Five Years After the Frenzy-- Affordability on the Rise in the Desert

According to todays Desert Sun--

The real estate world was very different in the Coachella Valley five years ago. Prospective buyers streamed through model homes while real estate agents poked pins onto maps to reflect constant sales — some posting $10,000 price gains by the month.

Phones rang incessantly. Common were bidding wars, waiting lists, lotteries and house-flippers, the latter often cashing out six-digit profits.

It was fast and frenzied in 2005 as price seemed to be no object and affordability dissipated, squeezing many families out of the market.  Prospective buyers streamed through model homes while real estate agents poked pins onto maps to reflect constant sales — some posting $10,000 price gains by the month.

The picture is a stark contrast to today's market — still recovering from the recession — though optimistic signs are returning.

“Entry-level homes continue to dominate the (valley's) market,” said Patrick Veling, president and founder of Real Data Strategies Inc., which provides and analyzes real estate data for The Desert Sun.

Price trumped the valley's home sales activity in 2009, the Brea firm's new data show.

The data, filtered from the Multiple Listing Service, market activity in key valley areas show that:

• Sales are up 25 percent compared to 2008.

• Overall sales volume is down 15 percent.

• Of 9,238 total home sales, 8,204 sold for $500,000 or less.

• The average sales price of homes below $500,000 was $182,369. That was 22 percent less than in 2008, when the average sales price was $236,160.

• The sale of homes priced from $500,000 to $750,000 fell 21 percent.

• Of 9,238 total home sales, 452 homes sold above $750,000.

Prices are so low that prospective buyers with cash, a “golden” credit record, resilient investment portfolio and job security are swooping in to snag homes at prices not seen in nearly a decade.

For more info from the Desert Sun on the real estate market in the desert click HERE!