A key, national index of home prices saw significant gains this January, with California cities showing price increases from San Francisco to Palm Springs.

According to the Standard & Poor’s/Case-Shiller index of 20 metropolitan areas, home prices nationwide rose 0.3 percent from December 2009 to January 2010 on a seasonally adjusted basis, marking the eighth consecutive month of home values improving or at least holding steady.

Prices across California are up almost 4 percent from the bottom in May 2009, but still almost 30 percent below the May 2006 peak, according to the report. The Coachella Valley, including Palm Springs and surrounding communities, saw some of the largest gains in the state.

According to the local California Desert Association of Realtors, the Coachella Valley’s real estate market reported a 14.8 percent jump in median home price in February compared to January. In the same period, the valley posted a monthly sales gain of 5.6 percent.

The valley’s median home price in February also rose to $179,090 — up from $156,000 in February 2009, according to the California Desert Association of Realtors.

“It’s good news,” said Scott Newton, a real estate broker and president of Palm Springs Regional Association of Realtors, who was quoted in an article that appeared in The Desert Sun on March 31. “The market is starting to balance out.”

California home sales will likely get an additional boost in coming months when a new government stimulus package is enacted.

State lawmakers recently passed a tax credit of up to $10,000 for homebuyers beginning May 1. The state allotted $100 million for first-time buyers and another $100 million to help those who purchase newly built homes.

The state-wide tax incentive take over just in time as the federal first-time homebuyer tax credit of up to $8,000 is scheduled to expire at the end of April.

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

Each year for the past five years, Palm Springs Realtors, architects, historians, developers and residents, have celebrated Modernism Week as a way to acknowledge the unique and influential design of the Palm Springs community.

Modernism Week, which began in 2006 as an outgrowth of the Modernism Show, is a celebration of mid-century modern design, architecture and culture.

This year, Modernism Week kicked-off on Feb. 12. The event is filled with a variety of events including architecture tours, films, lectures, an architecture symposium, educational events as well as parties in many of the mid-century modern homes that define our community. The event extends through Feb. 21.

Homes like this architectural gem by Palm Springs architect James Cioffi, and this timeless Old Las Palmas estate designed by decorator Vance Burke are just two examples of why Palm Springs and the Coachella Valley are world renowned not only for their architectural history, but their spectacular climate, natural beauty and uniquely enviable lifestyle.

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

According to the California Association of Realtors (CAR), Palm Springs and the Lower Desert continue to rank high on the state’s affordability index for first-time home buyers. Affordability increased to 74 percent of prospective first-time home buyers in 2009.

According to the report, this is significantly higher than the statewide average affordability index of 64 percent and comparable to an overall affordability index in the United States of 77 percent. An affordability index of 74 means 74 percent of individuals or families looking to purchase a home in the area can afford the average monthly payments for a Palm Springs/Lower Desert median priced home of $172,320. CAR calculated the median home price in December 2009.

CAR’s affordability index is calculated based on the total monthly payment a household would be expected to make on a median priced home (including taxes, principal, interest and insurance). In order to be considered “affordable,” the total monthly payment has to be less than 40 percent of a household’s income.

The median household income for California residents is about $57,014, according to the latest figures from the U.S. Census Bureau. So, a household earning $4,751 per month could afford a total monthly payment of about $1,900 a month, which puts the Palm Springs/Lower Desert median priced home well within reach.

Palm Springs/Lower Desert ranked as the fourth most affordable region of the state compared to 15 other regions. Only Sacramento County, Riverside/San Bernardino and the High Desert scored better.
San Louis Obispo County was ranked the least affordable at 48 percent affordability.

For more information about the CAR study, visit: http://www.car.org/marketdata/marketdata/ftbhai/.

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

1. Do not blindly trust the person who comes out to appraise your home.

Ultimately, it’s up to you to make sure your Palm Springs home is not valued below your sale price or loan limit. Many banks have recently been put under scrutiny for pressuring appraisers to inflate property values. As a result, banks are now required to work with independent appraisers in an effort to stop buyers from overpaying. However, some appraisal-management companies hire employees who get the job done quickly and cheaply. You want to have an appraiser who knows the area best and takes their time to do a quality inspection.

Photo by Karol

2. Prepare your home the same way as you would for an open house.

Remember, it’s the appraiser’s job to look at your house through the eyes of a buyer. Keeping that in mind, take a step back and see if your house has that curb appeal to attract buyers, and tidy up inside so it is presentable.

3. Do your research.

A main factor in your house’s appraisal is the recent sales prices for houses comparable to yours. Appraisers may not know if there are any unusual circumstances behind those numbers however, so it’s important to investigate yourself and see if you can provide additional information. Ask your neighbors about the circumstances of the recent sales. Also, ask a Palm Springs Realtor to help you identify the latest comparable sales in your neighborhood.

4. Write a “house resume” to give to the appraiser.

Appraisers are busy and usually on a time schedule, so they may overlook some of the best features your home has to offer. Before he begins his inspection, hand him some information on its best characteristics, including:

• any recent upgrades (new windows, any custom work)
• property perks (views and landscaping)
• neighborhood benefits (schools, shopping, public transport)

5. Follow up and double check the report for any errors.

Lenders are required to give you a copy of the finished report. Make sure you request a copy, check for errors and make sure comments accurately describe your property. If you do happen to find a mistake, contact the appraiser directly and politely ask him to recheck his work. If he is not willing, file your complaint with the California real estate appraisal board. While your lender cannot meddle with the appraisal directly, it’s worth letting them know about your complaint as well.

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