Both sales and prices of desert homes and condos in several desert cities were on the rise again during the first quarter of 2012 compared to the same period of ‘11. Over $608 million of desert property was sold during the first quarter in the five most active desert cities listed below.






Indian Wells: Sales UP +21.05% / Average sales price +11.90% to $917,983


La Quinta: Sales UP +9.35% / Average sales price +3.28% to $588,105


Palm Desert: Sales UP +3.45% / Average sales price +1.93% to $455,488


Palm Springs: Sales UP+2.07% - Average sales price -1.93% to $428,130


Rancho Mirage: Sales DOWN -4.26% - Average sales price -7.96% to $578,496


Indio: Sales DOWN -9.46% - Average sales price +2.09% to $308,879



2012 1st. Quarter Sales Volume By Price Segment Versus those of 2011's 1st. Quarter


Homes sold from $200,000 to $399,999: +3.14%


$400,000 to $599,999: +1.92%


$600,000 to $799,999: -1.81%


$800,000 to $999,999: +4.35%


$1M to $1,499,999: +29.90%


$1.5M to $1,999,999: +9.10%


$2 Million and greater: +15.65%


Data Source: Desert Area MLS sales of homes and condos sold in the first quarter of 2012 compared to 2011 in the cities of Indian Wells, Rancho Mirage, Indio, La Quinta, Palm Desert and Palm Springs. Data extrapulated from numerous reliable sources.


Disclosure: Data is deemed to be accurate but cannot be guaranteed.






Seeing declining inventories, several optimistic local and national new-home developers, especially in La Quinta, have either broken ground or are considering purchasing land and lots and building new homes again. Builders such as Lennar with the Bridges at Jefferson, Sedona Homes at The Hideaway and RJT Homes with Cordoniz . In January alone, builders took out over 200 building permits in Riverside County, which is more than the entire last six months of 2011.

Not all the real estate news for 2010 is doom and gloom. Sure, the foreclosures are predicted to continue and even increase in 2010, and stabilizing home values will depend on the area in which you live. These three trends to expect in 2010 should help balance out the increasing foreclosures and home values:
3. 99% of short sales do not go through to closing. The other 9% are those where the lender has ALREADY approved the short-sale amount. I only work with this type of short sale as all the parties concerned at least know where they stand in a relatively short period of time rather than wondering how long before an answer is received and how much the market could change upwards to downwards. La Quinta, Palm Desert,Rancho Mirage and Indian Wells offer many approved short-sales and these can be found on http://www.luxurydeserthomes.com/ .
We currently have an approved short sale that was originally listed for $2.595 million in the Tradition available for $1.5 million!

2. More Buyers in 2010 - Expectations are for more home purchases in 2010. With the Home Buyer tax credit (originally slated to end in November of 2009) extended until April 30, 2010, the next few months should find an increase in home purchases. Additionally, the tax credit now applies to some existing homeowners, and also to some higher income owners. The market will not only see new buyers purchasing a home, but some current home owners buying up as well. And, since the Fed has kept interest rates at the current all-time low, mortgage rates are another reason for well qualified buyers to jump into the market now!

1. Continued Buyer’s Market – With the large inventory of homes on the market today, the buyer is securely in the driver’s seat. Sellers must be on their toes and always trying to entice buyers into their "move-in-ready" homes. In this type of market, many owners will offer a price reduction on properties that have been on the for-sale list over 30 days. Well qualified buyers can negotiate with these owners for a lower price, can request contingencies, request credit clauses for worn out carpets and the like, ask the seller to share closing costs, and ask for a home warranty. Actually, that is just the beginning of the list of perks a buyer can request in this market!