Toscana CC 2008 3rd Quarter Report
Dear Toscana Resident:
In review of the current real estate market conditions and speaking with other top producing agents throughout the country, the ability to qualify and obtain a loan remains difficult. Buyers continue to hesitate in purchasing as they await another price reduction. With the financial dilemma we currently face, the length of time until the real estate and economic conditions improve is predicated on the decisions about how to deal with financial institutions in crisis. According to some, if there is a financial bailout or loan, the real estate market conditions could improve in 6 to 12 months, earlier than the forecasted 2 to 2.5 years.
Riverside Country existing home sales were up 48.6% with foreclosures representing 43.6% of all July sales in southern California. On a more positive note, the number of existing home sales in California remains above 400,000 per month with July showing a 15.3% increase in sales over June and a 43.4% increase over June of 2007. The supply of unsold inventory has dropped from 10 months to 6.7.
The real estate market conditions provide an excellent opportunity to step up in size and value in homes. We are not seeing as much activity in this market and it will remain slow until such time that sellers and buyers agree on the actual sales price for the home the step-up buyer is selling.
The median price for Coachella Valley was down 8.7% to $274,000 in June. It dropped another 14% in July to $239,360. The last time it was this low was in January, 2004 when it was $268,000. California median prices dropped from $591,280 in June of 2007 to $368,250 in June of this year. If July for the rest of California followed the path of Coachella Valley, this number will have further declined as well.
The current economic conditions are broad reaching with International interests currently holding over one trillion of the American sub-prime and Alt- A mortgage loans. With the weaker dollar, the demand for US products remains strong. The US consumers spent the refunds recently received from the government which has kept the consumer market index higher that the economic reports expected. The forecast is that the economy will remain flat until the housing and construction markets begin to show a stronger recovery.
The sale of properties under $500,000 increased from just under 40% last year to 65%. In one of my reports last year, I mentioned high-end properties were still selling causing an erroneous statistic as they were holding up the median prices while the less expensive communities and new home developments were being hammered by declining sales and prices. The sales for these communities have increased in number as they are now viewed by the buyers as ‘great value.' The foreclosures represent about 2.3% of all real estate sales in Riverside County as of June, 2008. It is important to note that the Palm Desert, Indian Wells, Rancho Mirage, La Quinta area has less than 1% of the REO's.
In Indian Wells, Rancho Mirage, Palm Desert, La Quinta, Bermuda Dunes and Sun City, the shift in where the existing home sales are occurring supports that increase from 40% to 65% for those properties under $500,000. (Listed on the following page) Currently, 67.1% of all sales in June of this year were for properties under $500,000. The $500,000 to $1 Million dropped from 44.9% to 23.8% and the over $1 million properties dropped from 15.6% to 9.1%.
Price Range Sales 6/1/07-9/23/07 Sales 6/1/08-9/23/08
Total 861 930
Under $300,000 128 213
$300,000-$499,999 312 335
$500,000 to $749,999 196 160
$750,000 to $999,999 103 81
$1 Million to $1,999,999 93 59
Over $2 Million 29 27
What does this mean for Toscana Country Club? The community remains a "premier' area in the eyes of the prospective buyers. Its primary competition is those high end communities that offer custom estate lots and homes. The sale price of homes in Toscana will be dictated somewhat by the ‘value' in relationship to what they can purchase in its competitive communities. The attached report shows 8 resale homes sold in 2006 and 7 sold in 2007. This year 8 resale homes were sold. (One property was removed from the MLS to protect prices in the community as it was a short sale.)
Enclosed are the following:
- High End Property Sales Report for 2006, 2007 & 2007
- High End Community vs. Country Club sales for 2006, 2007 & 2008.
- Toscana Sales Report
It is important to note how important it is in this market to use real estate professionals with extensive experience to market the resale homes as is evident with 85% of the resale home sales in Toscana and nearly 65% of the sales representing both buyers and sellers represented by these professionals this year. I am pleased to be the agent who sold the first resale home in the community back in January of 2006. Since then I have listed and sold a number of properties. Currently, I have 4 wonderful properties listed plus a custom estate lot on the market. If you know anyone who is interested in purchasing a property in Toscana, please let me know or provide them with my name. They will receive first class service.
Diane R. Williams
Associate Broker/Premier Director
Windermere Real Estate