Toscana CC 2006 Annual Report
Dear Toscana Resident:
According to the California Association of Realtors, home sales were down 35% in November from a year ago and the median price down 2.1%. Home sales remain at their slowest pace in nine years as the market continues to rebalance itself. While new home sales with their many incentives surged 27% in October, it was short lived as sales dipped 44.7% in November. The valley's average median price in November was $395,000, $5,000 less than a year ago. As of mid December, there were 8,236 homes on the market in the desert. This is up from 5,657 in December and 2,915 in December of 2004. We have gone from a 3.6 month supply of homes to a 7.4 month supply. Annual appreciation in November of 2005 was 22.7% while this November showed a -0.9%. Out zip code of 92210 showed a drop of 33.3% in sales over a year ago with a depreciation in median price.
According to John Seymour in his ‘What's Hot and What's Not" newsletter, on average, the existing loan balances are about 50% of the home value. Data confirms that 1/3 of the home equity extracted during the refinance boom was for new investments rather than consumer spending. Regionally, home sales were up 6.4% in the west, while the rest of the country remains flat or down. While some predict a housing depression lasting 3 to 5 years, the recession like cycle of 2006 will be replaced with a stable and slightly improved 2007. Those declaring price declines of 10 to 15 percent should prove to be wrong.
So on a more local point, what does this mean for Toscana Country Club? In Toscana, on the resale market, 9 homes and 3 lots sold in 2006 with an average days on market of 69. Currently there are 10 homes on the resale market with an average days on market of 173. One custom lot has been on the market for 188 days. While Toscana remains a great country club, it is now in the mix with other golf course communities and is not necessarily the final destination for many who visit our homes for sale. The required Golf Membership eliminates some buyers from considering Toscana as a place to purchase. With fewer buyers taking longer to decide where to buy, each home for sale is in competition with others within the community and in other golf course communities. We see some homes dropping their asking prices and still no one is making an offer while other properties get top dollar. This clearly shows properties with the best location, upgrades and upscale furnishings will be the homes that sell the fastest and for the greatest amount of money. The other homes will compete for market share and prices will dictate their marketability. Even the higher priced properties in Toscana are competing with other high end communities and newer custom built homes elsewhere in the Coachella Valley.
In spite of the changing market in the Coachella Valley, our business continues to grow as we strive to provide the best possible service to our clients. Kelly McLeod, formerly of Sunrise Company and their top resale agent at Toscana Country Club, has joined our team. With Kelly, Donna and myself working full-time to serve our clients, we are easily accessible.
Included in this report are photos of homes we have currently listed in Toscana and those we represented in the resale of the properties. We represented 7 of the 12 properties sold on the resale market in 2006.
If you are thinking of selling your home, please call us. With combined sales over $50,000,000 in 2006, we take our profession seriously and put our client's best interests first. We have extensive knowledge of the community and country club. Whatever your needs, buying or selling, we know the Coachella Valley and can provide full service to you whether you reside in Toscana or elsewhere.
Diane R. Williams
Associate Broker/Premier Director
Windermere Real Estate