Palm Springs Area Real Estate - Low supply of inventory working in favor of sellers and new home builders

By
Real Estate Agent with Ronald Christopher & Associates. Proudly serving Palm Desert, La Quinta, Indio, Rancho Mirage, & Palm Springs. DRE# 01714898
https://activerain.com/droplet/FQv

Palm Springs Area Real Estate - Low supply of inventory working in favor of some sellers and new home builders.

Palm Springs Real Estate MarketWhat's happening in Palm Springs area real estate? Seems like we might be seeing some positive signs and moving more towards a "normal" real estate market; a positive change at least for sellers and new home builders in the Coachella Valley. 

The Coachella Valley has reached a low supply of inventory of homes working in favor of some sellers and new home builders. Inventories of resale homes in the Coachella Valley have dropped to a 3.9 month supply, the lowest level in many years.  

What's happening? Is the economy getting better? A panel of experts at last week's Desert Valleys Building Association economic update meeting declared "housing the best bet for new growth." For Riverside & San Bernardino counties, construction jobs peaked in 2006 at 127,500 jobs, which now stands at a mere 56,100 jobs five years later. 

What we are seeing here in the Coachella Valley and the Palm Springs area are developers buying up residential lots at stalled or foreclosed housing projects that have sat over the last few years. With inventories declining in communities priced below $200,000, we will probably see more new homes being built in the next year or two.

Projects recently purchased and in the works are:

La Entrada - 2200 acres south of I-10 and east of the All-American CanalHow much is your home worth near Coachella was recently purchased by one developer. The area was previously slated for 9000 new homes.  

Alta - Toll Brothers has purchased this project in Palm Springs, as well as lots in Rancho Mirage.

Griffin Ranch - Toll Brothers has partnered with another developer, Oak Tree, in finishing Griffin Ranch, an equestrian community in La Quinta.

Villa Portafino - Family Development has been purchasing up stalled projects throughout the valley. Villa Protafino is a 55+ community of condos in Palm Desert.

Escena - A Beverly Hills developer, the Alta Verde Group, acquired this development in Palm Springs.

Other promising projects in the Coachella Valley include the $434 million renovation at College of the Desert and its satellite campuses. The University of California Riverside desert extension is also promising to bring in a freshman class to start a full 4 year program available in the desert for the first time. In retail projects, a national retailer is expected to take over the recently vacated Borders location at The River in Rancho Mirage.

The Desert Valleys Building Association panel concluded with suggestions that new home construction could double by next year, accounting for about 14 - 15 percent of home sales.

Do you have more questions on the Palm Springs and surrounding Coachella Valley? For more information on the real estate market in the Palm Springs area, please feel free to contact me.

Source: The Desert Sun, The Valley Economy: Construction. Panel: Housing the best bet for new growth. 4/13/12 

 Palm Springs Single Family Homes l Palm Springs Short Sales l Palm Springs Foreclosures

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Market Trends
Tags:
market update
market report
construction update

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,993,796
Ronald DiLalla
Century 21 Discovery DRE 01813824 - Anaheim, CA
No. Orange Cty Real Estate

Hi Tina, we have seen a dramatic drop in inventory here in North Orange County also.tks for sharng with us.

Apr 17, 2012 08:42 AM #1
Ambassador
1,885,237
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Tina, 3.9 months is very low. In our area we are heading to 5 months which is great thanks to new homebuilders going out of business. Yours must be sellers holding off selling, not enough new construction fast enough by the developers and an influx of buyers. Good for sellers.

Apr 17, 2012 09:19 AM #2
Rainmaker
622,890
Morgan Evans
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

I think there is a trend in a lot of places where low inventory levels are becoming more common, we definitely see it here in a lot of neighborhoods in Manhattan.

Apr 17, 2012 10:03 AM #3
Rainmaker
919,799
Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA

Good for you - I just did a saturation study on my area and it was 18 months! UGH . . . not a chance ot if being a sellers market for quite some time.

Apr 17, 2012 10:50 AM #5
Rainer
55,353
Christine Blaski
Cornerstone Real Estate - Frisco, CO
Frisco, Summit County CO Realtor
Great news to hear about the improvements in your area. The community I live in typically lags behind the national market, mostly the Denver area. There has been increased interest in homesite sales lately but our inventory is still high on an average. The best to you.
Apr 17, 2012 12:22 PM #6
Rainmaker
490,593
Lorraine or Loretta Kratz
Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA
Certified Negotiation Consultants

Glad your market is picking up, and things are improving. I see signs of the market turning for the positive in San Diego also.

Apr 17, 2012 01:22 PM #7
Ambassador
910,866
Kathy Schowe
California Lifestyle Realty - La Quinta, CA
La Quinta, California 760-333-8886

Great local post Tina-- it is great to see some positive movement.  Miss seeing you-- hope you had a great first quarter!  K

Apr 17, 2012 01:28 PM #8
Rainer
14,017
Jason Maneely
HomeSmart - Prescott, AZ

We are seeing the same thing here the central Arizona area.  Multiple offers are becoming the norm again.  Very frustrating for the first time home buyers getting beat to everything by the investors with cash.  Our inventory is half of what it was at it peak and continues to fall.  I thinks it's time for our spec builders to re-enter the market!!

Apr 17, 2012 03:23 PM #9
Rainmaker
560,352
Rob Spinosa
Guaranteed Rate, Marin County, CA - San Anselmo, CA
SVP of Mortgage Lending, Marin County

Happy to see positive signs in the Desert.  While I know the downturn of the last few years provided great opportunities to some, it did so at a very high price to others.  It will be good to see "normalization" and value underpinning of the broader market for sure.

Apr 17, 2012 10:45 PM #10
Rainmaker
1,392,577
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Tina, an excellent assessment of the Palm Springs Area Real Estate. Nice Post!

Apr 18, 2012 12:42 AM #11
Rainmaker
2,516,446
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The desert has always been a great place to buy...slowly but surely it holds

Apr 18, 2012 12:42 AM #12
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
497,414

Tina D Saporito, Your Dedicated Palm Desert, CA Realtor Since 2005

Call (760)799-8460. www.JustListedinPalmDesert.com
Which neighborhood are you interested in?
*
*
*
*
Spam prevention

Additional Information