Stefani Real Estate Consultants

The real estate market in the Coachella Valley has been rapidly changing and improving.  The following are some specific factors currently occurring in the market.

1. Listing & Sales Activity – In the Coachella Valley, which includes all the cities from Palm Springs to the Salton Sea, there are currently about 5,500 homes for sale (inventory).  It has been 4 years since inventory levels have been this low.   Based on the current sales pace approximately 10,000 homes will be sold in the Coachella Valley this year.  This sales volume has not been experienced since 2005.
2. Pricing - Over the course of this year, we have seen selling prices stabilize and some communities are showing slight price increases.  Given the law of supply and demand, based on the reduced inventory levels this is to be expected.
3. Traditional vs. Distressed - It is important to remember that there are currently two distinct types of real estate markets in the valley.  One is the distressed seller market.  These short sales and bank owned properties are generally priced well below “normal” market value, receive multiple offers, and sell at or above list price.  The other market consists of traditional, non-distressed sellers.  These homes generally sell at market value.
4. Strengthening Canadian Dollar – As the Canadian Dollar strengthens relative to the U. S. Dollar, real estate in the U.S. becomes more affordable for our northern neighbors.  At this time last year, the Canadian Dollar was worth 0.75 – 0.80 U.S. Dollars.  Currently, the Canadian Dollar is worth about 0.95 U.S. Dollars.  Let’s show this as an example:  A $500,000 U.S. home purchased using Canadian Dollars this time last year would have cost $625,000 Canadian Dollars.  Right now, that same $500,000 home would cost only $526,000 Canadian Dollars.
5. Mortgage Interest Rates – Mortgage rates are now near all time lows.  The 30 year fixed rate is just under 5.0%.  Although bank lending standards have increased, banks are still lending money to qualified borrowers. 
6. Buyer Beware!  -  Do not become a frustrated buyer.  If you are looking to purchase property in this market, understand what kind of property you are looking for before you start your search.  If you are looking for property at distressed prices, limit your search only to distressed properties.  Attempting to purchase traditional, non-distressed properties at distressed property prices will only end in frustration for you and the seller.  There is a reason why some properties are distressed sales and some are not.  Distressed properties sell for as low a price as the bank will accept.  Traditional, non-distressed properties will sell for fair, current market values – which are well below the market highs and all indications are that the decline in these prices is over.  You can still get a very good deal on traditional non-distressed properties; just don’t count on getting well below market value on non-distressed sales.

If you are considering buying or selling a home in the Coachella Valley, now more than ever, you need a professional that understands this rapidly changing and diverse market.  As such, we would be honored to help you find or sell your home.  If you would like more information, or would like to discuss your situation in detail, please give us, the Stefanis, a call.  Steve’s cell 760-406-1047 (DRE # 155511289), Lynda’s cell 760-406-1063 (DRE # 155511290), SandL@StefaniRealty.com, www.StefaniRealty.com.