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Tuesday, June 16, 2015


Valued Friends & Clients!

Moving into the middle of June, the seasonal real estate marketing period in the Coachella Valley is winding down for the summer. With temperatures due to be at or above 110 degrees, not as many people will be out looking for homes. Those buyers who are still in the market are looking for the very best homes at the very best prices. Even though it is sometimes difficult to put a transaction together under these circumstances, some sales continue to be made. We are a 7/365 business!

In the first 5 months of 2015, high-end sales have been off the pace we saw during the same period last year. Along with the reduced number of high-end sales, we have seen a reduction in the average price per square foot of those homes that did sell, as well as an increase in the inventory of homes for sale. Across the valley there were 248 homes sold priced above $1 Million, compared to 281 last year, which represents a 12% drop. There were 21 homes sold above $3 Million in 2015 compared to 26 in 2014 (off 20%). Above $5 Million, there were only 4 homes sold in 2015 compared to 11 sold in 2014.

Here is the breakdown of the number of sales above $1 Million by City:

  1/1 - 5/31/14 1/1 - 5/31/15 % Change
La Quinta 97 86 -11%
Palm Springs 46 56 +21%
Rancho Mirage 52 46 -18%
Indian Wells 48 31 -35%
Palm Desert 38 29 -24%

As you can see, Palm Springs enjoyed a significant increase in the number of high-end home sales, while the other major desert cities were off anywhere from 11%-35%.

While the overall number of sales has dropped, there were still 248 homes sold above $1 Million this season. If sellers adjust the expectations of their homes' values, I expect that we would see more buyers move back into the market. The strength of the dollar has almost eliminated the Canadians and the few other foreign buyers. Buyers today are looking for smaller homes than in the past, and we are not seeing as much movement from smaller to larger homes. This may be the new normal.

Here are some items you might find interesting:

Luxury home developments across the country are kicking up the number and types of amenities and activities they offer to attract buyers. This article from The Wall Street Journal looks at this important trend. Read more...
Solar Panels are one of the most popular home improvements right now. In the desert climate, they make a lot of sense, and can offer very attractive return on investments. Inman News takes a look at buying the solar panels vs. leasing them. Read more...
The strong US dollar has had a negative effect on foreigners buying US real estate across the country. This Wall Street Journal article looks at the Canadian effect on our market, as well as other US markets affected. Read more...
You may or may not be a Star Trek fan as I am, but I am sure you are at least aware of the impact Star Trek has had on our culture. I found a building in China that is built in the shape of the USS Enterprise! Take a look...
The 10 Most Expensive Desert Homes Sold in May 2015: According to the California Desert Area MLS, these 10 sales range from $2,100,000 for a home at The Hideaway to $7,950,000 for an 8,213 square foot home at Bighorn Golf Club. This month's list also includes homes at The Vintage, The Reserve, PGA West, as well as Mirada Estates and Thunderbird Cove in Rancho Mirage. See the complete list...

As you are probably aware, I have been one of the top Realtors in the Coachella Valley for over 30 years. And, my son, Keith, has been a part of my team for more than 15 years. A large part of our business comes from past clients and referrals, so if you know of anyone thinking of selling or buying a home in the desert, please send them our way.


Sincerely,
Bruce

49150 Vista Estrella,
Rancho La Quinta
Priced at: $1,595,000
Furnished
Outstanding Montana 3 with a dramatic location overlooking multiple fairways of the Jerry Pate Golf Course, with water and mountain views! Estate sized lot is just under .5-acre with a large side yard allowing the casita, with kitchenette, to be in the rear with golf course views and a private entrance. This residence features 4 Bedrooms, 4.5 Baths with 4243 square feet. Travertine flooring, baseboards, custom built-ins, shutters & electric blinds and designer furnishings are included. Large kitchen is perfect for the cook and for entertaining, adjacent to the family room with a granite top wet bar with seating. Large Master Suite with fireplace and luxurious bath area. Outdoor living includes covered overhang, pebble tech pool & spa, fireplace and built-in BBQ. 2-Car plus golf cart garage. Rancho la Quinta offers 2 Award Winning golf courses, tennis courts, fitness center & dog park.
In Real Estate, Golf Ups Its Game
Cecilie Rohwedder - Wall Street Journal
To sell homes, golf communities can't just stick to golf. Luxury developments now include amenities like fishing ponds, skate parks, orchards and movie theaters to attract wealthy buyers. Read the full article...
Is it better for homeowners to lease or buy solar panels?
Rick Scherer - inman
With the sunny summer months quickly approaching and everyone's natural desire to save money and "go green," solar panels probably seem like an obvious idea. They can help cut a home's energy costs as well as reduce carbon footprints. Read the article...

Strong Dollar Makes U.S. Real Estate Less Attractive to Foreigners
Eric Morath - Wall Street Journal

A strengthening dollar is putting the haven of U.S. homeownership out of reach for some foreign investors. Read More...

Office building in China Shaped Like Star Trek's USS Enterprise
American Luxury Magazine
You may or may not be a Star Trek fan as I am, but I am sure you are at least aware of the impact Star Trek has had on our culture. I found a building in China that is built in the shape of the USS Enterprise! Read the article...

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

The 10 Most Expensive Desert Homes Sold in May 2015: According to the California Desert Area MLS, these 10 sales range from $2,100,000 for a home at The Hideaway to $7,950,000 for an 8,213 square foot home at Bighorn Golf Club. This month's list also includes homes at The Vintage, The Reserve, PGA West, as well as Mirada Estates and Thunderbird Cove in Rancho Mirage. See the complete list...

47111 Vintage Drive East #107 The Vintage Club, IW $625,000
28 Villaggio Place Villaggio on Sinatra, RM $1,225,000
45381 Rancho Palmeras Drive Residential Indian Wells $549,000
45655 Verba Santa Drive South Palm Desert $549,000
75606 Valle Vista Desert Horizons CC, IW $449,000
75240 Inverness Desert Horizons CC, IW $425,000
44818 Del Dios Circle Desert Horizons CC, IW $410,000
75701 Valle Vista Desert Horizons CC, IW $395,000



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"It's fine to celebrate success but it is more important to heed the lessons of failure."

- Bill Gates


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- Albert Einstein

 
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