Per the Bloomberg News report today, the number of Americans signing contracts to buy previously owned homes climbed 6.7 percent in April, more than forecast and the fourth increase in five months, as lower prices attracted buyers. The gain in the index of signed purchase agreements, or pending home resales, was the biggest in more than seven years
These numbers are consistent with the market in Palm Springs area as well. Sales have steadily increased each month in 2009, from 664 sales in January to 933 in April.
This report also states that the market may have already bottomed in some areas, and that this is an unusual housing cycle with some areas improving rapidly. The National Association of Realtors reported last week that home resales increased 2.9 percent in April, suggesting that the industry's slump, now in its fourth year, would end in 2009. The most pronounced sales gains have been in California and Florida where foreclosures have surged, indicating the drop in prices has stimulated demand.
We're definitely experiencing this in the Palm Springs area as well. More buyers consistently enter the market and are shopping for homes. The problem we're having these days, is lack of inventory in the lower price ranges.
These days, if a single family property hits the market in Palm Springs for less then $200,000, you can almost guarantee that there will be multiple offers and it will sell for over asking. This past week, again, I had two buyers submit above asking, all cash offers on properties....they were outbid both times as there were over 10 offers on each property.
All the reports and recent activity indicate a strong surge in not only the National real estate market, but also Palm Springs.
For all those buyers that I've worked with that have been on the fence, now is the time to act!! I think we have a short window of opportunity to pick up homes at rock bottom prices..this appears to be changing quickly! Just remember, be patient too! There's a lot of competition out there for well priced properties- you may have to submit multiple offers before you finally are awarded a deal...but at the current prices, it will be worth the efforts.
To read the full article, click the following link:
http://www.bloomberg.com/apps/news?pid=20601103&sid=aUox8hHm9OqY&refer=news
If you'd like more information on the Palm Springs real estate market, please contact me at www.PaulKaplanRealtor.com or call 760-285-8559.
Paul Kaplan
Pacific Union GMAC Real Estate
760-285-8559
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