The supply of homes for sale from Palm Springs to Indio continues to shrink, causing major repercussions for buyers and reducing total sales.
Virtually every buyer client I have worked with this year who assumed they are in a buyers market sobered up real fast when I explained the dynamics of our current market.
Yes, prices are still low, interest rates are better than ever, the sun is still shining and Palm Springs real estate is still a great investment. The problem is there are hardly any houses for sale!
Wise investors have been buying up properties here in the desert at bargain prices for the past couple of years while those who were less sure of the market stayed on the sidelines. At the same time, people who would like to sell and under normal circumstances would sell, are not doing so because of negative equity. They don't want to take a big loss and are waiting for prices to go up.
Banks with large portfolios of foreclosure and pre-foreclosure properties are doing the same, hoping to see a spike in Palm Springs real estate prices. This is true throughout the other desert cities and in fact inventories have declined drastically nationwide.
In searching for properties for clients locally here in the desert, when we find the perfect house or condo, we find we're not alone. Most listings that are priced right receive multiple bids within 24-48 hours of coming on the market. One listing agent in La Qunta that I spoke to told me she had received over 30 offers on her listing!
In this environment it is important to work with an experienced agent. We know methods that can improve your chances of getting the property you want, such as incorporating shorter escrow periods, higher down payments, early release of contingencies, shorter inspection periods, escalation clauses and personal presentation of your offer to the seller.
So, what's in store in the near future for Palm Springs area real estate? Most agree that seems to be more of the same. I would expect prices to to rise eventually as demand outweighs supply. Those price increases should gradually send us to a newer phase of the real estate cycle, increasing owner's equities and encouraging more of them to list and sell.
To stay informed and up to date with what's going in with real estate in the Palm Springs area, subscribe to my blog (http://activerain.com/blogs/dwatkowski) and ask to receive my weekly news updates and monthly newsletter. You can call me at (760) 861-0625 or check me out online at http://www.YourDesertHomes.com/about/
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