Palm Springs offers tremendous opportunity in residential real estate compared to other California real estate markets. If we look at Los Angeles and Orange County, we see there are not many foreclosures available. This is because those areas were pretty much built-out before 2005 and 2006 when the irrational exuberance took place at the top of the real estate bubble. Still, the prices are off from the 2006 highs by as much as 35% in some areas and it could be 8 or more years until they return to those highs again.
There are many good deals on the foreclosures in places like Riverside, Las Vegas and Phoenix real estate markets, but the worse there is still yet to come say bankers and real estate brokers in those markets. These were some of the fastest growing real estate markets during the top of the bubble and folks who bought into these areas in 2005 and 2006 are most likely $75,000 to $100,000 in negative equity, they are totally upside down.
Buying into these areas now where 10% or more of the homes are in foreclosure or soon to be would be a bad financial mistake, no need to take that hit, those already in peril are in deep troubles. Worse, in some new tracts where of 250 to 500 homes there might be as many as 25 to 50 homes on the market, meaning the supply outweighs the demand by so much that no one will be able to sell their home for anything of worthy consideration.
The sum of all homeowner's fears, and a buyer now thinking that this is the bottom will soon find out, that they too will take another 25% equity hit - ouch! Palm Springs on the other hand has a constant flow of new buyers coming into the area, snowbirds who have decided to stay and live all year. Why; well because everyone loves Palm Springs, it is in demand and thus, the Palm Springs Real Estate Market has opportunity, value and your American Dream written all over it.
Riverside County, CA is in dire straights if you look at the numbers over all, and yet when you look at the micro-economics of the Palm Springs real estate market, you see something totally different. Things have already hit the bottom and are starting to inch up, leading many of the top real estate analysts to publicly state; there is a slight window of opportunity available for the smart or prudent real estate investor right now. Palm Springs is looking up, not only at the beautiful snow on the mountains, but also to a return to a robust real estate market. Get that new home before things get hot once again and you miss that once in a lifetime opportunity.
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