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 May 2010.
The blue lines represent 2008 data, the orange lines represent 2009 data and the magenta lines represent 2010 data.
The chart above shows monthly sales of homes within the city of La Quinta*.
The sales for La Quinta in May were one shy of April which were the strongest since May, 2006. We continue to notice an improvement in consumer confidence and an increase in buying activity in homes over $700,000, which has been slow over the past 18 months. Personally, our team continues to put non-distressed, “regular” home sales together this year, which has been a welcomed change. Prices have not started to rise, but they seem to be stabilizing as there has not been a significant change since March as buyers are starting to seize the well-priced homes on the market. The general attitude of the people we talk to at open houses is that the market has hit the bottom and that is backed up by current prices versus historical appreciation.
The sales-volume numbers in the higher-end market (which contains many of the golf properties in the chart above) retreated slightly in May but the average price per square foot continued to improve. Sales in May were 3 units lower than April but were still stronger than any previous month since May, 2008. We are hoping this continues through the summer sellling season.
Overall, we are seeing some positive signs in the market place. Although prices have not yet stabilized in the higher end (over $1 million), there are signs of stabilization beginning in the lower market segments. The mortgage industry is still a stumbling block in the higher end market as it seems that unless you can prove that you don’tneed a Jumbo Loan (over $500,000), you can’t get one! The bottom line is that at the beginning of the downturn in 2006, there were over 10,000 homes available for sale in the Coachella Valley – a real glut, currently, that number is down to under 5,800. As the supply dwindles, the market begins to stabilize and people feel more comfortable to get back into the marketplace.
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 YTD 570 253 (May)
* When looking at “sold” data, you have to remember that the numbers are generated on the date that the sale is recorded with the county but that the decision to buy was made about 45 – 60 days earlier.