Toscana CC 2016 3rd Quarter Report
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Three homes sold in the 3rd quarter with all three closing in August. There are three resale homes currently in escrow. Compared to the six other high-end golf course communities I track, Andalusia, Bighorn, The Reserve, Tradition and the Vintage are on track to sell more homes in 2016 than in the prior year. However, the Hideaway is off by nearly 63% and Toscana is off about 37%. Several years ago I predicted the Hideaway’s resale market would slow down and prices would have to drop to maintain sales in the re-sale market. With lot prices so low, it became more attractive to build than purchase a higher priced resale home. The drop in re-sales in Toscana may be as a result of an increase in new home sales as the market has shown over the past few years buyers prefer new home construction than re-sales and are willing to pay a premium for the newer homes.
Not since 2005 have 23 homes sold in a third quarter in Indian Ridge. That equates to 45% of the homes sold so far this year closing escrow in the 3rd quarter: 10 homes in August and 9 homes in September. During this past year, the demand for homes has been the single family homes between $600,000 and $1,300,000. The actual sales report shows that to be true. As seen in the review of the Coachella Valley Total Home Sales Evaluation, it shows a 31% increase in sales for homes over $500,000 in the 3rd Quarter of this year compared to a year ago and homes sold over $1 Million up 28%. Referring to the Average Price Range of Homes Sold in Country Clubs for the 3rd quarter, the highest priced home selling in any of the first twelve clubs on that report did not exceed $1,300,000.
On the Million Dollar Luxury Home Market Report, it shows a high likelihood that we will sell more homes over $1 Million this year than in 2015. What is even more important to note is that there have been 10 homes that have sold for $7 Million or higher this year to date and only one of these homes was in one of the seven luxury high-end country clubs. These numbers are base on reported sales in the Multiple Listing Service so there may have been more high-end sales in golf course communities than is indicated on this report.
In the 3rd quarter of this year, 100 homes sold for more than $1 million and over 50% of the homes were outside of a country club. Twenty-six homes sold in La Quinta, thirty-two in Palm Springs and eighteen in Rancho Mirage and eleven in Indian Wells. Four of these 100 homes sold for more than $4 million with the highest priced home selling for $8 million in the Vintage. The other three homes were in Palm Springs. In addition four homes sold between $3 million and $5 million.
In 2015, 76 homes sold in the 3rd quarter for over $1 million. Million dollar sales are up 32% from a year ago. In the 3rd quarter of 2015, only four homes sold for more than $3 million with the highest priced sale at $4,500,000. Again over 50% of these homes were not in golf course communities. Five homes sold in Toscana in the 3rd quarter of last year compared to the three this past quarter.
There are 56 homes over $1 million currently in escrow with just over 50% outside of country club communities. Thirteen homes are in La Quinta, twelve in Palm Springs, fourteen in Rancho Mirage and nine in Indian Wells. Bob Hope’s home in Stoneridge is in escrow at $24,999,000.
For August, the median price for a single family home sold in California was $355,000, up 6% this year with the number of home sales up 12% compared to a year ago. Inventory is down to a 4.1month supply, a 10% drop from a year ago. Days on market is down 6% to 48 days. Keep in mind days on market is not always an accurate number due to homes being cancelled and expired out of the MLS for a multitude of reasons, and the difference between supply and demand at the various price points – all affecting the true days on market
It is projected that nationally we will see a 3% increase in the number of homes sold in 2016. In California the projection for single-family homes will be 1.3% with median price up 5%. California total dollar sales were up 12.9% in 2015 and up 6.3% in 2016.
We continue to remain on a steady path in the real estate market. Interest rates remain low for now and prices in the desert are still very good buys with all nine cities from 8.6% to 41.4% off the all time high sales prices in 2006.
If you would like a free market analysis on your home we are happy to meet with you. It has been an active year in Toscana for Kristi and I as we concentrate on selling re-sale homes and attracting buyers and other agents who normally would not consider Toscana without our reaching out to them. Some of the homes in Toscana that we sold this year, we recommended making changes to the home to make them more marketable and as a result drew stronger interest in the homes. The aerial marketing and video home tours we introduced this year drew tremendous attention and resulted in getting more calls and showings for those properties we represented.
As LUXE Directors, we sell a high number of homes over $1 million and draw from our international and national affiliation with Luxury Portfolio. We can track the countries where prospective buyers are actually seeing the homes we have listed. Other luxury agents throughout the world have the ability to contact us about homes we have available that meet their buyer’s needs.
We look forward to the opportunity to work with some of you and look forward to our winter residents returning to the desert for another active season.
Diane R. Williams Kristi Kramer
Associate Broker/Executive Luxury Director Real Estate Professional/Luxe Director
Bennion Deville Homes Bennion Deville Homes
Indian Wells Luxury Home Division Indian Wells Luxury Home Division
CalBRE #10364828 CalBRE#01938743