The median price of a home in the Coachella Valley between April 2009 and February of this year jumped 26.8 percent — from a low of $156,060 to $197,820.

That’s one of several measures indicating the desert housing market has stabilized and is gradually improving, a leading state real estate economist said Wednesday.

“I do think things are going to improve as we move forward, but at an uncomfortably slow pace,” Robert Kleinhenz, deputy chief economist for the California Association of Realtors, told more than 100 Realtors, brokers and affiliates at the Palm Springs Regional Association of Realtors meeting.

“From a buyer’s perspective, affordability and value are about as good as they’re going to get,” Kleinhenz said.
Both home sales and prices will increase about 2 percent statewide this year, he said.

Persistently weak economic fundamentals, such as Riverside County’s 14.3 percent unemployment rate, as well as questions about the state’s and nation’s ability to sustain job creation, are among issues that are keeping the housing market in check.
Some promising news will help make 2011 a “transitional” year, Kleinhenz said. Although California lost 1.4 million jobs in 2008 and 2009, the state added 100,000 last year.

He and other economists expect housing industry activity to pick up as job creation shows more strength.
Other factors that could help the valley’s housing market range from low mortgage rates to record-level affordability and fewer distressed properties coming onto the market.

The California Desert Association of Realtors reported the median home price in February was $215,000 — up from $200,000 in February 2010 and $185,000 in January.

Jim Franklin, a broker associate with Prudential California Realty who is also president of the Palm Springs Regional Association of Realtors, said tighter inventories, fewer “short sales” and foreclosures, and other factors have generally pushed home prices up in recent years.

There are hurdles for the valley’s housing market to overcome, however, such as rising gas prices and other potential inflation.

So Kleinhenz doesn’t anticipate any surge in housing prices is in the offing.

Some banks have raised down payments and launched other strict measures that can be hurdles for potential borrowers.
“Access to credit isn’t what it used to be, but hopefully it will ease up a bit,” Kleinhenz said.

If you are interested in listing your home, contact Patrick-Stewart Properties today!

987 N. Fairview Circle, Palm Springs

Home sales rose 7.3 percent in February across the Coachella Valley compared to the same month a year ago, bucking a downward trend in Southern California and the nation.

The latest monthly home-sales tally also rose considerably from January, La Jolla-based DataQuick Information Systems reported.
The 848 existing homes, condos and newly built homes that sold last month in the valley was up from 727 in January, DataQuick reported.

Brisk sales of previously occupied condos — a nearly 31 percent hike in year-over-year sales — helped boost the valley’s real estate market, analysts and real estate professionals said.

The Coachella Valley’s home sales increase last month compared to an 11.2 percent drop for all of Riverside County and a 6.4 percent drop across Southern California.

Nationwide, sales of existing homes fell 9.6 percent in February compared to the same month a year ago, the lowest level since November, the National Association of Realtors reported.

The latest monthly home-sales figures illustrate how tough it is to compare the valley’s real estate market with the rest of Southern California or even other parts of Riverside County, said Jim Franklin, president of the Palm Springs Regional Association of Realtors.

“We’re unique here in the Palm Springs-Coachella Valley,” said Franklin, a broker associate with Prudential California Realty.

“People want to live here; it’s not like they have to live here. So our market holds up pretty steady.”

The valley’s median price — half sold for more, half for less — was $200,000 in February, the same as February 2010, DataQuick reported. That was up from $181,250 in January.

Southern California’s median price was $275,000 in February, DataQuick reported.

Positive factors

Analysts with DataQuick and the California Association of Realtors said there appears to be enough potential demand that the pace of home sales is expected to increase over the next several months.

Low prices, low mortgage rates, available credit, signs of job growth and improving consumer confidence are among factors that could help boost home sales this spring, said John Walsh, DataQuick president.

“There’s pent-up demand out there,” Walsh said. “Lots of people have been waiting for the right time to buy.”

The Coachella Valley is getting into its prime season, with May typically one of the busiest months, Franklin said.

“At the end of the season, people start buying,” he said. “I think if people don’t buy this year, they’re going to come back and say, ‘Boy, I should have bought this.’”

Franklin said condos are selling well because many out-of- town owners perceive them as easy to care for and they’re priced well at a time when the inventory of lower priced single-family homes is waning in some valley cities.

Sales of newly built homes continued to struggle in the valley, in part because builders are faced with steep competition from foreclosed and other distressed properties.

The figure of 30 newly built homes that sold in the valley during February was down 48 percent drop from February 2010, DataQuick reported. In January, 23 new homes sold, a 39 percent drop from a year ago.

Foreclosure factor

Leslie Appleton-Young, chief economist for the California Association of Realtors, said a big decline in the median price statewide in January could primarily be attributed to the brief moratorium that some banks placed on foreclosures last fall.

As the foreclosures resumed, Appleton-Young said more distressed properties came onto the market, which led to an uptick in sales of lower-priced homes in January. It’s a trend likely to continue as lenders expedite the disposition of those properties, Appleton- Young said.

DataQuick analysts observed that foreclosure resales made up 37.1 percent of all existing home sales in February across Southern California, which was up from 36.8 percent in January but down from 42.4 percent a year ago.

Short sales — transactions in which properties are sold for less that what is owed — made up about 19.8 percent of all home resales in Southern California in February, DataQuick reported.

CDAR officials have joined the California Association of Realtors to urge banks, government officials and others with a stake in the housing market to make short sales easier, faster and more efficient.

Some homebuyers have been frustrated having to wait as many as three months for banks to respond do short sale offers.
Greg Berkemer, CDAR executive director, said “we know our market is recovering,” even if fluctuations in sales and prices is uneven or choppy from month to month.

If you are interested in Real Estate throughout the Coachella Valley, contact Patrick-Stewart Properties at (760) 325-9091.

“Just being on the market is not the same as being in the market,” says Papasan.

Price and condition of the home you’re selling are key to being “in” the market, according to Papasan.

“Buyers are looking for deals and steals,” he says. “They are spoiled with choices.”

In order to remain in the market you need to make sure your home in priced right and in the right condition to attract buyers. The best way to judge whether you’re in that sweet spot is by the number of showings you’re getting, according to Papasan.

For more tips on purchasing a home and if you’re interested in buying or selling property in Palm Springs or the Coachella Valley area, Contact Patrick-Stewart Properties today.

Are you planning on exploring the Coachella Valley real estate market in search of mid-century homes for sale in the Palm Springs area? If so, The Wall Street Journal recently published an article on some of the pitfalls new home buyers should try to avoid while searching for that dream home.

According to the article, a few of the mistakes many first-time home buyers end up making include snubbing the real estate agent, guesstimating how much you can afford and making arbitrary offers.

Here are a few of the key points you want to keep in mind if you’re in the market for Palm Springs real estate.

• Get a Real Estate Agent – There’s a huge amount of data you can gather from the Internet these days including price comparisons on the housing market you’re looking into, what homes have sold for in the past and the most recent assessment value. But, despite all this information, there are several aspects of buying a home that are best done with an expert in your corner. Some of the complicated aspects of buying a home include closing on the sale, inspections and financing, according to The Wall Street Journal article.
• Know your budget – It may take a little more than on online mortgage calculator to really know how much you can afford. The process of getting a home loan is much more difficult these days. You might want to make an appointment to see a mortgage broker before you form expectations on the size of loan you can afford.
• Don’t be fooled by appearances – Make sure you have a thorough inspection done on a home you’re seriously considering buying before you take the plunge.
• Don’t be overconfident – Although the housing market has taken a hit in the past couple years, desirable homes are still attracting multiple bids. Take note of how long a home has been on the market and don’t get into a bidding war.

Check out the full article for more tips on purchasing a home and if you’re interested in buying or selling property in Palm Springs or the Coachella Valley area, Contact Patrick-Stewart Properties today.

July 2010 Foreclosure stats

It’s never good to hear about home foreclosures, but there appears to be a positive trend starting to take hold in the Coachella Valley and Palm Springs real estate market.

According to a recent study by RealtyTrac, which measures home foreclosures nationwide, the number of Coachella Valley homeowners forced into foreclosure dropped by about 41 percent in the first half of 2010 compared to the same period last year.

Although home foreclosures have fallen, home auctions rose 13.1 percent, and the volume of bank-owned properties rose about 19 percent, according to RealtyTrac.

“It seems to be showing the (foreclosure) pipeline is slowing down,” said Darin Blomquist, spokesman for RealtyTrac in a recent article in the Desert Sun. “On the other hand, you have the later stages of foreclosure still increasing.”

According to the RealtyTrac study, overall foreclosure numbers including defaults, auctions and bank-owned properties, dropped to 10,562 in the valley from January through June of this year, down from 12,007 during the first half of 2009.

Some economists, appraisers and real estate agents estimate there could be up to two to three years of foreclosed inventory in the valley market.

In addition to foreclosures and short sales, home auctions are attracting real estate buyers to the area. Bank of America and Irvine-based REDC auctioned 102 bank-owned homes late last month.

One of the upsides to the current Palm Spring real estate market is that homes are becoming more affordable to prospective buyers and there are many Palm Springs mid century homes for sale right now. If you’re interested in buying or selling property in Palm Springs or the Coachella Valley area, Contact Patrick-Stewart Properties today.

This month Bank of America will hold a live auction of more than 100 bank-owned properties located in and around the Coachella Valley.

The auction is scheduled for July 24, at the Ontario Convention Center. Only buyers who intend to live in the homes can participate in the auction.

Homes up for auction include properties in Desert Hot Springs, Indio, Palm Desert and Palm Springs.

“It gives the bidders an even better first shot at these homes,” said Colleen Haggerty, a Bank of America spokesperson who was quoted in a recent report by The Desert Sun.

Properties will be open for inspection from noon to 4 p.m. July 10, July 17 and July 18. The auction will start at 9:30 a.m., July 24. Properties that are being auctioned have been inspected, repaired and are ready for sale.

Additional information about the houses, property descriptions and photos are available here www.Auction.com/ie.

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

Sunny Lane, Rancho Mirage

As reported in the Desert Sun, June 25, 2010
Desert Sun business reporter Mike Perrault contributed to this story.

Valley real estate professionals are hoping that more activity will follow…

Mortgages are cheaper today than they’ve been in a half-century. If only most people had the job security, the credit score and the cash to qualify.

The average rate for a 30-year fixed loan sank to 4.69 percent this week, beating the low set in December and down from 4.75 percent last week, Freddie Mac said Thursday. Rates for 15-year and five-year mortgages also hit lows.

Rates are at their lowest since the mortgage company began keeping records in 1971. The last time they were any cheaper was the 1950s, when most long-term home loans lasted just 20 or 25 years.
The historically low mortgage rates were all the talk at Thursday’s weekly meeting at Patrick Stewart Properties Windermere Real Estate in Palm Springs. “We’re cautiously optimistic that the rates will spur more activity for us,” said real estate agent and partner Stewart Smith.

“The fact that we’re seeing movement in the $600,000 to $1 million (range) is positive for us,” Smith said.
But the low mortgage rates have not spurred a refinancing boom in the valley that has occurred in many other areas.

“Many people in the Coachella Valley would love to refinance, but they don’t have the equity” as house values have plummeted, said Patrick Mahon, chief executive of Franklin Loan Center in Palm Desert.
The Coachella Valley also isn’t seeing loans for the multitude of condos in the area because many condominium associations haven’t complied with Fannie Mae and Freddie Mac guidelines, Mahon said.
“They aren’t willing to conform to what the big agencies want them to do in order for them to make their condos lendable,” Mahon said.

Almost no one expects falling rates to energize the economy, though. Sales of new homes collapsed in May after an enticing tax credit expired.

“As long as prospective homebuyers are still concerned about their jobs and financial well-being, many will be reluctant to take the plunge, even though affordability has never been better,” said Greg McBride, senior financial analyst with Bankrate.com.

Rates have fallen over the past two months as investors have become nervous about Europe’s debt crisis and the global economy and have shifted money into safe Treasury bonds. The demand has caused Treasury yields to fall. Mortgage rates track those yields.

While mortgages are getting cheaper, low interest rates hurt Americans who are trying to save. Puny rates for savings accounts and CDs are especially hard on people who are living on fixed incomes and earning next to nothing on their money.

Americans normally rush to refinance when rates plummet. But refinancing activity now amounts to less than half the level of early 2009, when long-term rates hovered around 5 percent, according to the Mortgage Bankers Association. Besides, many people who want to refinance — and are able to — have already done it, said Michael Fratantoni, vice president of research and economics at the trade group. And refinancing costs can total several thousand dollars. “Rates haven’t dropped low enough to justify a second refinancing,” Fratantoni said. “The group of people who could potentially benefit is much smaller than it was 15 months ago.”

Another factor: Many Americans owe more on their mortgages than their homes are worth and can’t refinance through the usual channels.
Andy Montgomery, chief executive officer of El Paseo Bank in Palm Desert, said his bank has seen more interest from borrowers looking to buy homes in the Coachella Valley, not so much from those looking to refinance.

The Obama administration has launched programs to help borrowers refinance if they owe up to 25 percent more than their home’s value and have their loans guaranteed by mortgage giants Freddie Mac or Fannie Mae.
About 291,000 homeowners have participated as of March — a small fraction of the estimated 15 million homeowners who are “underwater” on their mortgages. And in Nevada and Florida, where home prices have fallen 50 percent or more from their highs, neither record-low rates nor government help can rescue homeowners.

“It’s not the desire to refinance. It’s the ability to refinance,” said Chris Brown, a loan officer with Trinity Mortgage Co. in Orlando, Fla.

Mahon paid $750,000 for his home in the Coachella Valley in 2003. Now he’d be lucky to get $600,000 for it, he said.

Refinancing is generally considered worthwhile for homeowners who can shave at least three-quarters of a percentage point off the rates they pay now and plan to stay in their homes for a long time.
Besides the fees for the mortgage broker or lender, there are fees for title insurance, a new appraisal, document processing and other charges. And in “no fee” mortgages, costs are often added to the loan amount or the interest rate is higher.

To figure the national average, Freddie Mac collects mortgage rates each Monday through Wednesday from lenders around the country. Rates often fluctuate, even within a given day.
Rates on 15-year fixed-rate mortgages fell to an average of 4.13 percent. That was the lowest since at least 1991 and down from 4.2 percent a week earlier.

Rates on five-year adjustable-rate mortgages averaged 3.84 percent, down from 3.89 percent a week earlier. That was also the lowest on Freddie Mac’s records, which date to January 2005 for those loans.
In the Mesa area of Palm Springs, there have been very few sales of houses priced over $600,000 in recent months, Smith said.

Low mortgage rates were likely a factor in three $600,000- plus homes going into escrow over the past week, as well as a big improvement in overall home sales for the Windermere brokerage.
“It was on the high side of what we generally see for overall total volume,” Stewart Smith said.

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

Here’s some good news for the struggling US housing market: Thanks to the European debt crisis, mortgage rates are at historic lows.

The current average rate for a 30 year fixed loan is 4.87 percent, according to Bankrate.com. That’s the lowest rate for the 30 years since Bankrate started keeping track 25 years ago.
Even jumbo loan rates—loans for more than $417,000—have fallen. The 30-year fixed jumbo loan is at an average rate of 4.5 percent, down from nearly 6 percent at this time last year.
“It’s the best time in our generation to buy,” says Mark Zandi, chief economist at Moody’s. “It may be the best time in any generation. Mortgage rates are so low and with homes prices down and lots of inventory, you couldn’t pick a better time to buy or re-finance.”

Europe’s debt crisis is behind the drop. Nervous investors are flocking to the security of US Treasurys, which pushes down their yield and influences a host of consumer interest rates—including those on mortgages.
The decline is also good news for homeowners looking to refinance, particularly those who owe more on their mortgage than their house is worth.

“There’s a tremendous window on re-financing,” says Greg McBride, chief economist at Bankrate.com. “That’s particularly true for people who can take advantage of the government’s Home Affordability Refinance Program (HARP)—which allows home owners to refinance into low mortgage interest rates even if they’re property value has gone down.”
HARP, which was due to end at the end of this June, now runs through June of 2011.

“Think of the benefits if you buy or refinance now,” says McBride. “Locking in now at the lower rates means more more bang for the buck and more breathing room for homeowners when it comes to payments.”
But the decline in rates probably won’t last long, analysts say. So homeowners need to move fast.
“I think they won’t last much longer than a month or two at the best,” says Lawrence Yun, chief economist at the National Association of Realtors. “I can see them going up to 5.5 percent by the end of June if not sooner.”
The reasons? Yun says the worries over Europe will be fading soon and investors will be looking at other assets besides US Treasurys. And there’s the US deficit, which will push up Treasury yields.

“The US is fortunate now that there’s no pressure on interest rates,” Yun goes on to say. “But going forward, higher rates will be needed for financing the debt.”
Zandi agrees. “Yes, I can’t see these rates being this low in three to four weeks,” Zandi says. “Investors will settle down and this current crisis (Europe) will pass and the focus will be back on US debt. It’s really a now or never type of proposition, when it comes to getting these types of historic rates.”

Patrick Jordan and Stewart Smith are Executive Premier Directors with Windermere Real Estate in Palm Springs. Interested or buying or selling property in Palm Springs or the Coachella Valley area? Contact Patrick-Stewart Properties today.

Liberace's Palm Springs mansion

The 7,000-square-foot Palm Springs mansion formerly owned by entertainment legend Wladziu Valentino Liberace – known best simply as Liberace — recently sold for more than $1.2 million.

Liberace bought the mansion in 1967. The sprawling home has seven bedrooms, eight baths, a two-story bell tower, mirrored dressing area and a powder room. It is located at 501 N. Belardo.

After Liberace died, the estate was purchased in 1988 for $750,000.

In recent years, the home has been on the Multiple Listing Service for prices as high as $2.8 million. Who purchased the mansion is not being divulged.

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

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.