Indian Wells Featured Property

Valley’s Housing Market
Warming

Debra Gruszecki • The Desert Sun • April 12,
2010

Latest data reveals prices, sales up

Prices and sales in the Coachella Valley’s real estate market are rising, a new report from MDA DataQuick
shows.  The median sales price of new and single-family homes rose 11 percent to about $200,000, about
$20,000 higher than in February 2009.  Home sales also rose 9.4 percent compared to the same period last year.

Real estate sales have been outpacing sales from the previous year every month since October. Sales
volume rose 31 percent in November, 29 percent in December, and 22.2 percent in January.

Greg Berkemer, executive vice president of California Desert Association of Realtors in the valley, said the numbers clearly point to a market that’s recovering from the bottom.

“Buyers are taking advantage of the best price margins now,” he said. With DataQuick also reporting in February one home selling for $6.7 million in Palm Desert, and six other sales above $1 million, Berkemer said it shows
continued interest in luxury real estate in the valley.

“Those transactions are still being made,” he said. Scott Newton, associate broker of Windermere Real
Estate in Indian Wells and president of the Palm Springs Regional Association of Realtors, said it’s a
good sign, but one that shouldn’t be misconstrued.

What’s selling is property on the low end of the spectrum — primarily to investors making cash
deals, he said.

“Inventory is reducing rapidly, so the median is creeping up,” Newton said. “But it’s still off from
three years ago.” Mid-priced homes, meanwhile, are still in a tough market.

“It’s positive because buyers are back in the market,  but people who live in homes within the $300,000
and $500,000 range are still having a more difficult time with sales and prices.”

With the tourist season about to come to a close,  questions remain about how the valley will fare
when the weather heats up and sales typically cool  down.

“The February numbers could have been a little higher,” Newton said, so it’ll be interesting to see
how sales and median price hold up.

Real estate experts are also concerned about shadow inventory on distressed property.

Credits help buyers

 Helping to spur short-sale activity is recent action by the California Legislature to provide relief for
homeowners who have mortgage modifications, lost their homes to foreclosure or sold their houses for
less than they owed on their mortgages.

The $10,000 state tax credit for new and existing  home buyers also could spur sales through 2010.

In January, new home sales at a median of $259,750 were down just 5 percent from the previous year.
The February new home sales total represented a gain of 21 percent over the year before when the
median was $278,750.

New home sales had been off 30 to 68 percent through most of 2009. James Brownyard, vice president of legislative
analysis for the Desert Chapter of the Building Industry Association, said the federal and state tax
credits have opened the door for people who’ve been buying a new house.

“I know there’s been a lot of movement,” he said as a result of the tax credits.

“If you can get homes that are new and pre-owned off the market, all the more reason to believe there is
the standing demand and that there will be buyers for the future.”

Debra Gruszecki covers real estate and Indian gaming for The Desert Sun. She can be reached at
debra.gruszecki@thedesertsun.com or (760) 778-4643.

Interested or buying or selling property in Palm Springs or the Coachella Valley area? Contact Patrick-Stewart Properties today.