Indian Ridge Country Club 2018 2nd Quarter Report
*CLICK HERE to view my entire 2018 2nd Quarter Report including STATISTICAL REPORTS, or view the report by clicking “View PDF Document” located to the right of this page under my photo.
I can confidently say real estate throughout the Coachella Valley is looking more positive and we are seeing a consistent increase in the number of sales throughout the major cities and country clubs. There are only 3,038 homes actively listed in the Multiple Listing Service (MLS). The current inventory of active listings inside the gates of the country clubs is down to 5% or less and in some communities, there are fewer than 1% of the homes on the market. These are considerably low compared to the past eight or nine years where inventory of homes on the market have been 7% to 10%.
The California Real Estate market overall sold 4.6% fewer single-family homes this past May than a year ago, however, the median price reached a new high in May. The reason for the downturn is the result of rising interest rates, rising prices and lower inventory. The median price has hit a high of $600,860, higher than peak prices 11 years ago, which was then $594,530. Inventory for homes under $200,000 declined by 28.5% while inventory for homes over $1 million increased by 18%. The fewer number of sales under $500,000 is a direct result of low inventory while sales for luxury homes continues to show modest to strong growth. The average price per square foot for the state has increased 6.7% from May 2017.
Home prices in southern California are more tepid than the northern part of the state, but prices for homes continue to improve. The increase in the average sales price for a home in California is higher as a result of the sales in the Bay Area. This can tilt the numbers to a more positive direction than what is happening in specific market areas. Following the sales in your area and market place can more accurately identify what is happening within a specific city or community.
According to the Desert Housing Report dated June of 2018 for the Coachella Valley, the median price of a single-family home was $416,500, up from $380,000 a year ago. Attached homes prices have increased from $256,500 to $279,000. In Palm Desert, single-family home prices are up 56.5% from its all-time low in 2011 and off 17.3% from its all-time high in 2006. Attached homes are up 65.7% from their all-time low and off 29.3% from their all-time high. Attached home sales represent 36.6% of the sales during the past three months, no change from a year ago. All homes that sold for more than $300,000 are up over a year ago except the $700,000 to $800,000 price range. We have a 3.6 month supply of homes on the market in the desert. The average days on market is 65. The highest “month’s supply” is for homes over $1 million which is currently at 10.2 months down from 13 months a year ago. Palm Desert has 3.4 month’s supply of homes down from 4.8 from a year ago. The supply of homes by city are all down except for Coachella.
The attached report, Coachella Valley Total Home Sales Evaluation, shows the real changes in the desert real estate market. During the second quarter of 2015, 78.2% of the homes sold were under $500,000. During the second quarter of 2018, that percentage was down to 70.2%, a drop of 8%. The difference in homes sales over $500,000 is up 8.1%. Homes selling for over $1 million have reached 8.4% of the sales, up from 6.2% three years ago and a number we haven’t seen since 2005 and 2006.
Sample inventories in the desert show Sun City Palm Desert has 39 homes on the market out of 5,000 homes. The Lakes has 27 homes on the market with just under 1,000 homes. Palm Valley has 23 homes on the market with more than 1,200 homes in the community. Rancho La Quinta has 24 homes actively listed with approximately 1,000 homes. Indian Ridge has 54 homes out of 1,068 actively listed.
The low inventory can slow down sales as buyers remain very specific about what they want in a desert home, however, supply and demand does finally raise values. Looking at the Country Club Home Sales Price Evaluation and Appreciation Report, eleven out of the nineteen country clubs we track realized an appreciation in the average sales price ranging from 3.2% to 19.5% for the year to date compared to the end of 2017. Sixteen of the nineteen are in position to sell more homes in 2018 than they sold in 2017. Six of the seven high-end country clubs are in line to sell more homes this year and prices are up in three of the communities. Average sales prices in the high-end golf course communities can vary dependent on the price point of the homes sold in a quarter. With the fewer number of homes sold in those communities, the real average sales price may be higher or lower than actually reflects for any specific quarter as one quarter does not always reflect the true market value.
Indian Ridge sales for the second quarter finished strong at $21,071,000. This is up $5,599,000 from the first quarter in 2018 and up $3,639,500 compared to the second quarter in 2017. We ended the second quarter with 26 home sales, 14 in the HOA and 12 in the PUD. Last quarter we sold 11 homes in the HOA and 10 in the PUD, for a total of 21 homes. We are on target to sell more homes in Indian Ridge this year than in 2017.
In the first quarter there were 23 Acacia floor plans on the market accounting for a large percentage of the inventory as the demand for single-family homes was the main focus of buyers. In the first 6 months of 2017, eleven Acacia’s sold for an average sales price of $464,727 and $225 per square foot. In 2018, thirteen Acacia’s have already sold with three more in escrow. The average sales price is $433,923 and $221 per square foot. The drop-in sales price is directly related to the number of Acacia’s on the market, which left sellers no choice, but to lower their prices to get their home sold. Sales in the HOA for the second quarter totaled $8,947,000 with 14 homes sold while the same number of homes sold in the second quarter of 2017 with $11,735,500 in total dollar sales or the HOA.
Twenty-two homes have sold this year in the PUD compared to eighteen a year ago. Total dollar sales in the PUD were $12,124,000 in the second quarter of this year compared to $5,696,000 a year ago. The average sale price in the PUD is at $949,091. This is a 7.1% increase from 2017.
We are confident that the rest of the year will produce positive results. The On-Site Sales office represented 22% more buyers in the first six months of the year compared to 2017 and represented more sellers than all other agents combined so we are truly making a difference in home sales in Indian Ridge. We are working hard to make a presence in the community, bringing new buyers in from all avenues and preserving what makes Indian Ridge the unique place it is. There is a definite buzz about our community and an influx of out of area agents and their clients. This expansive exposure can only bring good things!
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