Toscana CC 2007 Annual Report
Dear Toscana Resident:
Enclosed is the first annual report on re-sale activity in Toscana Country Club. This data is derived from information on the Multiple Listing Service (MLS). It includes the resale and spec homes that have sold as well. For the year, 12 homes sold, 5 of the homes were spec homes. One estate lot, #204, sold during the 3rd quarter. (Check for updated lot list).
Currently there are 32 homes on the market with 10 of the homes built by Toscana as move in ready spec homes. Since August of this year, the lot prices in phase 2 have been reduced from $82,000 to $137,000. These are all north facing lots except for 2 that face east. This does affect the new home sale prices for homes built on these lots. All the lots on the list price are south facing in phase 3 and no change in price has taken place. Those remaining lots in phase 1 have had no price reduction per the materials provided by the on site office. Please refer to the enclosed reports showing detailed information on the homes that sold and those currently on the market.
Included with this mailing is a list of those high-end communities who compete at various levels with Toscana Country Club home sales. Again this information has been compiled by use of the MLS. Any sales not recorded through the MLS would not be included in this count. What is interesting to note is the number of home and lot sales for both 2006 and 2007 and the average price per square foot in each community. Most of the homes in Hideaway, The Reserve, Bighorn and Tradition, as you well know, are custom homes offering individuality where the majority of the homes in Toscana are repetitive floor plans.
It is expected the cycle will bottom in the first quarter of 2008 and slowly begin to recover. I believe the real estate market in the Coachella Valley started making a positive move in October with the high number of Canadians purchasing homes while the US dollar remains weak internationally.
In the national real estate market, especially in California, the lack of availability for ‘jumbo' real estate loans has slowed sales in the higher priced markets. Currently there is a 10.8 month supply. We can see this in Toscana as homes remain on the market, even those homes with significant upgrades and the best views and locations.
According to the LA Times, despite all the scary statistics, sales of existing and new homes in 2007 totaled an estimated 6.5 million which would make the past year the 5th largest sales year in US real estate history. Prices were flat or up in 204 of the 287 metropolitan markets surveyed. So as consumer psychology begins to change and affordable housing and low interest rates continue, buyers will re-enter the market. There truly is no better time to purchase a new
If you compute the sale of an existing home to purchase a larger home, at the current prices, the appreciation of the more expensive home will be greater and will have cost less than it would to purchase the same home in a few years.
It is important to note as you read through this report, that not all homes are created equal in that the upgrades and location make a tremendous difference in what a buyer is willing to pay to obtain the home of their choice. With more homes on the market and buyers more selective and willing to take their time in finding the right home, it is important to make sure your home competes either in upgrades or in value.
This year has been another banner one for me making me one of the top Real Estate Brokers in the Coachella Valley. As we begin a new year, I want to extend my sincere appreciation to those who have allowed me to be of service to them and their continued referrals of friends, family and acquaintances.
I wish you all a wonderful new year.
Diane R. Williams
Associate Broker/Premier Director
Windermere Real Estate