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Tuesday, December 15, 2015


Valued Friends & Clients!

I want to start this month's letter by wishing everyone a Very Happy Holiday Season and a Healthy & Prosperous Year in 2016! I sometimes find myself too focused on business and not focused enough on all of the other positive things in my life. This is a great time for us all to reflect on the most important things in our lives.

As 2015 comes to a close, I am looking back with these thoughts: The high-end market seems to have settled into the 'new normal': The inventory of homes for sale is about 15% higher than last year. The buyers continue to look for the best homes at the best prices. And, the high-end 'move-up' buyer has been replaced by the 'stay-put' or 'move-down' buyer.

What about the desert real estate market in 2016? The biggest influencer this next year may be the presidential election. Over the past 30 years, I have noticed that election years tend to put some buyers into a 'wait & see who wins' frame of mind. With the media focused on the elections, this will have an impact. And, it looks like interest rates will finally start to move higher, and could possibly increase by 1% over the next year. Although the economy appears to continue improving, there are a number of factors that could affect the real estate market. Every year there are a number of things that cause uncertainty, so 2016 shouldn't be any different.

I expect to see the number of high-end sales in the desert to be steady, but I don't see prices gaining much ground, if any. We continue to move towards a market where the buyer has more control. The number of homes priced above $1 Million is down about 5% from last year, which is not enough of a change to cause concern.

This month I am including the following items you might find interesting:

The Wall Street Journal takes a look at the Canadian Home Buyer. We have probably talked about this too much over the past, but I will say that there now appear to be some of the Canadian buyers returning to the desert market, especially in the higher priced homes. Read the article...
This Luxury Daily article takes from a Wealth-X report on the Ultra-high-net-worth home buyers who are looking for smart homes and green homes. Read the article...
The San Francisco real estate market has been on fire for a long time. This economist says a correction is coming. Read the article...
Negative Interest Rates? I have seen several items on banks in Europe starting to consider charging people to keep money on deposit (what?). This recent Wall street Journal article describes some interesting effects. Read the article...
The 10 Most Expensive Desert Homes sold in November 2015, according to the California Desert Area MLS: Selling prices ranged from $1,300,000 for a home in Palm Springs to $3,479,000 for a newly constructed home at Tradition Golf Club. The 10 Most Expensive Desert Homes sold in October 2015, as reported by the California Desert Area MLS: These sales range from $1,540,000 for a home at The Hideaway to $3,400,000 for a home at The Vintage Club. This list includes 3 homes at The Hideaway, as well as homes at The Vintage Club, Toscana CC, The Tradition and several others. See the complete list...

It is hard to believe that this newsletter is Number 107, and that I have been delivering my insights on the Coachella Valley's luxury real estate market for nine years! I hope you find this information interesting.

Sincerely,
Bruce

74182 Desert Tenaja Trail,
Indian Wells
Offered at: $2,395,000
Absolutely stunning, elevated down valley views across the 10th & 1st Fairways from the incredible home at The Reserve Club in Indian Wells! Enjoy snow capped mountain and city light views while relaxing in the patio spa or the infinity edged pool. Private courtyard entry with fountain and flagstone decking welcomes you. The Great Room plan features a master suite with fireplace and 2 inviting guest suites for family & friends. Interior design by Shannon Martin is of the highest quality and style. The gourmet kitchen has custom height eating bar, travertine countertops and high quality appliances. Office with built-in desk, cabinets & shutters is well separated from the living space. Many custom features through-out. Indoor outdoor living at it's finest with covered patio space, fireplace and cooking, all taking in the incredible views! The Reserve Club offers world class dining, golf, and many amenities. Purchase of a Golf Membership is required. Don't miss this great home!

Weak Canadian Dollar Shifts U.S. Home Purchases
Wall Street Journal
The Wall Street Journal takes a look at the Canadian Home Buyer. We have probably talked about this too much over the past, but I will say that there now appear to be some of the Canadian buyers returning to the desert market, especially in the higher priced homes. Read the article...
Greener, Smarter Homes Poised to Continue Growth: Report
Forrest Cardamenis, Luxury Daily
This Luxury Daily article takes from a Wealth-X report on the Ultra-high-net-worth home buyers who are looking for smart homes and green homes. Read the article...

Economist Predicts Painful Correction for San Francisco Economy
Kimberley Sirk, Inman

The San Francisco real estate market has been on fire for a long time. This economist says a correction is coming. Read the article...

Less Than Zero: Living With Negative Interest Rates
Tommy Stubbington, Wall Street Journal
Negative Interest Rates? I have seen several items on banks in Europe starting to consider charging people to keep money on deposit (what?). This recent Wall street Journal article describes some interesting effects. Read the article...

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

The 10 Most Expensive Desert Homes sold in November 2015, according to the California Desert Area MLS: Selling prices ranged from $1,300,000 for a home in Palm Springs to $3,479,000 for a newly constructed home at Tradition Golf Club. The 10 Most Expensive Desert Homes sold in October 2015, as reported by the California Desert Area MLS: These sales range from $1,540,000 for a home at The Hideaway to $3,400,000 for a home at The Vintage Club. This list includes 3 homes at The Hideaway, as well as homes at The Vintage Club, Toscana CC, The Tradition and several others. See the complete list...

44834 Doral Drive Desert Horizons CC, IW $779,000 Furnished
68 Royal Saint Georges Way Westgate, RM $1,975,000
49150 Vista Estrella Rancho La Quinta CC, LQ $1,595,000 Furnished
74339 Desert Tenaja The Reserve, IW $1,125,000



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"The first step towards the solution of any problem is optimism."

- John Baines


"Obstacles are those frightful things you see when you take your eyes off your goals."

- Hannah More


"It's not what you gather, but what you scatter that tells what kind of life you have lived."

- Helen Walton

 
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