Palm Springs Real Estate

Due to the strong real estate values in Palm Springs, Palm Desert, Indian Wells, Rancho Mirage and La Quinta, the housing authority and local governments of the Coachella Valley are working hard to find affordable housing in nearby areas such as Thousand Palms, Indio, Desert Hot Springs and in unincorporated areas.

Recently, there was a meeting of the minds in the Coachella Valley to determine how best to address this need. You see, the current average median housing price in many of the more elite cities such as Palm Desert, La Quinta and Indian Wells was approaching $400,000 and that made it tough for working families in the area to find suitable housing. Without that labor force, the cities would find themselves in trouble trying to service the local residences.

As you probably guessed the Indian Casinos nearby, the 5-Star Resorts, 200 Golf Courses, Restaurants, require a lot of labor, as do all the service companies, everything from auto detailers to pool maintenance people. It is a serious issue. Luckily, this are coming together fine and these critical issues are now being addressed; thanks to CVAG - Coachella Valley Association of Governments, which sponsored a huge get together, which included school administrators, hospitals, Realtors, Indian Tribe leaders, builders, developers and some 85 people in all.

The symposium took on the bigger picture as well with the sub-prime lending regulations and tightening, which would now make it tougher for working families to get into homes. Especially those with young families, trying to make ends meet. This is of interest to me personally, as I know that our Valley and the great life style we enjoy is also predicated on a strong labor pool to service all the businesses and wealth in the Valley.

Many of my clients come to retire here in the Coachella Valley and soak up some of this great weather and wonderful ambiance. The standard of living here is unmatched and it is important that everyone is able to find a home. These folks with less funds to buy a home now, will eventually save and secure property labor. There are no shortage of jobs here, anyone who wants to work can easily find a suitable job to match their abilities, skills and the amount of work they are willing or interested in taking.

Many retired individuals here choose to work part time, just to stay active, socialize. Some volunteer and that is one reason our cities here are so great. Volunteer-ism in our area has some staggering statistics. It is wonderful to see the sense of community here, it makes me smile and it is fun to shop knowing that the folks there are happy to be working.

When I saw how many people attended the CVAG meeting on housing, it made me think, how well we all work together here in the Coachella Valley, it makes me so proud to live and work here. I love helping my clients find their dream homes where they can relax and enjoy this wonderful community we have built. I welcome them all.

Palm Springs offers tremendous opportunity in residential real estate compared to other California real estate markets. If we look at Los Angeles and Orange County, we see there are not many foreclosures available. This is because those areas were pretty much built-out before 2005 and 2006 when the irrational exuberance took place at the top of the real estate bubble. Still, the prices are off from the 2006 highs by as much as 35% in some areas and it could be 8 or more years until they return to those highs again.

There are many good deals on the foreclosures in places like Riverside, Las Vegas and Phoenix real estate markets, but the worse there is still yet to come say bankers and real estate brokers in those markets. These were some of the fastest growing real estate markets during the top of the bubble and folks who bought into these areas in 2005 and 2006 are most likely $75,000 to $100,000 in negative equity, they are totally upside down.

Buying into these areas now where 10% or more of the homes are in foreclosure or soon to be would be a bad financial mistake, no need to take that hit, those already in peril are in deep troubles. Worse, in some new tracts where of 250 to 500 homes there might be as many as 25 to 50 homes on the market, meaning the supply outweighs the demand by so much that no one will be able to sell their home for anything of worthy consideration.

The sum of all homeowner’s fears, and a buyer now thinking that this is the bottom will soon find out, that they too will take another 25% equity hit - ouch! Palm Springs on the other hand has a constant flow of new buyers coming into the area, snowbirds who have decided to stay and live all year. Why; well because everyone loves Palm Springs, it is in demand and thus, the Palm Springs Real Estate Market has opportunity, value and your American Dream written all over it.

Riverside County, CA is in dire straights if you look at the numbers over all, and yet when you look at the micro-economics of the Palm Springs real estate market, you see something totally different. Things have already hit the bottom and are starting to inch up, leading many of the top real estate analysts to publicly state; there is a slight window of opportunity available for the smart or prudent real estate investor right now. Palm Springs is looking up, not only at the beautiful snow on the mountains, but also to a return to a robust real estate market. Get that new home before things get hot once again and you miss that once in a lifetime opportunity.