Indian Ridge Country Club 2018 1st Quarter Report
*CLICK HERE To view my entire 2018 1st Quarter Report including STATISTICAL REPORTS, or view the report by clicking “View PDF Document” located to the right of this page under my photo.
During the fourth quarter of 2017, the number of homes sold in the Coachella Valley was up nearly 15% from the previous year and the market continues showing signs of improvement. The housing forecast for 2018 in California indicates prices should go up and inventory should remain low. During the first quarter of this year, approximately the same number of homes sold as in the first quarter of last year. Inventory is down 20% from a year ago. More than likely this is the reason we have not seen an increase in the number of homes sold. Buyers remain very specific on what they want to buy and there are fewer homes that meet their particular needs.
In the Coachella Valley, the average total sales in March were up only 2.5% from a year ago. This shows a slight slow-down, however, sales are not expected to decline. The actual sales show that 64% of the homes sold are detached homes and 36% are attached. Attached homes are showing a 3% growth curve while the detached homes are showing an average 7% growth.
In the Coachella Valley, the Total Home Sales Evaluation data shows 2,464 homes sold in the first quarter. While fewer homes sold this past quarter compared to a year ago, the million dollar home sales are the highest they have been since 2007. According to the Country Club Home Sales Price Comparison Report, home sales are up in the high-end country clubs with 6 out of the 7 in position to sell more homes this year than in 2017. While 4 of the 7 high-end golf course communities have experienced an average price drop, Bighorn, Hideaway and Toscana are showing great sales and excellent appreciation. In reviewing the additional twelve other golf course communities we follow, it appears they are on track to sell approximately the same number of homes in 2018 compared to 2017. Five of the twelve country clubs are experiencing price appreciation in 2018.
According to one of our title representatives, the sales for homes under $600,000 and over $ 2 million are very strong. The homes in the middle are taking longer to sell. The common thread is homes that have been upgraded and remodeled sell quickly compared to homes that have not. Homes that have not been currently remodeled remain on the market longer, eventually selling for less, keeping the average market value for similar homes under the true potential market value.
Homes selling for over one million dropped from an 18.7 month’s supply to 15.5 months. Homes selling between $900,000 and $1 million are down to a 11.2 months supply from 19.4 months a year ago. Homes selling for less than $500,000 represent 71.5% of the total sales in the valley, the lowest since 2007. This is primarily due to lack of inventory. The demand right now is for single-family homes so condominiums selling for lower prices are in less demand. This will change as the single-family home’s prices increase.
In Indian Ridge, the average price for homes sold is lower than a year ago. With more expensive homes currently in escrow, we should see this corrected by the end of the second or third quarter. We had one more home sale this quarter versus the first quarter of last year. The total dollar sales volume is higher than in 2017 and is the highest it has been since 2008, however, the Country Club Appreciation report shows the average sales price is down 2.2% this year in Indian Ridge with both the HOA and PUD down 2.6% and 2.7% respectively.
Of all the homes sold in Indian Ridge in 2017, 32.9% sold for less than $600,000; 53.1% of the homes sold between $600,000 and $1 million; and 13.9% of the homes sold were over $1 million. To date in 2018, 24.3% of the homes sold for less than $600,000; and homes selling between $600,000 and $1 million represented 45.9% of the total sales and 27.9% of the homes sold for over $1 million. The higher percentage of million dollar homes sales is the reason for the higher total dollar sales in Indian Ridge for the first quarter of this year.
In Indian Ridge, as of April 6th, 72 homes are actively listed for sale. Of the 72, 23 are the Acacia models, representing 32% of the homes on the market. The demand for single-family homes is very high right now and our inventory is very low with only 49 single-family homes on the market. Once the single-family home prices get too high for some of the buyers, the Acacia models will begin to sell more quickly.
The number of residents who consider their home in Indian Ridge as their primary residence is much higher than it was years ago. We always considered the average to be approximately one third of the homes. Of the 467 homes in the HOA section, 187 are primary residences, representing 40% of the homes in the HOA. Of the 601 homes in the PUD, 267 homes are considered the owner’s primary residence representing 44.4% of the PUD homes. The total number of homes owned by remote buyers who have their primary residence elsewhere is 57.4%, making Indian Ridge a full-time home to 42.6% of our residents.
Indian Ridge Country Club’s fiscal year runs from October 1 to September 30. When we compare the sales using their fiscal year, since October 1st of 2017, 56 homes have sold or are in escrow – up 24.3% from the previous fiscal year. Rancho La Quinta during that same time frame sold 37% fewer homes. Both communities have fifteen homes in escrow so we should see higher number of sales in both communities.
To date for this season, our On-Site Sales Office has experienced and increase in walk-ins and inquiries through our team website and the country club’s new website. This is our third year operating/managing the On-Site Sales office and our market share continues to grow. Since the start of our third fiscal year (October 1) we have represented over 58% of all pending and sold homes. During the first quarter, we represented nearly 60% of all homes in escrow and sold and 62.5% of all the homes selling for over one million.
According to the Multiple Listing Service, Diane Williams and Associates ranks #1 in Indian Ridge, selling more than four times more than our nearest competitor. In the entire Palm Desert area, we ranked “first” in dollar volume in 2017 just ahead of the Bighorn On-Site Sales office whose average price of homes sold are over $3.5 million. In the combined areas of Indian Wells, Palm Desert, Rancho Mirage and Sun City, we ranked “second” to the Vintage On-Site Sales team in total dollar volume but first in total sales. Vintage’s average home sale price is over $2.5 million. Our knowledge of the desert real estate market gives our client’s the best and most accurate information. With total transparency, our clients can decide whether it is the right time for them to sell or buy based on accurate market data.
Allison Renz, Heather Wong, Terrie Pena, Frank Montiforte and myself are readily available to meet with buyers to show homes and provide property evaluations that help sellers make the right decision about their home. We are happy to meet with residents for a free market analysis and as always it will remain confidential. Kristeen Kidd, our office manager, handles and oversees all transactions and manages the office. Laura Flannery designs and coordinates our advertising and marketing (print media, web-based marketing, and social media) in collaboration with the entire team.
The advantage in using our highly experienced and efficient team is we can show more than one home at a time, work with more than one buyer at a time, answer more than one phone call at a time and have plenty of time to represent our client’s best interests.
We are thankful for all the continued support from the community and members. We have an open-door policy and if at any time you would like to see what we do to set us apart, please stop by our office. We are always happy to meet and discuss the market with you.
Diane R. Baxter
Associate Broker/Executive Luxury Director