As with every other area around the country, the Coachella Valley region saw a near-record number of sales over the past 27 months. While this is encouraging, it is discouraging considering the fact that many closed at incredibly low prices.
If you are a first-time buyer, there has never been a better time to buy. There has been an increase in first-time buyers by 47 percent compared to all home-buyers. And even if this is not your first time around the block, it is still a tremendous time to look into the real estate market.
It is believed that sales prices will continue to stay at the low mark they are at in 2010. While this is promising for home buyers, this means agents will have to close more deals then they did two to three years ago just to see the same business thresholds.
It is forecasted that sales will be sluggish in the mid- to upper-level home market. Coachella Valley and other parts of the country will face some troubling times as homes will see a significant decline in overall value and equity.
Homes that used to be around the $800,000 mark are now falling below the $500,000 mark. As you might expect, this is attracting many first-time buyers with the incredibly affordable home prices on remarkable homes. Not only is this appealing to first-time buyers, but it is also the perfect opportunity for people to move up into a larger home.
What some are taking advantage of is selling at a 5 percent hit and then buying a home for 10 to 15 percent off. People are wheeling and dealing any way they can to take advantage of the market.
One thing is for sure; the market is still healing as there are countless issues that remain relevant. Something that has become quite common today is cash buys due to the low prices. In addition, real estate agents are becoming familiar with multiple bids as many buyers will place a bid on several homes hoping to get one.
In 2006, 40 percent of all homes sold below the asking price. Today, that number is at a staggering average of 80 percent creating a long-run average of 69 percent. These kinds of numbers make it incredibly difficult to predict where the market will be in five years.
Anyone can throw a book of statistics out there and hope for the best. However, it is the plan of action and what really happens that is going to matter. Right now statistics show incredibly low prices on homes for sale resulting in a tremendous surge in home buyers.
Add onto the equation the tax credit that is good until at least November 30 and you have first-time buyers jumping at every home they can. It is even a promising market for people looking to move from one home into a larger home due to the fact that once high-priced homes are selling for average prices.
While all is good for home buyers, there really is no say where the real estate market will be down the road do to the inconsistent and constantly changing industry today.