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.

allunitssold7-14

golfunitssold7-14

All-PSQFT7-14

Golf-PSqFt7-14

 

 

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.

Bubble7-14

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

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.

allunitssold6-14

golfunitssold6-14

All-PSQFT6-14

Golf-PSqFt6-14

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.

Bubble6-14

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

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.allunitssold5-14

 

golfunitssold5-14

 

All-PSQFT5-14

 

Golf-PSqFt5-14

 

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.

Bubble5-14

 

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

* 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

 

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.

allunitssold4-14

 

golfunitssold4-14

 

All-PSQFT4-14

 

Golf-PSqFt4-14

 

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.

Bubble4-14

 

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

* 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
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

 

 

 

 

 

 

 

 

 

 

 

 

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:
:MoSup11-13         MoSup12-13

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

allunitssold12-13

golfunitssold12-13

All-PSQFT12-13

Golf-PSqFt12-13

Bubble12-13




 

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.

LaQuintaHomesSold 2000-2013

Forclosues

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

 

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.

[maxbutton id=”1″ text=”Download Market Report Now” url=”http://www.gallaudet.com/blog/wp-content/uploads/2013/11/MarketWatch_Monthly_SEPT_E-3.pdf”]

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.

 

allunitssold5-13

 

golfunitssold5-13

 

 

All-PSQFT5-13

 

Golf-PSqFt5-13

 

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

* 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

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.

All-PSQFT3-13

 

 

 

 

 

Golf-PSqFt3-13

 

 

 

 

 

 

 

 

 

 

Bubble3-13

 

 

 

 

 

 

 

 

 

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

* 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

 

 

January & February, 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 February, 2013.

allunitssold2-13

 

golfunitssold2-13

 

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.
Looking at the numbers, 2012 was a good year for real estate in La Quinta and 2013 looks like it will be an even better year. The first quarter of 2013 will be the strongest quarter since 2008.
I’m sure you are aware that the news media is hyping the “rise of the median home prices”. That is a fact. The median price is rising but there is more to the story. The “Median” price is the middle price in the list of prices. That list of prices contains both “normal” sales and “distressed” sales (short sales and foreclosures) which sell at “distressed” (lower) prices. If the number of “distressed” sales dimishes, the median price will move higher up the list but that does not necessarily mean that the prices at the high end of the list have changed at all. The good news is that prices in general have begun to follow the “normal” 4.5% real estate rate of appreciation.

Bubble2-2012

 

The difference in the “Normal” line and the “Actual” line after 2010 is in part due to the distressed sales keeping the overall numbers lower. The drop in the prices in 2011 can be attributed to the number of distressed property sales rising to over 50% of all sales. Prior to 2009, “Distressed” sales accounted for less then 5% of all sales. As the “Distressed” sales become a significant part of the number of sales, they also hold the value of “Normal” sales back because they are used as comparable’s during negotiations and appraisals.

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

239

98

* 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

Sales Analysis through December 2012

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, 2012.

 

 

 

 

 

 

 
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.

Looking at the numbers, 2012 was a good year for real estate in La Quinta. With sales of 1,530 units, 2012 was the second strongest year for unit sales since 2005 (1,563 units sold). 2004 was the best year ever for unit sales in the City of La Quinta at 1,938 units sold.

 

 

 

 

 

 

 
Golf Course home sales in La Quinta.

Like the sales numbers for the entire city, the sales-volume numbers (587) in the higher-end market (which contains many of the golf properties in the chart above) were also the best since 2004 (785).

The number of “distressed” (bank owned and “Short Sale”) properties has decreased from 46.0% of total sales in 2011 to 31.9% in 2012. This is especially impressive when the total number of sales in 2012 increased by 5.8% over total sales in 2011. Here are the sales figures from 2006 through 2012 showing what an important factor distressed property sales played in overall La Quinta sales picture:

Year:

2006

2007

2008

2009

2010

2011

2012

Total Sales

1,118

942

1,076

1,202

1,360

1,446

1,530

Distressed Sales

5

40

366

605

623

665

488

Distressed/Total

0.45%

4.25%

34.01%

50.33%

45.81%

45.99%

31.90%

From 0.45% of sales in 2006 to 50.33% in 2009, you can easily see why “distressed” sales have played such a big part of home sales pricing. Recently, the Desert Sun newspaper had a headline stating that the median home price had risen 31%. This is not hard to accept when you replace a significant number of lower priced distressed sales with higher priced regular sales. Lessening the impact of the distressed sales is good for everyone.

Here is a chart of the number of home sales in the City of La Quinta since 2000.

 

 

 

 

 

 

 
We are gradually coming back from the low in 2007 on a steady upward trend. The outlook seems to be improving as we are seeing the return of developers and a significant increase in new construction.

The famous bubble.

A lot of our current economic troubles have been blamed on the “Real Estate Bubble” which “popped” in 2006.
In 2005, an article published by the National Association of Realtors spoke about the “bubble” and how it represented a lack of value in the inflated home prices of the time and that people would soon realize that the inflated home prices did not represent the actual value of the home and the bubble would implode. The article went on the say that for as long as the NAR had been recording it, Real Estate appreciation had risen at an annual rate of 4.5% and that when the bubble broke, prices would come back down to meet that normal appreciation line.

 

 

 

 

 

 

 
Price per square foot of home sold from 2000 to 2012 in the City of La Quinta.

This chart shows the “Bubble” as sale prices departed from the normal line in 2002 and returned to it in 2009 as predicted by the NAR. What the NAR had not predicted was the number of distressed properties that would come into the market place and the significant affect they would have on the sale price of regular sales. If the number of distressed properties continues to shrink, we should see the actual price line come up to the “normal” appreciation line in the next year or two or maybe we need to establish a new “normal” line.

Overall, we continue to see more positive signs in the market place and the media continues to be encouraging. We are anticipating a good year in 2013. The mortgage industry is the best it’s been for conventional loans and even the “jumbo” loans, are becoming easier to get..

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 1,530 587

* 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