Today our desert real estate market sales activity continues at a brisk pace, as it has for the last 18 months. Today’s desert real estate market can best be summed up as the perfect storm for investing in a second home. Prices are at decade level lows and interest rates are at historic 40 year lows. In the last 6 months we have experienced a trend of sales prices increasing throughout the desert market, up 3 – 6% year over year, depending upon the city and neighborhood. Buyers and investors continue to pick up great deals and our sales activity indicates we are at the beginning of real estate recovery.
The total average number of all Active listings in the Desert Area MLS is typically 7,500 units. Today, the current Active listing inventory is less than 2,400 units available for sale, 1,000 units LESS than when we last reported this same statistic in our October 2012 Newsletter. 2,400 listing units is considered very low for the desert real estate market. We are experiencing multiple offers on well-priced properties that present a good value. Again, prices have begun to increase in certain zip codes and neighborhoods.
What does this mean for our Buyers?
For our Buyers, we believe there has never been a better time to invest in our desert real estate market.
1) If you are all Cash, great, but it is best to have all your funds liquid in a U.S. based bank or money market account and be prepared to tender a proof of funds statement at the time of writing your offer, as proof of your ability to perform on the contract and for the Seller will take your offer seriously.
2) If you are using a mortgage it is best to complete a double loan application and obtain a Pre-Approval Letter with two different lenders or mortgage brokers so you have a Plan A and Plan B. In the event Plan A falls apart in the 10th hour of your escrow, which is common today, you can go to Plan B to complete your purchase and not lose your Earnest Money Deposit due to non-performance on your purchase agreement.
3) Be prepared to move very quickly on a property you like due to the strong competitive nature (many buyers or all cash investors, multiple offers) of our local market. If you live outside of the Coachella Valley, you may want to consider having your Realtor preview the property, report back and if it matches your search criteria, then write an offer, with a term in your offer “subject to your personal inspection of the property,” to secure the property, before it goes to someone else. In short, if you snooze, you lose and someone else will get your prize.
4) Follow the professional advice of your Realtor. Writing the accepted offer in today’s highly competitive buying environment of multiple offers and short sales is an art form. Knowing which terms of the contract to shorten or eliminate to position YOUR offer to be the selected one from many offers, by the Seller, is key.
Contact Scott + Jim Homes Team today to learn more about our fast moving desert real estate market, and to discuss putting together a strategy for you to take advantage of our current market.
Kim Giandalia Selling Homes In Palm Springs, Rancho Mirage, Palm Desert, Indian Wells,