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Friday, May 15, 2015


Valued Friends & Clients!

The middle of May in the Coachella Valley is when the seasonal activity starts winding down. The car transporters have been loading up some of the luxury cars and heading out of town, the temperatures will be moving up soon (although we did see some snow on the local mountains last week), and many of the winter residents are heading to cooler climates for the summer.

For the next 30 days or so, I expect to see sales activity more focused on the very best values. These Buyers will be looking for the 'end of the season' deals, hoping to find those Sellers who really want to sell before summer. As we hit the end of June, we will move into 'summer mode' when only the most serious buyers will be looking.

In the desert's high-end real estate market this season, the number of sales of homes priced $1 Million & higher, is off between 15-20% from last year. But, the sales of homes in the $1-2 Million range remain stronger than homes above $2 Million. In conversations with other top Realtors and industry experts, there does not seem to be a simple answer to this season's slowdown.

At a recent Market Watch presentation, their figures show that in the most recent 12 month cycle, 452 homes sold above $1 Million. This accounted for just 5.5% of all homes sold in the Coachella Valley. La Quinta enjoyed 32% of these sales and Palm Springs surged with 19%. Rancho Mirage, Indian Wells & Palm Desert sales combined accounted for 47%.

The percentage of sales above $1 Million breaks down as follows:

$1 - $2 Million - 47.3%
$2 - $3 Million - 10.5%
$3 - $4 Million - 3.0%
Above $4 Million - 2.0%

While the US economy remains relatively strong and interest rates remain very low, there continues to be a good case for real estate to be a solid part of an investment portfolio. And, with the lifestyle our desert has to offer, next season could easily show a rebound in sales activity.

I have included the following items you might find interesting:

From GALLUP - Economy, a recent survey shows that a majority of Americans agree that real estate is a best long term investment. Read more...
With the water crisis in California in everyone's conversation these days, this article from The Wall Street Journal takes a look at California's Golf Courses getting 'Greener'. Read more...
The Ritz Carlton Hotel in Rancho Mirage has enjoyed a successful 1st season. Recently, the Ritz Carlton Residences have been released for sale, offering a unique limited use ownership/hotel rental model. This article is from The Desert Sun. Read more...
Larger than Life: Making Rooms Look Bigger with Clever Staging. Tips & tools to help improve the marketing appearance of any real estate on the market. Take a look!...
The 10 Most Expensive Homes Sold in the Desert in April 2015, according to the California Desert MLS: These 10 sales ranged in price from $2,525,000 for a home at Morningside CC, to $4,700,000 for a home at The Madison Club. This month's list represents a variety of homes across the desert, with 6 in La Quinta, 3 in Rancho Mirage and 1 in Palm Springs. See the complete list...

I hope you find this monthly update on the high-end desert market interesting and helpful. If you have any comments or input, please let me know!


Thanks,
Bruce

Americans Again Say Real Estate Is Best Long-Term Investment
Lydia Saad - GALLUP - Economy
For the second straight year, more Americans name real estate than stocks, gold, savings accounts/CDs or bonds as the best long-term investment. Real estate leads with 31% of Americans choosing it, followed by stocks/mutual funds, at 25%. Read the full article...
California's Golf Courses Are Getting 'Greener'
John Paul Newport - Wall Street Journal
Despite an unexpected regulatory wrinkle last week that could have a transformative impact on the lush desert golf courses in Palm Springs and the Coachella Valley, the California golf industry appears reasonably well-positioned to deal with the state's stringent new water restrictions. Read the article...

'Exclusive' Ritz-Carlton Residences selling fast
Rosalie Murphy - The Desert Sun

The first phase of the Ritz-Carlton Residences have hit the Rancho Mirage condo market, and they started selling almost immediately: Six had sold just five days after their release earlier this month. Read More...

Larger than Life: Making Rooms Look Bigger with Clever Staging
bhgrealestateblog.com
Many buyers look for a new home because they need more space. Unfortunately, many homeowners maximize their living areas by cramming the rooms with as many things as they can hold. Read the article...

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

The 10 Most Expensive Homes Sold in the Desert in April 2015, according to the California Desert MLS: These 10 sales ranged in price from $2,525,000 for a home at Morningside CC, to $4,700,000 for a home at The Madison Club. This month's list represents a variety of homes across the desert, with 6 in La Quinta, 3 in Rancho Mirage and 1 in Palm Springs. See the complete list...

75605 Valle Vista Desert Horizons CC, IW $449,000
28 Villaggio Place Villaggio on Sinatra, RM $1,225,000
45381 Rancho Palmeras Drive Residential Indian Wells $549,000
75617 Valle Vista Desert Horizons CC, IW $499,900
75605 Valle Vista Desert Horizons CC, IW $449,000
75240 Inverness Drive Desert Horizons CC, IW $425,000
44818 Del Dios Circle Desert Horizons CC, IW $410,000
78370 Coyote Canyon, Tradition Golf Club,
La Quinta
Priced at: $3,950,000
Furnished
On an interior cul-de-sac & just a short walk to the Clubhouse & Fitness Center, this Tom Jakway designed home is perfect for casual living or a family compound, as well as for the sports enthusiast. Great Room design features a chef's kitchen & a formal dining room. With 6 Bedrooms, Office & Exercise Room, this home will fit the needs of many. Open beamed & wood ceilings, stained hardwood floors & massive fireplace create a feeling of elegance. This home includes audio visual, video security & a 13K watt solar system (100 panels). A 3-Car + Golf Cart Garage. Outdoor living includes built-in cooking area with TV, plus a 65' pool, spa & waterfalls & a large putting green! Big views across the 4th Fairway & to the mountains. This may be the only home in the desert with an indoor basketball gym, w/4 glass backboards. Or, use the Pickleball Court! And, a large game room with wet bar overlooks the court! The Court is not included in the square footage listed. Offered Furnished.




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"If you don't like something, change it. If you can't change it, change your attitude."

- Maya Angelou


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