Indian Ridge CC 2010 Annual Report
Dear Indian Ridge Resident:
Another year has passed and the real estate market and the future of the economy remain at the top of the list of major concerns. Doom and gloom cast a shadow on what may happen in the business and real estate worlds. There are those who predict a strong stock market upswing this year and businesses will begin hiring now that the tax cuts have been extended. There are those who predict a further drop in home values. However, California is the only state in the union that showed year over year gains in real estate sales. Now more than ever, the location, where the home is in the country, in which state and in which community will be paramount for future appreciation of values. Where there is higher income, the home values rebound earlier.
The metropolitan areas where job loss remains high and mobility to a large degree based on job relocations should experience a much slower appreciation in value. As a result, the national forecast for the real estate market may be correct on the broad scale but missing the boat in areas that have not been affected by the economic changes and job losses.
How the banking industry handles short sales has been a mystery to me for the past three years. Historically in the desert, there have been many willing and able buyers interested in purchasing a home in the short sale stage. The banks, slow response or no response, have forced buyers to move on, to buy foreclosed homes or wait. The decline in home values, in my opinion, has been driven down by the banks reluctance to handle short sales efficiently or affectively. How much loss has the housing market taken as result of the banks?
The West lead the way in pending sales in November and the National Association of Realtors forecast a gradual improvement in 2011. Real estate contracts rose 18.2% in November in the West. The LA Times reported in their December 30th issue that “all the indicator trends are pointing to a gradual recovery.”
In the Coachella Valley, the supply of low to mid-priced homes has dwindled. With a high percentage of qualified buyers (61% up from 15% in 2007) able to purchase entry level homes and the interest rates to remain 5.3% or lower through 2011, foreclosed homes in the desert should be absorbed without negatively affecting home values. The Coachella Valley Total Home Sales Evaluation shows the annual increase in total sales in the desert at 1.55%. The increase in sales over $500,000 is up 20% and sales over $1 million are up over 43%. Consider the drop in home values over the past three years, savvy buyers aren’t waiting to see the bottom and are buying now. With million dollar plus homes representing 3.5% of the total home sales in the desert this number may be higher than it would appear because many homes sold in the past year no longer fall in the $1 million dollar plus category where they might have been three years ago.
According to the Yearly Country Club Annual Sales report included with this letter, the high-end golf course communities have all increased their total sales from 2009. All golf course communities sold more homes in 2010 over 2009.
In Indian Ridge, we have seen a 91% increase in sales from 2009. That is the largest increase for all golf course communities with the exception of The Reserve. Our average sold price is one of three country clubs showing an increase in 2010 over 2009. This truly shows the buyers see VALUE in the homes and the community. In the fourth quarter of this year, a number of current residents sold their smaller home and moved to a larger home. This is something we didn’t see much of over the past three years. New home buyers are coming into the community purchasing homes at the smaller size and lower price ranges which has made this year the strongest sales year since 2005 and even ahead of 2007.
I am happy to report for the year of 2010 I have been involved in 40% of all home sales in Indian Ridge, representing both buyers and sellers. While 2009 was a slower year in sales, 2010 has been a challenging year for many people making buying and selling homes quite stressful for them.
I have assembled a great team of professionals who are dedicated to serving my clients with professionalism, integrity and enthusiasm. I have included a bio page in this mailing to introduce this team to you. All members of Diane Williams and Associates are licensed real estate professionals, each bringing to the team a specific area of expertise. While I am always available to you, feel free to call the office at any time for their help and assistance as well.
Please click the link "View PDF Document" located under my photo to view a printable version of the entire report.
May you all have a healthy and prosperous New Year.
Associate Broker/Executive Premier Director
Windermere Real Estate