The blue lines represent 2008 data, the orange lines represent 2009 data magenta lines
represent 2010, green lines represent 2011 data and the purple lines represent 2012 data.
Open escrows in La Quinta on June 30th decreased over May by 15.9%. The decrease in escrows is due to the onslought of heat as we move into the summer months. As you can see from the graph, this is a normal trend. The Coachella Valley Inventory has decreased by 7.0% over the past month which is a great sign for our economy. The number of “Active Listings” on the Coachella Valley MLS has dropped 42.4% from January 2011 and 55.9% from January, 2010. The “Active” inventory of resale homes in the Citrus community, for instance, is down to 2.4% where 10% is considered normal for a gated community. The number of escrows at the end of June for the more expensive Golf Properties decreased by 24.6% over May. The valley’s inventory continues to shrink increasing the demand. The increased demand helps stablize the market pricing over the lower priced short sales and bank owned properties. The unsold inventory continues to decline, prices in some areas, like the La Quinta Cove, continue to increase slowly.
The number of unit sales within the city decreased in June by 7.5% over May which may be attributed to declining inventory but we expect that sales will continue to be near or higher than past summers as sales are continuing to pick up in the bigger metro markets allowing people to sell there current homes and purchase a retirement property here in the desert.
The number of “short sales” and “bank owned” properties being offered at reduced prices continue to be tapering off. There were only 22 Bank owned homes sold in La Quinta in June. Most lenders seem to be dealing more efficiently with the inventory of distressed properties although short sales and/or foreclosures can still be a challenge and they are still affecting the prices in the entire market as they are included as comparable homes by the buyers.
Golf Course home sales in La Quinta.
Like the total sales number for the City, the sales-volume numbers in the higher-end market (which contains many of the golf properties in the chart above) decreased 12.3% in June over May.
Overall, we continue to see more positive signs in the market place and the media continues to be encouraging. We are anticipating a good finish for the rest of 2012. The mortgage industry is the best it’s been for conventional loans and even the “jumbo” loans, are becoming easier to get.. Coachella Valley Inventory: On June, 30, there were 3,393 active listings (down 10.1% from May), 2,575 units were in escrow (down 13.2% from May) totaling 5,968 units (Down 11.5% from May) available for sale which makes 43.15% of the total inventory in escrow (down 2.0% from May). 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|
* 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.