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Monday, April 18, 2016


Valued Friends & Clients,

As we hit the middle of April here in the Coachella Valley, another successful ANA Inspiration LPGA Golf Championship was held a couple of weeks ago and the 1st Coachella Music Festival weekend has come and gone. The 2nd Coachella Fest weekend is coming, followed by Stagecoach, the Country Music Festival. These music festivals create a lot of traffic in the east valley and bring an enormous amount of money into the local economy. They also have a huge impact on short-term rentals, but not much impact on homes sales. We are seeing some homes being marketed and sold as 'festival houses' but not on a large scale.

The real estate market above $500,000 was not overly strong in the first quarter this year. Sales of homes between $500,000 & $1,000,000 seemed to pick up a bit in March, but the high end & luxury market seems to be in a holding pattern with sales numbers being less than we expect to see. With interest rates remaining extremely low & economists continuing to say the economy is doing fine, it seems that more homes should be selling, but the high-end market remains soft.

While there are some high-end homes selling, these sales are focused on new construction where available, homes that are very aggressively priced and the homes that show extremely well or have great locations and/or views. Or, all of the above.

Closings on homes that sold above $1 Million in the 1st Quarter of 2016 were at 133, compared to 131 last year, compared to 152 in 2014. Above $2 Million there were 20 closings compared to 27 last year. There were 5 homes sold above $5 Million compared to one last year, and 7 in 2014. There are now 863 homes in the desert listed at $1 Million and above, compared to 725 listed at this time last year.

Having completed dozens of housing studies in the Coachella Valley, I can comfortably sat that the number of high-end homes for sale far exceeds the number of buyers for these homes. Simply, the supply of these homes does not match the demand for them - it would take several years to sell through the existing inventory. This puts us into a buyers market, and those sellers that understand this and honestly want to get the property sold are adjusting their prices.

Hopefully you will find some of the following items interesting:

Across the country the luxury home market is softening. Even though the Coachella Valley has been experiencing this softening for some time, this article from Realtor.com discusses price reductions in some of the areas that haven't seen them recently. Read the article...
Real estate being sold at auction has been around longer than I have. But, it has not been very popular in the Coachella Valley, until recently. There was a home at The Reserve Club (auction list price $5.99M) that sold at auction on March 29th, and there is a home on Clancy Lane in Rancho Mirage that will be auctioned next month (auction list price $6.5M). Now, one of the more recognized auction companies, Concierge Auctions, has formed a partnership with Leading RE, which Bennion Deville Homes is affiliated with. Read the article by Inman News...
While on the subject of auctions, here is a link to the information on the home at The Renaissance, on Clancy Lane in Rancho Mirage that is scheduled to be sold at auction with NO RESERVE on May 3rd. This is a 9800 square foot home on a 1.23-acre lot, built in 2008. If you have any questions or want more information on this, let me know. I can register as your agent for the auction and help you through the process. Here is the Concierge Auction link...
The Wall Street Journal ran this recent article on what it might cost when buying a home with an indoor sports court compared to a home without one. I happen to have a great home at The Tradition Golf Club in La Quinta listed for sale with an indoor basketball/sports/pickle ball court. This home is 10,014 square feet with 6 Bedrooms, Office, Game Room & a Gym. Read the Wall Street Journal article... Check out the basketball home at The Tradition: www.78370CoyoteCanyon.com
The 10 Most Expensive homes Sold in the Desert in the 1st Quarter of 2016, according to the California Desert MLS: These 10 homes ranged in priced from$2,650,000 for a home at Bighorn to $8,000,000 for a new home at The Madison Club, which has 4 homes on this list. Homes at Tradition, The Hideaway & The Tennis Club area in Palm Springs also made the list. See the complete list...
Here are the 10 Most Expensive Homes listed for sale in the Desert, also according to the California Desert MLS: These homes range from $10,750,000 for The Pond Estate in Palm Springs to $29,950.000 for an incredible home at The Madison Club. There are several celebrity homes on this list; Bob Hope's home in Palm Springs is listed at $24,999,000, Susan Somer's home in Palm Springs is listed at $14,500,000, the 7-acre Heckmann Estate on Clancy Lane is listed at $12,000,000. There are also homes at The Reserve Club and The Vintage Club. See the complete list...

Thank You for the comments I get back from this newsletter. As usual, I hope you find it interesting.

Sincerely,
Bruce

49360 Sunrose Lane
Ironwood CC, Palm Desert
$2,525,000

Elevated View Estate at The Highlands of Ironwood Country Club! Designed by famed California architect Robert Altevers, this spectacular steel-framed iconic masterpiece showcases fine crafted natural materials in vaulted ceilings of imported red cedar, custom mahogany cabinetry, and walls of hand-inlaid stone. Sliding glass walls merge the striking contemporary interiors seamlessly with dramatic desert landscaping. The spacious outdoor living area is situated around the sparkling blue mosaic-tiled pool and spa with panoramic southern views overlooking the Santa Rosa Mountains and the 15th fairway and green of Ironwood Country Club's acclaimed North Course. This unique estate offers that rare combination of privacy, views, and style. A golfer's getaway, a family retreat or an entertainer's delight, this property has it all.

More Luxury-Home Sellers Drop Their Asking Prices
Realtor Magazine
Across the country the luxury home market is softening. Even though the Coachella Valley has been experiencing this softening for some time, this article from Realtor.com discusses price reductions in some of the areas that haven't seen them recently. Read the article...

Concierge Auctions Forms Exclusive Partnership with LeadingRE
Caroline Feeney - INMAN NEWS
Real estate being sold at auction has been around longer than I have. But, it has not been very popular in the Coachella Valley, until recently. There was a home at The Reserve Club (auction list price $5.99M) that sold at auction on March 29th, and there is a home on Clancy Lane in Rancho Mirage that will be auctioned next month (auction list price $6.5M). Now, one of the more recognized auction companies, Concierge Auctions, has formed a partnership with Leading RE, which Bennion Deville Homes is affiliated with. Read the article by Inman News...
Rancho Mirage - House on Auction - May 3, 2016
While on the subject of auctions, here is a link to the information on the home at The Renaissance, on Clancy Lane in Rancho Mirage that is scheduled to be sold at auction with NO RESERVE on May 3rd. This is a 9800 square foot home on a 1.23-acre lot, built in 2008. If you have any questions or want more information on this, let me know. I can register as your agent for the auction and help you through the process. Here is the Concierge Auction link...

What You'll Pay for a Basketball Court at Home
Leigh Kamping-Carder - WSJ

The Wall Street Journal ran this recent article on what it might cost when buying a home with an indoor sports court compared to a home without one. I happen to have a great home at The Tradition Golf Club in La Quinta listed for sale with an indoor basketball/sports/pickle ball court. This home is 10,014 square feet with 6 Bedrooms, Office, Game Room & a Gym. Read the Wall Street Journal article...

Check out the basketball home at The Tradition: www.78370CoyoteCanyon.com

10 Most Expensive Homes Sold in the Desert in the 1st Quarter of 2016
Desert Area MLS

The 10 Most Expensive homes Sold in the Desert in the 1st Quarter of 2016, according to the California Desert MLS: These 10 homes ranged in priced from$2,650,000 for a home at Bighorn to $8,000,000 for a new home at The Madison Club, which has 4 homes on this list. Homes at Tradition, The Hideaway & The Tennis Club area in Palm Springs also made the list. See the complete list...

10 Most Expensive Homes Listed for Sale in the Desert
Desert Area MLS

Here are the 10 Most Expensive Homes listed for sale in the Desert, also according to the California Desert MLS: These homes range from $10,750,000 for The Pond Estate in Palm Springs to $29,950.000 for an incredible home at The Madison Club. There are several celebrity homes on this list; Bob Hope's home in Palm Springs is listed at $24,999,000, Susan Somer's home in Palm Springs is listed at $14,500,000, the 7-acre Heckmann Estate on Clancy Lane is listed at $12,000,000. There are also homes at The Reserve Club and The Vintage Club. See the complete list...

54 Granite Ridge Mirada Estates, RM $4,975,000 Furnished
48934 Pear Street Indio $529,000
74182 Desert Tenaja The Reserve, IW $2,395,000 Furnished
68 Royal Saint Georges Mission Hills CC
Westgate - RM
$1,975,000
75355 St Andrews Ct Desert Horizons CC, IW $845,000 Furnished
75137 Spyglass Drive Desert Horizons CC, IW $695,000 Furnished
75583 Desert Horizons Desert Horizons CC, IW $379,000 Furnished



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"If you have integrity, nothing else matters. If you don't have integrity, nothing else matters."

- Alan K. Simpson


"Personality can open doors, but only Character can keep them open."

- Elmer G. Letterman, Business Executive

 
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