What Does a BUYERS MARKET in Palm Desert Really Mean?
What does a buyer’s real estate market (in Palm Desert, La Quinta, and/or Indio) mean? If it’s a buyers market in Palm Desert it must mean that seller's are desperate to dump their home and willing to give the home away for pennies on the dollar. Right?
I put the test to Google and came across a website called investorwords.com. The website defines a buyers market as a market which has more sellers than buyers. Low prices result from this excess of supply over demand. Also called a soft market. Opposite of seller’s market.
What is the reality of the buyers market in Palm Desert and the surrounding cities of the desert like La Quinta and Indio?
1. Buyers believe foreclosures and short sales will be here for another 5 years if not longer, what’s the rush? Yes foreclosures and short sales have become a staple of today’s real estate market in Palm Desert, La Quinta and Indio; however, the distressed inventory is decreasing. The Desert Sun reported Friday that Bank-owned properties for sale during September fell to 424 in the valley while another 274 sold during the month and 322 sales were pending. That compares to September a year ago, when 694 bank-owned homes were for sale, another 284 sold and 286 sales were pending. Buyers should realize the deals of foreclosures and short sales will not last forever.
2. There is a lot of inventory in a buyers market. Yes this is true but just because there’s a lot of inventory doesn’t mean there are a lot of “good” homes available. Distressed properties are not always left in move-in condition. Short sales are often left abandon with no yard maintenance for months on end and the home without proper maintenance. Foreclosures are sometimes missing appliances or A/C units. If the home is a “good” home that is priced competitively you should expect multiple offers.
3. Everyone wants a deal! So do I and so does the guy next door. That means if the home is in good shape, in a good neighborhood, and already priced for a deal it will no doubt have multiple buyers bidding on the property. Expect such a property to go for more than asking price.
Ultimately buyers should realize this real estate market is an amazing time to being buying a home in Palm Desert, La Quinta and Indio. Prices are lower than they were 10 years ago!! In some cases the homes are selling for 50-60% what they sold for six years ago. How often do you come across opportunities like that?
If you think the market will drop more, what’s it worth to you if it doesn’t? Interest rates are the lowest they have been since I’ve been doing real estate!
I think if you are able to buy a home in this market, you are a lucky individual because if you look at the other side of the coin – at the buyers who bought 5 or 6 years ago and are either short selling their home or have already lost it to foreclosure and have to wait 3 years before they will be able to obtain financing – you will realize the value in today’s real estate market.