November 2011 Real Estate Sales Analysis

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, 2011.

Unit sales in La Quinta, California
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 November again increased over the previous month by 14.9% while the number of escrows for the more expensive Golf Properties increased by 52.4% over the previous month. This is expected as we start to see activity pick up as we move into our “season”.

The number of unit sales within the City has remained strong although the 13.7% increase over October did not surpass the sales of November, 2010. YTD unit sales in 2011 have been the strongest since 2008.

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 prices in the entire market.

Closed home sales in La Quinta in October showed a 13.7% increase over October. This increase is attributed to the beginning of our “season”.

The slightly increasing mortgage interest rates may add some urgency to our industry. 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.

Golf Course property sales in La Quinta, California
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) increased 33.3% in November over October. The average price per square foot increased 30.4% in November over October. This shows the affect of fewer short sales and bank owned “deals” that made up a lot of the summer sales.

Overall, we are still seeing positive signs in the market place. Although not earth shaking, unit sales through the “Summer” months have been stronger than any “summer” since 2008 as has been the year.

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 November 30, there were 5,517 active listings (up 4.0% from October), 2,402 units were in escrow (up 5.6% from October) totaling 7,919 units (up 4.5% from October) available for sale which makes 30.33% of the total in Escrow (up 1.0% from October) –This trend is an indicator of homes coming on the market for the  season ahead.

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 1,308 468

* 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

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