Read this article in the LA Times and it pretty much states what I am seeing on the La Quinta and Palm Springs Valley streets. The entry level housing market actually is increasing in it's price/sf, the mid-tier homes are moving at close to List Price, million dollar properties are selling if their Views and sun-orientation is maximized..but what about the Luxury home market?
The luxury market here in the desert would be the homes priced over 1.5 million all the way up to 18 million and above. What is happening with these homes? When I have been lucky enough to write luxury contracts, they have been turned down by Sellers that are convinced their homes are better than everyone elses..sound familiar? That used to be EVERY seller in EVERY price point 18 months ago.
The spectaculary high priced estate properties are an animall all their own, but homes that are in areas that have not found their "floors" are still sitting. Short Sales and Foreclosures are seeping into their communities..when there are more of them, it will be easier to convince a Seller that that IS that bottom and Buyers that they need to pay "X/sf" because it's backed up by recent sales.
The Luxury market "floor" is not firm yet here in Palm Springs, La Quinta, Rancho Mirage and Indian Wells. I went on a luxury Equestrian property listing in Garner Valley and though spectacular, it would be the highest priced property in the area..and we all know that creastes some issues of it's own!
How is the Luxury Market in your City doing?
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