But when I meet someone new and they find out that I am a REALTOR, then the barrage of questions comes flooding in. Some of them go like this:

1. “What is the difference between a short sale and a foreclosure?”
2. “Do you think the Palm Springs Real Market has hit the bottom?”
3. “What is happening with Port Lawrence?”
4. “Do you think it’s good time to buy?”

I will usually answer these questions this way:

1. How much time do you have for an explanation?
2. The answer is yes.
3. Check out my blog, Blog of the Desert, and read my article on Port Lawrence.
4. The answer is absolutely!!

The number one question that I get asked by everyone is: “What homes are selling in Palm Springs?”

As you can see on the chart, there have been 292 single family homes sold YTD in the city of Palm Springs, with an average days on market of 109 days.

To answer everyone’s question, “What is selling in Palm Springs?”, here it is: Homes in the $250,000 to under $300,000 have been the top sellers in the real estate market in Palm Springs. In the last 6 months, there have been 42 homes in this price range that have sold, with average time on the market of 93 days. A very close second place has been the $350,000 to under $400,000 price range, in which 39 homes have been sold.

Many of these homes represent the short-sale (pre-foreclosure) and foreclosed homes that have been flooding the real estate market. Savvy buyers have been purchasing these homes at bargain basement prices, and will reap the benefits as long as they keep the home for a minimum of 5 years.

So what do these number mean to the potential Palm Springs home buyers and sellers?

Let’s take another look at the chart. Say you are selling your home in Palm Springs, and it is priced at $649,500. According to the data, homes in the price range of $600,000-$649,999 have an average time on the market of 159 days and 11 homes have sold in the 6 month time frame.

During the same time frame, 16 homes sold in the $549,000-$599,999 price range and were only on the market for an average of 85 days. As a seller, you need to really look at the numbers and price your home according to the current market data or it will just sit on the market.

For you buyers, I have some pearls of wisdom that you need to share with you as well. The chart to the left represents the total condo sales in Palm Springs for the last 6 months. There were a total of 362 condos that have sold, with an average time on the market of 144 days.

The $200,000-$249,999 price range did very well YTD, with a total of 77 condos sold.

Many people think that the days of multiple offers are a thing of the past. This is simply not true. If homes and condos are priced aggressively, the onslaught of multiple offers will occur.

For instance, my client wanted to place an offer on a mid-century modern home that was priced at $285,000. I knew that this home would sell quickly, so I informed my client that they needed to be aggressive with their offer. We made an offer of $295,000, $10k over the asking price, with a closing in 30 days. To our surprise, we were turned down. It turns out the winning offer was $285,000 cash, and a close of escrow in 10 days.

The moral of the story: Homes are selling in Palm Springs, News at 11. For the buyers, now is the time to take advantage of some of the lowest home prices that the Coachella Valley has seen in a very long time. If you wait for “the bottom to hit”, you are already too late. For the Palm Springs home sellers, the numbers don’t lie. Home prices have gone down. If you want your home to sell, you need to price your home aggressively.

People flying off the handle, City Hall fining honest business owners for having signs in their storefronts, and Fox News still telling the world the “Sky is Falling”. Being bombarded everyday with depressing news will start wearing anyone down. I’m a pretty optimistic person, but there are some days that I just want to stay in bed all day.

Every so often, a random set of positive cliches start playing my head: “It’s alway darkest before the dawn” “The glass is half-full, not half-empty”, and “Winners never quit, and quitters never win”.

As I was preparing the June 2008 Palm Springs Real Estate Market Report, another cliche just popped into my head: “Every cloud has a silver lining”.

I am not going to post that this year’s real estate numbers are lower than last year. We already know that, and why point out the obvious?

There are currently 1326 acitve listings in the city of Palm Springs. Of these 1326 listings, 104 properties are contingent sales in escrow and 108 properties are pending sales in escrow. Pending sales in escrow are transactions where all the contractual contingencies have been removed, and the sale will go through.

The first “silver lining” I discovered: Of the 108 pending escrows in Palm Springs, 40 of transactions occurred during the month of June alone. That’s huge!!!

The second “silver lining” of the Palm Springs Real Estate Market is the increase in the median home price. The average median home price last month was $403,360, which was a 5% increase over last month. The median home price for May 2008 was $381,665.

There were 102 homes & condos sold in Palm Springs during the month of June.

During this time, the homes were getting over 94% of the listing price. What the information is telling me: Homes that are priced to current market trends are getting the best prices, and are being sold sooner.

The last “silver lining” is how long homes are on the market. The average days on market of homes sold in Palm Springs for the month of June is 131 days. This is 11 days shorter than the YTD total of 144 days, and is 9 days shorter than the May 2008 of 140 days.

What does this all mean to you? If you are selling your home in Palm Springs, make sure you price your home competively, or it will just sit on the market. And to you, the Palm
Springs home buyer? I will finish this blog post with my favorite cliche, just for you:

“Don’t put off until tomorrow what you can do today.”

But the highlight of the evening was the auction of Richard Neutra’s Kaufmann House in Palm Springs. I had never been to a live auction before, so watching the live video stream was the next best thing. There were 57 lots (items) that were up for auction, and the Kaufmann House was Lot 42. The opening bid for this architectually significant home started at $9 million. The bidding was fast & furious, but the winning bid for this came in by telephone for $15 million. This is now the most expensive piece of real estate sold in the city of Palm Springs.

Richard Neutra, a student of Frank Lloyd Wright, designed his modern “masterpiece” for Pittsburg department store tycoon, Edgar Kauffman Sr., in 1946. The home was designed as a desert retreat from the harsh winters of the East Coast.

The Kaufmann House is one of top 5 homes in the United States, and now has a new owner. Stay tuned for more info.

Update on this story: The sale of the Kaufmann House did not go through. The winner of the auction did not follow some of the contractual guidelines of the sale.

Every city across America has a neighborhood that everyone says it is the most charming neighborhood they have ever seen. Palm Springs is no different in that respect.

One the most established and sought-after neighborhoods in the city of Palm Springs is Old Las Palmas.

The line from the TV show, “Beverly Hillbillies” comes to mind when I drive through this neighborhood everyday: “Swimming Pools, Movie Stars”

Movie directors and entertainers have been making Old Las Palmas their home since the 1940’s. It is an eclectic mix of the Old Hollywood Estates of yesteryear, to the more modern Mid-Century designs. This was and still is, the place to live.

The Old Las Palmas neighborhood is bordered by Alejo Rd to the north, Stevens Rd. to the south, east of Via Monte Vista, and west of N. Palm Canyon Dr. It is in close proximity to Uptown & Downtown Palm Springs.

The neighborhood was home to such celebrities as Liberace, George Hamilton, Donna Reed, Kirk Douglas, to name a few.

Recently, the office of Scott Lyle Realtors acquired the listing of one of the most beautiful homes I have ever seen:

The Elizabeth Taylor Estate- $7.8 Million

Originally built in the 1930’s and now completely renovated, this Spanish Estate features 7 bedrooms, nine and a half baths, impeccable finishes, and over 10,000 square feet of living space.

This magnificent home sits on over one and half acres of lushly landscaped grounds featuring mature palm trees, lavish fountains, a spectacular open-air entertainment pavillion, a breathtaking reflecting pool, and one the very finest pools in Southern California.

The Master Suite has approximately 2000 square feet of luxurious space, the 4 room suite features an original 2-sided fireplace with a Carrera marble hearth, and vaulted ceilings of up to 14′6″.

The Grand Master Bathroom is a sight to behold. A solid honed Carerra marble tub sits majestically under a multi-tiered candelabra chandelier with tear drop crystals.

Exquisite features include an oversized shower with body sprays, rain shower and steam. A crystalline framed fireplace sets the stage for complete and total opulence. The oversized French doors lead to a private patio with a beautiful 9′7″ x 5′ 7″ in-laid tiled spa.

So expansive, yet so private, you will find the property well-suited for grand parties or quiet weekends, formal or family retreats. Whatever you seek in a Palm Springs home, one look and you’ll agree: There is no other home like it.

For more information or to arrange a private showing, contact my broker, Scott Lyle at 760-327-4312. To view more pictures of this stunning home, go to 417WestHermosaPlace.com

Every Wednesday morning, the Palm Springs Association of Realtors has its weekly Board meeting at the Mizell Senior Center at 8am.

I always get to the meeting about 15 minutes early to get a good seat.  When I got there this morning, the meeting room was packed.  There was a TV news crew setting up in the corner, and was wandering what all the hoopla was all about. 

Were were having a special guest speaker?  Who was it?  The Mayor?   The Governator?  My curiosity had piqued.  It turns our speaker was Larry Ward, the Riverside County Tax Assessor.  Now I thinking to myself “Why all the fuss?  Death & Taxes are the only things certain in life.”

I know that sounds a little pessimistic so early in the morning, but I did not have my morning cup of coffee yet.  The topic that Mr. Ward was covering today was on Proposition 8, the amendment clause in California’s Prop. 13 law to reduce property taxes when homes have decreased in value.

Proposition 8, passed in November 1978, amended Proposition 13 to reflect declines in property values. As a result, Revenue and Taxation Code Section 51 requires the County Assessor to annually enroll either a property’s factored Proposition 13 base year value or its Market Value as of January 1 (lien date), taking into account any factors causing a decline in value, whichever is less.

Mr. Ward went on to explain that in Riverside County, 15,000 Notice of Defaults on homes have been issued in the first 3 months of this year and that foreclosures are up 171% over last year.  With property values down and the current state of the economy, the County Assessors office wants to be proactive in order to help homeowners relieve some of their financial burden.

How will this help the homeowners of Palm Springs & rest of California?  The County Assessor is focusing on people who purchased their homes from January 1, 2004 to the present.   This timeframe represents the height of the Real Estate boom and all of the buying frenzy that ensued.  Take a look at the chart to illustrate how Prop. 8 would work.

If you purchased your home for $400,000 in 2004 (Year 1),  Prop. 13  allows for for a maximum of 2% a year increase in your tax basis .  

In year 2, your property value increased to $455,000, but your Prop. 13 basis is only $408,000.

But in years 3 & 4, the property values plummet but you are still paying the higher basis.

 By filing a Decline in Value Reassessment application, you can petition the County Assessors Office to reassess the value of your home.  If you look at Year 3 Prop. 13 Market Values, the basis is $416,000, which represents $5200 per year in property tax.  By filing a Prop 8 reassessment and bring your basis down to $365,000, the new property tax would only be $4563.  This represents a savings of nearly $700 per year!!!

Prop. 8 allows an annual reassessment increases (or decreases) based on current market data.  You need to realize that Proposition 8 reductions are temporary and recognizes the fact that the current market value of your home has fallen below its Proposition 13 base year value.

If and when the market value of the previously reduced assessment (Proposition 8) increases above its Proposition 13 factored base year value, the Assessor will once again enroll its Proposition 13 factored base year value. Proposition 8 values can change from year to year as the real estate market fluctuates up and down.

Any property that has received a Proposition 8 reduction in the prior year will be automatically reviewed the next year to determine whether that year’s lien date value should be maintained, decreased, or increased. Unless there is a change in ownership or new construction, your assessment can never increase above the factored Proposition 13 base year value.

The due date to file the Decline in Value Reassessment application is September 1, 2008.  For more information on Riverside County Proposition 8 data, log on to http://www.RiversideACR.com

In these tough economic times, any money saving ideas can help us all.

We all know bad news sells newspapers.  Whether it is the latest celebrity going to rehab or the Dow dropping 150 points, we are fixated on the bad.  

For the last year, we have been inundated by the media on how terrible the real estate market is across the country.  We all have to remember that real estate market is local, and that was is happening in Michigan is not necessarily happening in Palm Springs.   It drives me crazy when publications like the Desert Sun will report in bold headlines, “The Palm Springs Real Estate Market Continues Downward Spiral”, but in small print on page 6, “home sales up for the month of december”.

During my research in the Palm Springs MLS for the January 2008 home sales report, I found a silver lining: 

Median Home Price in Palm Springs for January 2008 Up 8% over last year

The January 2008 median home price in Palm Springs was $409,383, compared to the January 2007 price of $379,186.  This is an increase of nearly 8%!!  The incremental increase in the average median home prices is attributed to the continued sales of $1,000,000+  homes in Palm Springs, in which 3 were sold last month.  Here is the breakdown of the real esate business last month:

In addition, homes and condos in Palm Springs are selling nearly 94% of asking price.  Again, what does this mean to you, the buyer?  It means that the sellers of homes are continuing to adjust their offering prices to the reality of the current real estate market. 

Whether you are buying a short-sale home or a foreclosure, there many investment opportunities to be had in Palm Springs.  See you in March for the February 2008 Home Sales report.

 Photos courtesy of Flickr          

This is my typical morning before I go to work:  Have my cup of tea, turn on the Today Show for background noise, and read my morning paper. 

This is my normal routine until something I heard on the Today Show that made me spit out my tea across the kitchen table: 

A Buyer in San Diego is suing their Realtor for fraud because they overpaid for the home they bought in 2004.

I could not believe what I was hearing!!!!

The couple purchased their northern San Diego home in 2004 for 1.2 million dollars, and the basis of the lawsuit is that their Realtor did not disclose the fact that a few homes in their neighborhood sold for 100-150k less than what they paid for their home.  They felt the Realtor was not doing their due diligence and was only looking for their commission.

As I listened to the interview, this person was not losing their home, they were just complaining that they paid too much.  Even the NBC Legal Expert told this couple that is the responsibility of the BUYER to satisfy their investigation of the property, including the comps because the information is public record.  This expert explained to her that she doesn’t know why the other owners sold for less.  It could have been a divorce, job transfer, or the rooms were painted black.  Her point was that home is worth what someone is willing to pay.

So what can you and your REALTOR do to protect yourselves when buying a home in Palm Springs?  The same as we always have:  DISCLOSE AND INVESTIGATE!!

One of the forms that I am starting to use again is the Market Conditions Advisory disclosure form from the the California Association of Realtors (CAR Form- MCA).

Item A States: “Real Estate markets are cyclical and can change over time.  It is impossible to predict future market conditions with exact accuracy  In a competitive or “hot” real estate market, there are generally more buyers than sellers.  This will often lead to multiple buyers competing for the same property.  As a result, in order to make their offers more attractive, some buyers may offer more than originally planned or eliminate certain contingencies in their offers. 

In a less competitive or “cool” market there are generally more sellers than buyers, often causing real estate prices to level off or drop, sometimes precipitously.  In light of the real estate market’s cyclical nature it is important that buyers understand the potential for little or no appreciation in value, or the actual loss in value, of the property they purchase.  This Advisory discusses some of the potential risks inherent in changing market conditions.

Your Palm Springs Realtor is going to give you the most accurate & up-to-date information that is available for the real estate estate market, but the responsibility to investigate belongs with you, the buyer.  If you have a question or don’t understand something, ask your REALTOR. 

A responsible REALTOR is not going to have you buy a property that is not right for you.  There are many buying opportunities available in Palm Springs, but make sure you do your homework.  It’s in your best interest to do so.

Happy New Year to one and all!!!  I just got back a couple of days ago from my vacation to Buenos Aires, so I have not been up to date on my blogging activities.  I had the best of intentions to do some blogging but hey, I’m was on vacation!!!

The month of December in Palm Springs was filled with lots of merriment and holiday cheer.  There were so many more parties this year, that I had to turn down a few of them.  Sorry Guys!!  

Besides leaving for my vacation on the 15th of December, the highlight of the holiday season for me was the Festival of Lights Parade.  

It was so much fun seeing all of the lights on the floats, drinking hot apple cider, and seeing the joy of the holidays on everyone’s face.  It was a magical moment. 

The month of December was also a busy time for the Palm Springs Real Estate market. The Palm Springs Home Sales Report for December 2007 showed some positive improvement to end the year.

With all the negative news in the media about the state of the housing market and the economy in general, it is nice to find a “silver lining” in all of the madness.

According to Palm Springs MLS (Multiple Listing Service), there were 108 homes and condos that sold during the month of December 2007.  That is a 3% increase over the December 2006 homes sales in Palm Springs, which was 105 homes sold.  I will take any sign of good news I can get!!! 

Here is the complete homes sales report for the month of December 2007:

• Homes & Condos Sold:  108   Median Home Price: $440,838   

• Avg Days on Market:  141      Avg Price Per Sq. Ft.:  $231.76 

• Condos Sold:  52    Median Condo Price:  $249,112  

• Avg Days on Market: 132   Avg Price Per Sq. Ft.:  $185.54

• Homes Sold:  56   Median Home Price:  $618,869

• Avg Days on Market:  149   Avg Price Per Sq. Ft.:  $275.45
  

There were 8 homes over $1 million that sold in Palm Springs during the month of December, which skewed the high median home price of $618,869.  

The homes and condos that sold last month received 93.7% of the asking price.  This trend is a continuation of what that I saw last month in the November 2007 home sales report.   Home sellers are realizing that if you price it right, the buyers will come.

There are plenty of great opportunities to purchase a home in Palm Springs, especially for Canadian buyers.  There hasn’t been a better time when buyers have had a greater selection of homes to choose from.  It is time to negotiate your best offer on a home, and not sit on the sidelines waiting for the real estate market to “hit bottom”.   If you wait to hit the bottom, you are already too late.  

See you next month for the January 2008 Palm Springs Home Sales Report.

Copyright 2008 ©  All Rights Reserved.

Photo Courtesy of Flickr

Did you ever have one of those moments when you have so many thoughts going on in your head that you can’t think? 

Imagine what homeowners are going through when they make the decision  to put their home or condo on the market to sell.  The current condition of the real estate market, rising foreclosures, Mortgage Meltdown 2007, and the overall negative media coverage of everything, it’s no wonder that home sellers in Palm Springs have so many questions.  

When interviewing your potential Realtor, ask this question:  “What is the absorption rate of homes in Palm Springs?”   If they hesitate or cannot answer the question knowledgably, run.  Any real estate professional ”worth their salt” will know the answer to this question. 

Absorption rate is a simple mathematical equation that demonstrates the basic concept of supply & demand in the real estate market.  By taking the current number of homes on the market and dividing it by the amount of homes sold during the previous month, it will give a realistic look at how well homes are being “absorbed” by the market.

For example, there are currently 1493 homes on the market in Palm Springs.  This includes all the active listings plus all the homes & condos in escrow.  Last month, there were 74 homes sold in Palm Springs.

1493 divided by 74= 20.13 months absorption

Based on this rate of absorption, it would take over 2o months for sell all the homes in Palm Springs.  Now this an overall calculation, and further research needs to be done for your particular situation. 

Absorption Rates can be calculated by other criteria to give a true picture of the real estate market:

• Price Point: Some home prices may be selling faster than other prices in town.
• Neighborhood: Certain neighborhoods may be “more sought after” than others in town.

So what does absorption rate have to do with selling your home in Palm Springs?  Everything.

Here’s an example:  You want to price your home at $825,000.   The homes in the $600-$799k range has an absorption rate of 7.1, but the homes in the $800-$999k range have a rate of 12.3.

If you need to sell your home quickly, you may want to price your home below $800k.  If you want your home stay on the market for over a year, then keep your price at $825,000.

Now is not the time to “test the market”.  If you need to sell your Palm Springs home or condo,  you need to price it aggressively to be noticed.   Your Realtor should be telling you the honest truth about the market, not what you want to hear in order to get an overpriced listing.  What you don’t know about the real estate market can hurt you financially.

I will be reporting the absorption rates of homes sold in Palm Springs on a monthly basis, starting in January.  This way,  home sellers & buyers will have an accurate picture of the real estate market.

The holidays have arrived in Palm Springs, and everyone is getting into the spirit of the Season.  Last Saturday, was the Festival of Lights Parade and this weekend is the Palm Springs Classic Film Festival.   There is plenty to do here in our fine city.  If you a contemplating a move to Palm Springs, here are the lastest figures for this months Palm Springs Home Sales Report for Nov. 2007.  Use this as your guide to your decision to buying a home in Palm Springs:

74 homes and condos were sold in Palm Springs during the month of November 2007.  The average median price was $534,452, and the average time on the market was 137 days.

• Condos Sold=36   Average Median Price=$312,466   Average Days on Market: 130
• Homes Sold=38   Average Median Price=$744,755   Average Days on Market:  143

The trend I am seeing with the homes that have sold in Palm Springs is that they are selling close to asking price.  This is due in part to the home sellers’ reducing their offering prices to more realistic market conditions.   Buyers having more choices than ever, are only going to purchase a home they believe is priced well.

Here are the facts:  Condos sold in Palm Springs for the month of November were getting 94.83% of the list price, while homes sold in Palm Springs received 93.55% of the list price.

So what does this mean to you, the Palm Springs home buyer?  It means that you have more choices than you have had in the last several years, and the time to buy is now.  You are in the drivers seat.  It’s time to make your best and reasonable offer on your dream home in Palm Springs. 

For further assistance on your Palm Springs home search, go to my website Greetings From Palm Springs.com and click on Search For Homes.