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Friday, April 17, 2015


Valued Friends & Clients!

As we hit the middle of April here in the California desert, the ANA Inspiration LPGA Golf Championship was held a few weeks ago and the 1st Coachella Festival weekend has come and gone. The 2nd Coachella Fest weekend is coming, followed by Stagecoach. These music festivals create a high amount of traffic in the east valley and bring plenty of media attention. They also have a huge impact on short-term rentals, but not much impact on home sales.

The real estate market above $500,000 was not overly strong in the first quarter this year. There are signs of sales in the mid-priced homes improving in March, but the high-end and luxury market has been below expectations. While there are many factors indicating that more homes should be selling, these factors have not translated into sales. Interest rates remain extremely low & the economy overall appears to be strong. But, the high-end market remains soft.

Closing on homes that sold above $1 Million in the 1st Quarter of 2015 were at 131, compared to 152 last year. Sales above $2 Million were off just a bit, with 27 closings, compared to 28 last year. But, above $5 Million, there was only 1 closing at $6.35 Million, while last year there were 7 homes sold above $5 Million. There are currently 725 homes in the desert listed for $1 Million or more, down just a bit from last year.

At this point of the season, I am seeing price adjustments on probably 50% of the homes for sale. Most sellers are hoping for a sale before summer arrives, so the next 30-60 days should actually be a good time to find a good home, at a good price. And, because of this increased motivation, I expect sales to pick up some steam during this period.

This month I have included the following items you might find interesting:

Cuba: It looks like Cuba will soon have some of the economic sanctions lifted and will soon be open for tourists. This Wall Street Journal article looks at the developing Real-Estate Revolution in Cuba. Read the article...
This is an article where the headline does not tell the story: From the LA Times, 'Baby Boomers, flush with stock gains, drive record vacation home sales.' Sounds great, but as the article goes on to say ' California witnessed a contrasting trend' with vacation homes sales falling 5%. This article also points out that the median vacation home price across the US fell 11%, to $150,000! Not much help for the Coachella Valley. Read the full article...
Nixon's Western White House is Listed For Sale at $75 Million. This 5.5-acre, ocean front property in San Clemente has over 15,000 square feet. Read more...
The 10 Most Expensive homes sold in the Desert in March 2015, according to the California Desert MLS: These 10 homes ranged in price from$1,980,000 for a home at Toscana CC to $6,350,000 for a home at The Hideaway. The Hideaway leads the list with 3 closings, while homes at Clancy Lane, Tradition & Bighorn are also in the Top 10. See the complete list...

As usual, I hope you enjoy receiving this monthly update on the high-end desert real estate market. If you have any comments or input, please let me know!
Thanks!,
Bruce

Real-Estate Revolution Hits Cuba
Micharl Allen and Kejal Vyas - The Wall Street Journal
It looks like Cuba will soon have some of the economic sanctions lifted and will soon be open for tourists. This Wall Street Journal article looks at the developing Real-Estate Revolution in Cuba. Read the full article...
Baby boomers, flush with stock gains, drive record vacation home sales
E. Scott Reckard- LA Times
This is an article where the headline does not tell the story: From the LA Times, 'Baby Boomers, flush with stock gains, drive record vacation home sales.' Sounds great, but as the article goes on to say ' California witnessed a contrasting trend' with vacation homes sales falling 5%. Read the article...

Nixon's Western White House Is Listed for $75 Million
Candace Jackson - Wall Street Journal

Nixon's Western White House is Listed For Sale at $75 Million. This 5.5-acre, ocean front property in San Clemente has over 15,000 square feetRead More...

The 10 Most Expensive Desert Homes Sold in March 2015
Desert Area MLS

The 10 Most Expensive homes sold in the Desert in March 2015, according to the California Desert MLS: These 10 homes ranged in price from$1,980,000 for a home at Toscana CC to $6,350,000 for a home at The Hideaway. The Hideaway leads the list with 3 closings, while homes at Clancy Lane, Tradition & Bighorn are also in the Top 10 See the complete list...

49150 Vista Estrella Rancho La Quinta CC, LQ $1,595,000
44828 Santa Rosa Court Desert Horizons CC, IW $985,000
28 Villaggio Place, Villaggio on Sinatra Rancho Mirage $1,225,000
75617 Valle Vista Desert Horizons CC, IW $499,900
26 Sun Ridge Circle (Vacant Lot), Tamarisk Ridge, RM $317,000
75075 Inverness Drive, Desert Horizons Country Club - Indian Wells Priced at: $1,295,000
Price Reduced! Dramatic free-standing home on a premium lot at Desert Horizons CC! This Augusta plan has a southern exposure with Santa Rosa Mountain views across an interior waterscape. Incredible outdoor living with pool & spa, fire pit, lush landscaping, electric awnings, built-in cook center. Great curb appeal with paver stone driveway & walkway plus LED lighting. Entry courtyard leads to double, Sans Souci glass doors. Inside you will find 24x24 Travertine flooring, custom cabinetry & built-ins thru-out, Fine Art Chandeliers, LED lighting. A chefs kitchen includes upgraded cabinets, granite countertops, top-quality appliances (Wolf, Dacor & Sub-Zero). Elegant Master Suite with upgraded cabinets plus new countertops and 'bowl' sinks in the bath. One of the bedrooms is used as a built-in office, and one is used as a dressing room. There is an 85 panel Solar System for very low electric bills. Garage has AC, epoxy floors & cabinets. Offered furnished per inventory.




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