The Desert Sun reported today: "Coachella Valley home sales during the third quarter of 2008 jumped 51.5 percent compared to 2007, driven predominately by buyers nabbing foreclosures and other distressed properties that have been sharply discounted."
Bargains for buyers: Although sales are up, averge prices are down. This is partly a result of banks wanting to unload the numerous foreclosures currently on the market. Those that don't have to sell, are holding off. However, motivated sellers are having to meet or beat the foreclosure pricing in order to be competitive. Over half of all homes sold recently were foreclosures. The end result, is that the median pricing for homes, has come down more then $150,000 in the Palm Springs area.
The Desert Sun also reports: "[Sales are] up from the 1,277 sold during the same three months of 2007 and up from 2006, when 1,665 homes were sold. The bulk of homes sold are going for less than $500,000, a price point that traditionally has been described as the entry-level market. In 2007, homes priced under $500,000 made up 68 percent of all local sales. In the third quarter of 2008, they accounted for nearly 85 percent."
Smart buyers are taking advantage of the current pricing in Palm Springs. The current reduction in pricing, is now making it more affordable for both first time buyers and those looking for a second home. Buyers are picking up homes that sold for $400,000 to $600,000 just two years ago, for $200,000 to $300,000- Once gain it is affordable for some to consider owning a 2nd home here in the desert.
Canadians are still buying, even though the value of their dollar has fallen. Many are wanting to take advantage of this window of opportunity, before their dollar falls even further. 50% of my sales lately, have been with Canadian buyers.
Pricing is attracing many savvy buyers. Although prices are being offered at huge discounts, sales are very competitive. Many homes these days are receiving multiple offers, and homes have been selling for over asking price. On average, homes are selling for about 94% of the asking price, but it is not uncommon to see homes selling for even more then asking. If you are considering buying, the important pre-requisite is to have your financing in order. Its important to have your realtor watch the market constantly. Bargain priced properties often go pending within hours of being listed.
If you're thinking of taking advantage of current market condition, please give me a call. I'll help you get prepared to make a purchase. I monitor the market all day long searching for great deals, to match up with my clients. Let me show you how I can help you too!
Paul Kaplan
760-285-8559
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