Indian Ridge Country Club 2019 2nd Quarter Report
*CLICK HERE to view my entire 2019 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.
As summer continues, temperatures are stable and so is the real estate market. As we finish the 2nd quarter and head into the 3rd, we continue to see ongoing positive signs of stability for many of the desert cities and country clubs. As of July 1st, there was a combined total of 3,010 homes and condos actively listed in the Coachella Valley. This is 28 units less than we had on July 18, 2018. Inventory is usually at its lowest during the summer months and we typically expect to see an increase as we near September and October. Due to the lower inventory of homes on the market and home prices rising, we are seeing fewer sales throughout the Coachella Valley. According to the Desert Housing June 2019 Report, sales for homes priced under $400,000 has decreased by 11.52% compared to same time in 2018. Sales of homes priced over $1 million represented 8.2% of the home sales during the second quarter, about the same as last year.
The Coachella Valley Total Homes Sales Evaluation included with this letter shows home sales for the 2nd quarter in 2019 down 4.4% compared to the sales of 2nd quarter 2018. This is the first time since 2015 that we have seen a decrease in sales, which correlates back to the lower supply of homes currently on the market and price appreciation.
According to the Desert Housing June 2019 Report, in June the median price of a detached home was $427,000. This is 2.5% higher than it was in June 2018. The attached median home price for condos realized an increase of 4.8% to $292,500. Eight of the nine desert cities tracked show a price increase for detached homes ranging from .7% up to 11.9%. Palm Desert is the only city down, showing a decrease of 8%. Indian Wells and La Quinta have the largest gains at 11.9%. Palm Springs shows a 3.1% gain, up 11.6% from its all-time high in 2007. In the attached (condo) home market, five of the nine cities show price gains with La Quinta at the highest at 10.7% and Palm Desert second highest at 7.6%.
The low levels of inventory of homes in the Coachella Valley do not appear to be slowing down the sales in the country clubs we track. According to our Country Club Homes Sales Price Change and Appreciation Report, 13 of the 19 clubs have already sold 50% or more of their total sales in 2018. The average sales price was higher in 15 out of the 19 clubs, ranging from 1% to 51.6% for the year to date compared to the end of 2018. Six out of the seven high-end clubs that we track are on target to sell more homes this year with the majority of them leveling off in price appreciation but still showing some price increase. All of the high-end clubs are above 50% of their sales volume from last year except for The Vintage which is at 39%. Palm Valley, Indian Ridge, Rancho La Quinta and The Lakes show more than 60% of their total sales from 2018 making them likely to well exceed their last year’s total sales.
Indian Ridge finished the second quarter strong with a total of 32 home sales. That is six more homes sold than in the 2nd quarter of 2018. Eighteen of these homes were in the HOA and 14 of the homes sold were in the PUD. Indian Ridge is on target to sell more homes this year than in 2018 and we have not sold these many homes in a second quarter since 2005. Year to date 55 homes have sold in Indian Ridge, up from 47 from last year. The average price per square foot in the HOA remains relatively the same with the PUD seeing an increase from an average square foot price of $313 to $324. The HOA has not sold this many homes in one quarter since 2006 and the PUD since 2014. HOA sales remain strong due to the unchanged price point. Of the 18 homes sold in the HOA this 2nd quarter, 10 were the Acacia models. The average sales price of homes in the HOA at the end of second quarter was $602,833.
The PUD finished strong with 14 home sales in the 2nd quarter. Five of the 14 homes sold for over $1 million with the average sales price being $1,059,928. This is an 18.6% increase in the average sales price for million-dollar homes in Indian Ridge than we saw at the end of 2018. Year to date, Indian Ridge has sold 13 homes priced at $1 Million or more. That is the highest number of million-dollar sales we have seen since 2015.
Total dollar sales in Indian Ridge for the second quarter ended at $25,741,945, the highest we have seen since 2014. Year to date Indian Ridge has sold 55 units with a sales volume of $44,074,345. This is already $7,531,345 higher than last year at this time. There are currently 41 homes active on the market with 8 in escrow. Our office currently represents 7 of these buyers and sellers. We represent over 50% of the homes actively listed as well. So far this year we have represented 35 of the 55 buyers and sellers.
We have noticed an increase of out of area agents bringing clients to the community. Our office works hard to create and maintain relationships with these out of area agents. We believe the more exposure your home gets the better, that is why we expanded our marketing programs to not just marketing within the inner community agents, but agents all over. We are also launching a campaign for targeting the major markets where buyers are coming from such as: Seattle, Canada, San Diego, and Los Angeles. Our marketing avenues set us apart from other agents and no one does as much as we do…not only in Indian Ridge, but throughout the Coachella Valley.
As the onsite sales team we are grateful for our position in the community and the successes we have had with the help and support of the club and homeowners. Indian Ridge is on track for another stellar year and we are excited to be a part of it. We anticipate the rest of the summer to be good and foresee a very active fall. If you have any questions about your home or the real estate market, please give us a call. We are happy to meet or talk with you at anytime.
Diane R. Baxter, Associate Broker/Executive Luxury Director
Diane Williams Team ~ Allison Renz, Heather Wong, Terrie Pena, Frank Montiforte, Kristeen Kidd, and Laura Flannery