Business of Real Estate – Page 2 – Gallaudet Properties

November 3, 2014

La Quinta Real Estate Sales Analysis (Summer, 2014)

The City of La Quinta, year-to-date unit sales for 2014 are 18% lower than 2013. As you can see from the graph below, each month in 2014 has fallen behind the previous year. The second quarter of 2014 was the worst with 28% less sales than the second quarter of 2013. During 2014, we have had a very tight inventory of homes for sale which is a major contributor to the decrease in sales this year.

The summer of 2014, (3rd quarter – July, August and September), was the worst summer quarter for La Quinta since 2007. The quarter that just ended recorded La Quinta sales of 266 homes, a drop of 15% over the same quarter in 2013 (314). Just to keep this in perspective, 2013 was the best year since the “bubble” burst in 2005.

What we have noticed here in the Coachella Valley was that during the late fall of 2013 and the first quarter of 2014 there was a noticeable increase in the number of American buyers and a decrease in Canadian buyers. The number of buyers at that time, coupled with a very low inventory, caused prices to begin to rise substantially in many developments. Toward the beginning of the second quarter, there seemed to be a change in buyer attitude and prices leveled off and even declined slightly. This malaise which has been caused by the tight inventory, and the investors not liking the increase in pricing, has malingered for the rest of the year. We are hoping that after the election and as we enter the selling season, we will see more inventory and then sales again pick up.

This is a graph of the Real Estate “Bubble”. The red line represents the normal historical Real Estate appreciation rate of 4.5%
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 – 1,537 – 567
2014 – 1,000 – 474
YTD (Sept)

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

Source: DesertAreaMLS

September 24, 2014

July, 2014 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 July, 2014.

The inventory of “Active Listings” in the Coachella Valley decreased again from June to May which is usual as we enter the summer season. The number of Sold units decreased over the same period last year (July, 2013) which is the trend for the summer months. The main reason is that the inventory has decreased in June and July. The pace at which real estate prices increased in the October to January period seemed to slow to a more normal rate in February through July. The price rise slowed as did the home sales. The activity in the million dollar+ market seems to have picked up but prices have not increased as much as they have for the under a million dollar homes. The national real estate market been a little fluky over a leveling off in the late spring where the national sales actually dropped in August. Our market in the Desert usually slows during our hot summer months and the blogs and statisticians are still predicting a strong national 2015 market so we are looking forward to a great 2015 season.

Below is the chart depicting the “bubble” in sales versus the historical 4.5% annual appreciation. As predicted by the National Association of Realtors back in 2005. It will be interesting to see how close the actual sales prices stay to the “Normal Appreciation” line in the coming months. One of the reasons for the recent price increases is that we have seen more American buyers in the market than in the past few years which is a sign that our economic outlook seems to be improving.

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 – 1,537 – 567
2014 – 924 – 450
YTD
* 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

August 22, 2014

June, 2014 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 June, 2014.

The inventory of “Active Listings” in the Coachella Valley decreased again from May to June which is usual as we enter the summer season. The number of Sold units decreased significantly over the same period last year (June, 2013) which was the best month since 2008. The main reason is that the inventory has decreased in May and June. The pace at which real estate prices increased in the October to January period seemed to slow to a more normal rate in February through June. The price rise slowed as did the home sales. The activity in the million dollar+ market seems to have picked up but prices have not increased as much as they have for the under a million homes. The national real estate market continues to improve over a leveling off in the late spring. This is good news as the Desert usually follows somewhat behind the national market so we are looking forward to a great 2015 season.

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 1,537 567
2014YTD 739 380

* 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

July 17, 2014

May, 2014 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, 2014.

The inventory of “Active Listings” in the Coachella Valley decreased from April to May which is usual as we approach the summer season. The number of Sold units decreased significantly over the same period last year (May, 2013) which was the best month since 2008. The main reason is that the inventory has decreased in April and May. The pace at which real estate prices increased in the October to January period seemed to slow to a more normal rate in February through May. The price rise slowed as did the home sales. The activity in the million dollar+ market seems to have picked up but prices have not increased as much as they have for the under a million homes.

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	1537	567
2014 YTD	650	335

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

June 9, 2014

Spring 2014 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 throughApril, 2014.

The inventory of “Active Listings” in the Coachella Valley increased slightly from January through March but then slowed slightly in April as we approached the end of the “season”. The number of Sold units rose even more making the real estate market in La Quinta move to a normal market status of a 6 month supply. One of the reasons was that although the sales increase in February was lower than expected, the increase in March was higher than expected and fell off slightly in April. The pace at which real estate prices increased in the October to January period seemed to slow to a more normal rate in February and March. The price rise slowed while the home sales increased. The activity in the million dollar+ market seems to have picked up but prices have not increased as much as they have for the under a million homes.

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	1537	567
2014 YTD	514	262

For more information about the Coachella Valley Real Estate market, Please call us at (760) 203-2621!
Source: DesertAreaMLS
CATEGORIES: BUSINESS OF REAL ESTATE, FORECLOSURES, LA QUINTA COMMUNITIES, LA QUINTA HOME FOR SALE, MONTHLY SALES REPORTS, PRICE ANALYSIS, SHORTSALES
TAGS: CHRISTIES INTERNATIONAL REAL ESTATE, 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

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

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.

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