decreased overall by 6.7% while the number of Escrows for the more expensive Golf Properties decreased by 10.1%. This being the second “summer” month, the downturn is expected and sales most likely will continue to decline through 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 La Quinta in August showed a 9.8% increase over July making August the best August in the past 4 years. 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 say 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 10.5% in August over July. The average price per square foot decreased 8.9% in August over July. This shows the affect of the short sales and bank owned “deals” that made up a lot of those sales.
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 August 31, there were 4,956 active listings (down 2.8% from July), 2,341 units in escrow (down 2.0% from July) totaling 7,297 units (down 2.6% from July) available for sale which makes 32.08% of the total in Escrow (Up 0.17% from July) – 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 1,014 376

* 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