October 2019
*CLICK HERE to view my entire 2019 3rd Quarter Report including STATISTICAL REPORTS, or view the report by clicking “View PDF Document” located to the right of this page under my photo.
As we move towards the end of the year, 2019 has proven to be solid and stable amid rumors and talk of a slowing real estate market. Interest rates and trade wars are the latest fears among consumers. Despite the skeptics, interest rates remain low and there are positive signs the Coachella Valley is not heading for doom and gloom and we are remaining stable. According to the September “Desert Housing Report”, published by the local boards of Realtors many cities show positive gains in median prices in both the attached and detached home markets. 7 of the 11 Coachella Valley cities show positive gains in the detached home market and Palm Springs remains the strongest with a 10.3% price gain over the last 12 months. City of Coachella, Desert Hot Springs, Indian Wells, Cathedral City, Palm Desert and La Quinta are all showing positive average price gains, demonstrating anywhere from a 2.7% increase to a 9.1% increase. Although most of the cities are still down from their all-time high average price, they are continuing to gain momentum. With elevated prices in Palm Springs, this historically will drive sales to other desert cities where buyers see more value for their housing dollars.
We continue to see low levels of inventory throughout the Coachella Valley. On October 1st, there were 2,736 units for sale throughout the valley. This is the lowest inventory we have seen in the last 10 years. While low inventory creates more of a challenge for buyers to find homes, it also can help drive home prices up due to demand. On the “Country Club Homes Sales Report”, we track 19 different country clubs, 7 of which are luxury and 12 other well-known communities. Of the 12 clubs, 8 show increases in price per square foot compared to 3rd quarter 2018 and of the 7 luxury, 4 clubs showed an average price per square foot increase.
While reviewing the “Country Club Home Sales Price Change and Appreciation”, you will notice 14 out of the 19 golf course communities tracked are on target to sell as many if not more homes this year than in 2018. Clubs such as Indian Ridge and Rancho La Quinta have already exceeded 80% of their total sales compared to 2018. Average sales price in 17 of the 19 clubs tracked have increased from 2018 and many even increased compared to 2017. Mission Hills showed the largest increase in average sale price, up 34.6% from 2018. Ironwood is second in line with an average price increase of 19.4%. The higher end clubs, all except one, are above 75% of their sales from 2018, showing a steady rise in the luxury market. While sales in some of these areas were low in 2018, this increase shows the market is improving in the luxury properties market. In fact, according to the “Luxury Home Market in the Desert Report”, there has been a consistent increase in home sales at $1 million and above since 2012.
Indian Ridge has 40 active homes on the market and finished the 3rd quarter with 16 home sales, 10 sold in the HOA and 6 sold in the PUD. While this is 3 less homes sold compared to 3rd quarter 2018, total sales are still up for 2019. Currently Indian Ridge has sold 69 homes vs 66 homes in 2018. The HOA continues to show strong sales due to affordability factor and has already reached 89% of the total sales for 2018. Year to date the HOA is in line to sell more homes than in 2018 due to the demand for homes priced between $500,000 – $800,000. Out of the 16 homes sold in the 3rd quarter of 2019, 10 were sold under $800,000 and only 1 home over a million dollars sold.
The number of homes sold in the PUD year to date have dropped slightly since 2018. Currently, 29 homes sold in the PUD compared to 31 homes sold at this time in 2018. However, the average price per square foot is up 18.6% in the PUD. The average sales price for Indian Ridge, including the HOA and PUD, as a whole is the highest it has been since 2014, closing out at $794,038. For Indian Ridge Country Club’s fiscal year October 1, 2018 through September 30, 2019, there were 88 homes sales. For the fiscal period of October 1 2017 through September 30 2018, Indian Ridge Country Club sold 86 homes.
Year after year data from the “Indian Ridge Country Club Sales Activity Report” indicates we are stable and far from the numbers we saw during the housing market crash in 2008-2010. Our prediction is that 2020 will continue with the same consistent pattern, maybe seeing a slight drop in the 4th quarter due to an election period. While many cities across the US saw a huge hike in prices these last couple of years, a correction is happening in these metropolitan areas. This does not mean a crash like in 2008. Remember, the crash happened due to forces that no longer exist and those factors can now be predicted and addressed before they happen. In fact, a price correction can bring more buyers to the table, especially millennials who made up 50% of the mortgage business in 2019. Constrained home supply, persistent demand, low unemployment and steady economic growth can help stabilize the real estate market in 2020.
Our on-site sales team is always grateful for the opportunity to work within this outstanding community. Not only are we proud of our successes, but to see this fantastic club continue to grow and evolve is extremely rewarding. We are always striving to enhance the service we provide and we make that possible with the dedication of our team members and what we all bring to the table. Our group is fully dedicated to the success of our clients and constantly collaborating ideas with one another to enhance our results. We have a positional advantage over individual agents, being able to be in multiple places at one time. Our office realizes this business is not a 50-yard dash, but a marathon of nurturing and investing in relationships. We are optimistic to enter into our final quarter of 2019 and look forward to what 2020 will bring.
Please stop by our office with any questions you may have or feel free to give us a call. We are here 7 days a week, 9am-5pm. You are always welcome!
Sincerely,
Diane Williams Team ~ Diane R. Baxter, Associate Broker/Executive Luxury Director, Allison Renz, Heather Wong, Terrie Pena, Frank Montiforte, Kristeen Kidd, and Laura Flannery
CalDRE #01364828