Indian Ridge CC 2006 1st Quarter Report
Dear Indian Ridge Resident:
The news continues to cast positive and negative spin on the real estate market. Last week I was invited to attend a meeting for 320 of the top real estate agents in the country. We were able to compare the different markets and the sales activity in each of our specific areas. Everyone has experienced a slow down and price reductions are necessary for those homes over-priced as compared to other properties available.
In the March issue of "What's Hot What's Not," retired Senator John Seymour indicates we have experienced a 'soft landing'. We now have a 4.9 month supply (nationally) of new homes on the market. A 5 month supply of unsold new homes is considered a stable market. Even with the 'soft landing' the median price for new homes rose 4%. The increase is expected to be 6% this year as compared to 12% in 2005.
Existing home sales were down in January compared to a year ago. The national median price of resale homes was up 11.6%. Unsold inventory represents a 5.3 month supply. Historically, a 5.5 month supply is considered a stable market. In the West, home sales were down 3.4%. Predictions show a 14% drop in new home sales and a 5% drop in existing home sales.
In the California Real Estate Market, housing took a hard 'bump' in January with a drop of 24.1% in existing home sales compared to a year ago. The median price in January, however, was $551,300 or 13.8% higher than January of 2005. Resale of homes grew to a 6 month supply. Projections indicate that inventory will decline as we proceed through the year.
In Indian Ridge, we have gone from a 2.87 month supply to a 4.6 month supply. This basically means, what normally would take 86 days to sell a home has increased to 140 days on the market. What I have noticed this season is, those homes with all the bells and whistles take less time to sell than the properties where the buyer feels they have work that needs to be done to the home. To compare the 1st Quarter of 2005 with 2006, 33 homes sold and 16 homes went pending in 2005 as compared to 23 homes sold and 11 homes pending in 2006. The 2nd Quarter of 2005 had 52 homes sold with 18 pending at the end of the first quarter. With sales activity picking up in April, stay tuned for the next quarterly report.
High end hmes dominated the ranks of homes sold in February. According to the California Desert Association of Realtors, there are no fire sales going on and it is not the classic 'buyer's market'. Buyers are being more selective and so sellers have to be more flexible on the pricing of their home. With an average of 53 people moving to the desert each day and the climate and scenery attractive to buyers, the projections for a good market remain strong. With the asking price correction, the local buying opportunities remain attractive as our prices remain lower than the coastal and northern California areas.
With this adjustment in the real estate market here in the valley, while there appears to be a slowdown, for me personally, I am on tract for a best year ever.
Diane R. Williams
Associate Broker/ Premier Director
Windermere Real Estate