galla99 – Page 8 – Gallaudet Properties

January 23, 2014

December, 2013 Sales Ananlysis

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 from January, 2008 through December, 2013.

The current inventory of “Active Listings” remains tight. The Coachella Valley has transitioned from a buyers market to a sellers market but not all buyers seem to relize this :-). Most of the popular segments of the market have already moved to the sellers favor. The point at which the market changes from buyer to seller is determined by the months supply of homes for sale.
According to the National Association of Realtors (NAR) the market is defined by the number of months supply of homes currently for sale. The dividing line between a Buyers / Sellers market is 6 months supply. Months Supply is determined by dividing the total number of sales in the last 6 month period by 6 to get the average number of sales per month and dividing that number into the current number of active listings.
For example: If the total homes sold in the past 6 months = 18 then 18/6 = 3 sales in the average month. If the current active “for sale” inventory was 21 then 21/3(Avg Mo Sales) = 7 Months Supply which would qualify as a weak buyers market. 6 months supply is considered a “Normal” market and anything less than 6 months supply is defined as a sellers market.

Here is a breakdown of current months supply in the City of La Quinta:

November, 2013: December 2013:
:

Here are some historical charts showing the present market and how it compares over the last five years and beyond.

The pink line represents a 4.5% rate of appreciation, which is the historical rate of appreciation (going back to 1968) according to the National Association of Realtors.

Here are some yearly sales figures (units) for the City of La Quinta from 2002:
Year

Year	All	LQ Golf Course
2002	1,356	259
2003	1,572	640
2004	1,938	785
2005	1,563	638
2006	1,118	483
2007	942	444
2008	1,076	405
2009	1,202	409
2010	1,360	518
2011	1,446	510
2012	1,532	587
2013	1,537	657

* 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.

For more information about the Coachella Valley Real Estate market, Please call us at (760) 203-2621!

Source: DesertAreaMLS

January 7, 2014

Holiday Home Sales in La Quinta

The holiday season has been an incredibly busy time for home sales in La Quinta! Who would have thought? Normally the week before Christmas and through to the week after New Year’s Eve is an extremely slow time for home sales in the Desert. It is a busy time for people to be with families and normally not to be focuing on home purchasing. However, 2013 has proven to have a life of it’s own during this time, and specifically in La Quinta. We have been so busy at Gallaudet Properties that we had trouble being with family! Why is this the case? I have a couple of ideas:

Buyers are noticing the low inventory and the fact that it doesn’t seem to be growing.
New homes that are coming on the market are coming on at higher prices than even two months ago, and they are selling at higher prices. Of the last 3 homes that we sold in December, we had bidding wars and they all sold at or above list price.
We do not see many distressed homes (short sales or bank owned homes) coming on the market anymore – in the past, these may have kept buyers on the fence waiting for the “next deal” if they happened to miss the deal in front of them.
Interest rates are increasing. In my opinion, that shouldn’t have a huge effect because rates are still low, but psycologically, it does have an impact on the buyers.
Effective January 1, FHA loans have lowered their cap to $355,350 in Riverside County. Buyers wanted to get into the market before that took place.
Less inventory and upward price pressure has created more of a seller’s market which has increased seller’s confidence levels and a restored a more positive outlook that their home will sell and that they don’t necessarily need to consider all offers – just the good ones.

The above points, in addition to the fact that the weather in the Desert has been absolutely perfect with blue skies and temperatures in the 70s and 80s, have kept the home sales strong through the holiday season of 2013. Very small inventory levels continue to be our reality here – there is just not a lot for sale relatively speaking. If you want a great home where the sun is always shining give us a call today and let us start the process of finding your dream home. It might take a little while, depending on your needs, so it’s a good idea to start the process now.

December 19, 2013

Factors to consider when buying a home in the Coachella Valley.

When I first start working with clients interested in buying a home in the Coachella Valley (The “California Desert”), we initially discuss their requirements. During this consultation, we also focus on important considerations when buying a home here, as the Coachella Valley is a large valley with many different types of communities and activities. The perfect spot is out there for everyone looking, but we have to first define “perfect”! Having helped many clients find the home that fits their needs, I feel that the following items are essential elements to consider:

Lifestyle. What activities are you interested in?
Location.
Price range.
Type of security in the community: Gated, Guard-gated or non-gated?
Golf course vs. non-golf course and why? Do you play golf or would you just like the views?
What is the ideal size and where would you like that space utilized? (Do you need a formal dining room, or would you like additional space in a great-room setup?) Do you like large bedrooms and do you need an office?
Seasonal or full time home?

When discussing these 7 factors, quite a few of them run together. For example, the location that you choose will depend on the price you want to spend. If you have your heart set on being directly on a golf course, there is a price premium that comes along with that. (Which also differs depending on your location within the golf course.)

In most cases, our clients are looking for a community that matches their lifestyle needs, which often means a home on a golf course. A golf-course home will most likely be in a gated community (there are a very small number of exceptions) and the monthly home owners dues (HOA dues) will be an expense that should be considered. HOA dues vary drastically between each community. In some cases, such as in PGA West, the more you pay, the more features are covered, like landscaping maintenance, exterior paint, and some insurances. However, this is not the case for every community. Some communities add a mandatory “social” membership to the monthly costs (Mountain View and Rancho La Quinta are examples of this). That may bring additional value to you depending on your lifestyle needs. In addition, more often than not, the HOA dues in the western half of the valley, in cities such as Rancho Mirage, Palm Desert, and Indian Wells, are higher than the dues in the newer, eastern part of the valley, like La Quinta.

There is also a wide price range in the different golf course communities within each city. Some golf communities have many homes under $1,000,000, while others have only homes that start above $1,000,000. When deciding on the city and community that you wish to settle in, the price is always a huge factor – and how your price point compares to the median sale price of that community. The age of the home in some of the cities can play a large role on price too. So, if you find a home with a price that seems unbelievable, it could be that the home needs a great deal of updating and improvements.

When discussing location in the Coachella Valley, most buyers will want to know which way the outside living area faces, i.e. north, south, east, or west. The orientation of your outdoor living space affects the amount of sun you will receive as well as your views and this, too, has a huge impact on the price of the home. Each buyer has his/her own needs regarding the amount of sun they want, and these needs should be discussed in detail with your Realtor so that they can locate proper homes for you.

For more information on any of these considerations, please contact me. I would love to discuss them in much more detail with you.

In the meantime, To help you with more information regarding golf course communities, I’ve included a link to our Golf Resource Guide below which outlines the many golf courses and the price range of homes within each community, as well as the price of that community’s golf membership deposit and dues. (It has some bonus information like restaurant information and nearby attractions too!) Please let us know what you think of it!

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December 6, 2013

October, 2013 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 from January, 2008 through October, 2013.

The current inventory of “Active Listings” remains tight. The Coachella Valley is currently transitioning from a buyers market to a sellers market. Some segments of the market have already moved to the sellers favor. The point at which the market changes from buyer to seller is determined by the months supply of homes for sale.

According to the National Association of Realtors (NAR) the market is defined by the number of months supply of homes currently for sale. The dividing line between a Buyers / Sellers market is 6 months supply. Months Supply is determined by dividing the total number of sales in the last 6 month period by 6 to get the average number of sales per month and dividing that number into the current number of active listings.

For example: If the total homes sold in the past 6 months = 18 then 18/6 = 3 sales in the average month. If the current active “for sale” inventory was 21 then 21/3(Avg Mo Sales) = 7 Months Supply which would qualify as a weak buyers market. 6 months supply is considered a “Normal” market and anything less than 6 months supply is defined as a sellers market.

Here is a breakdown of current months supply in the City of La Quinta:

Another measure of inventory is the number of active listings as a percent of total number of homes in a gated community. According to the NAR, a gated community normally has 10% of the homes available for resale. Here are the stats for 3 La Quinta communities:

Mountain View CC: 426 homes, 22 for resale – 5%
Rancho La Quinta CC: 960 homes, 31 for resale – 3%
Citrus Club: 576 homes, 10 for resale – 1.7%

Here are some historical charts showing the present market and how it compares over the last five years and beyond.

The pink line represents a 4.5% rate of appreciation, which is the historical rate of appreciation (going back to 1968) according to the National Association of Realtors.
Here are some yearly sales figures (units) for the City of La Quinta from 2002:

Year	All	LQ Golf Course
2002	1,356	259
2003	1,572	640
2004	1,938	785
2005	1,563	638
2006	1,118	483
2007	942	444
2008	1,076	405
2009	1,202	409
2010	1,360	518
2011	1,446	510
2012	1,532	587
2013 YTD	1,323	561

Source: DesertAreaMLS

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November 3, 2013

September’s Real Estate Report for the Desert Cities

As we are all aware, interest rates in the US rose in July & August 2013 and there has been much speculation on why that happened, and whether it is just the beginning of much higher rates to come. This article, posted in the Market Watch Report for the month of September, offers some good analysis on what really happened and what to expect in the coming months.

In addition, the report has some very interesting statistics on home prices, the number of homes for sale, and sales of homes in the Desert in 2013 as compared to 2012. It breaks the sales out according to specific cities within the Desert. There are quite a few charts with different sets of statistics on each city. This information is very thorough and should help give you an understanding of what is currently occurring in the real estate market place in our Desert.

Please contact me or leave comments below with any questions/comments you have about our local market. I look forward to hearing from you.

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October 22, 2013

La Quinta Is Ready For The Season!

This is one of my favorite times of year in The Desert. All the grasses have been changed from the summer seeding to the winter and they are now coming up green and beautiful. The winter flowers are being planted, everything is looking spectacular, and the weather is perfect. Here in La Quinta, the inventory for homes for sale is still very low. The prices have started to rise, but there are still great values compared to anywhere else this beautiful! What a great time to check it out before everyone else arrives!

July 23, 2013

Mid-2013 La Quinta Real Estate Community Comparison

Here’s a look at active listing numbers and sales (from the past 6 months) in the 7 golf communities we track in South La Quinta.

Name	Active Listings		Sold Listings (Past 6 Mos.)			Total # Homes
	# Homes	Price Range	# Homes	Price Range	Avg. $/SQFT
The Citrus	6	$595,000 – $899,000	26	$545,000 – $1,525,000	$238.48	519
The Hideaway	32	$1,695,000 – $6,950,000	18	$1,075,000 – $4,550,000	$477.84	248
Mountain View	17	$424,000 – $1,699,000	14	$350,000 – $1,200,000	$251.26	451
Rancho La Quinta	31	$419,000 – $1,399,000	43	$387,000 – $1,450,000	$263.36	979
The Quarry	6	$799,500 – $4,995,000	2	$1,750,000 – $2,037,500	$393.09	42
The Tradition	26	$1,495,000 – $7,995,000	12	$1,250,000 – $3,450,000	$460.51	215
PGA West	94	$159,000 – $1,795,000	154	$207,500 – $1,997,500	$212.00	2,941

July 12, 2013

April & May, 2013 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 from January, 2008 through May, 2013.

We continue to have the same “new” problem, a lack of listings to sell. Even the summer months are busier than years past. Here is an idea of how tight inventory is. Normally a gated community has 10% of the homes available for resale. Here are the stats for 3 La Quinta communities:

Mountain View CC: 426 homes, 22 for resale – 5%
Rancho La Quinta CC: 960 homes, 31 for resale – 3%
Citrus Club: 576 homes, 6 for resale – 1%

Sales volume and price/sqft numbers show upward movement in the months of April and May 2013 compared to the same months in 2012. It will be interesting to see the numbers in the coming summer months as well as into the next season. Will the higher mortgage rates or any other economic factors have adverse effects on turning this positive movement into a real trend for 2013?

Here are some charts showing the present market.

Bubble5-13
The pink line represents a 4.5% rate of appreciation, which is the historical rate of appreciation (going back to 1968) according to the National Association of Realtors.

Here are some yearly sales figures (units) for the City of La Quinta from 2002:

Year	All	LQ Golf Course
2002	1,356	259
2003	1,572	640
2004	1,938	785
2005	1,563	638
2006	1,118	483
2007	942	444
2008	1,076	405
2009	1,202	409
2010	1,360	518
2011	1,446	510
2012	1,532	587
2013 YTD	762	335

Source: DesertAreaMLS

July 9, 2013

Hot Summer & Low Inventory = Sales & Prices Rising!

Who would have thought that during these hot (115 degrees +) summer days we would still be having sales in the Desert? But that is exactly what is happening. The inventory has never been lower, so buyers are still coming out to find their Desert home while there might still be one available. And if one goes on the market now, it is being sold quickly. In addition, the prices are starting to come up due to this high demand and low inventory, and unfortunately, we are starting to see an upward change in the interest rates as well. One of the reasons for this rate increase is the fact that there has been speculation that the Fed may begin to taper its Bond purchase program known as Quantitative Easing. That is the Fed’s Bond purchase program that has helped Bonds and home loan rates remain attractive. Currently the interest rates are still historically low in the 4% range, but the fact that they have begun to rise, and could continue to go higher, is a concern to potential buyers. For all these reasons, it appears that now is a great time to grim and bear it—–come to the Desert even though the temperatures are not totally comfortable, and find that Desert Home you have been looking for while it is still available and affordable!

May 24, 2013

MARCH, 2013 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 from January, 2008 through March, 2013.

allunitssold3-13

golfunitssold3-13

The blue lines represent 2008 data, the orange lines represent 2009 data magenta lines represent 2010, green lines represent 2011 data, purple lines represent 2012 data and the pink lines represent 2013 data.

2013 is turning out to be one of the best years we have enjoyed since 2008. As Realtors, we are faced with a new problem that we haven’t seen in years; a lack of listings to sell. For the last few years, we struggled to get buyers for our listings, now the market has come around 180 degrees. now we are up late at night trying to figure out where we can get quality listings for our buyers.

In recent blogs, I have been mentioning about how, although it is a fact that the Median price of homes is going up, the price per square foot of home has not increased as dramatically. Now we are beginning to see a slight upward movement in the mid priced homes ($500,000 – $800,000) but that trend has not yet affected the higher priced homes. This trend is also the effect or the reduced number of distressed property sales that pull everything down.
I have also included some other charts of interest.

Here are some yearly sales figures (units) for the City of La Quinta from 2002:

Year	All	LQ Golf Course
2002	1,356	259
2003	1,572	640
2004	1,938	785
2005	1,563	638
2006	1,118	483
2007	942	444
2008	1,076	405
2009	1,202	409
2010	1,360	518
2011	1,446	510
2012	1,532	587
2013 YTD	398	170

Source: DesertAreaMLS