Reflections on the Desert Real Estate Market

“What’s going on in the Desert Market Place in March 2007?


From time to time on my blog, you will find my personal observations regarding the state of the real estate market in Coachella Valley – Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, La Quinta, Sun City and Indio, e.g. our local market.

These are derived from both my personal experiences in the field, observations and studies of data out-puts by various groups. These comments and observations are meant to be just what they are, my views and feelings on current market conditions.

The information in this space is not to be deemed a comprehensive study or absolute conclusion on the subject, but a timely snapshot of local conditions that will, hopefully, be of interest and of value to you, whether as a buyer or seller of residential real estate in the Coachella Valley cities.

Additionally, by visiting the “Latest News” button on my web site, you will also find selected articles on our specific market from the experts, the local newspaper, and assorted pundits.

Barry

March 1, 2007

Market Conditions are a Matter of your Perspective

Despite numerous headlines trumpeting a market recovery, a slump continues for some people.

After reading the upbeat article that appeared in the Desert Sun on February 11, 2007, entitled "Housing not really in slump", I offer my comments and observations.

If you are familiar with the ageless real estate adage: "What's the difference between Recession and Depression? Recession is when your neighbor is unemployed; Depression is when you are unemployed!" your perspective is determined by your own situation.

So, if you are active in the real estate market today, it's the same thing. If you are a buyer having finally found your dream home at what seems to be a bargain price aka “steal”, things look pretty good.

On the other hand, if you are a seller whose home is still on the market after nine months and if, in spite of several price reductions, you still don't have an offer, the market is definitely depressed.

Or, if you are a buyer looking for an affordable home in an attractive neighborhood and after searching for months, still haven't found anything, the market is still in a slump.

Simply stated, this is the point; it's not helpful to generalize or oversimplify as to what is happening in the real estate market here in the Coachella Valley. The market appears to be improving, albeit in some areas more than others, so let's be patient a little longer before drawing any conclusions.

When engaging in this type of exercise of market conditions, one should look carefully at conclusions that are based upon "statistical averages", especially if they are national or regional in scope. In many cases, they may not be relevant to your specific situation.

All real estate markets are local in nature. Whether you are buying or selling, get the facts and evaluate the factors that relate to your own city and your specific neighborhood of interest. For example, what is relevant in the Montage neighborhood in Indio may have little in common with what is happening in Rancho Santana in La Quinta, and Sun City Palm Desert is quite different from Sun City Indio.

This is an opportunistic market environment that adjusts seasonally. This is not a bad market for either buyers or sellers. You must make the effort to understand what's happening in your particular market and plan accordingly. With an experienced realtor, you lessen the risk just by bouncing ideas around with another person/Realtor. Whether one is in a slump or a rebound, it really doesn't matter. What does matter is your understanding of the relevant factors that are going to have an impact, either positive or negative, on the achievement of your specific goals.

Lastly, remember that a real estate professional with specific local market/city knowledge, is the best resource to help you achieve those goals.

Feel free to call or email me with any and all questions.