FALLING PRICES, LOW RATES PROD CALIFORNIA HOMEBUYERS
Favorable home prices, record-low interest rates, and the belief that rates will rise in the near future were the primary motivators leading home buyers to purchase, according to the CALIFORNIA ASSOCIATION OF REALTORS
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We’ve seen several articles over the last week or so that point to positive developments in the Palm Springs area housing market. Locally, although median price fell 46.1% (sales rose by 38.2% from a year ago), the median price is up slightly for the month of May ‘09 over April ‘09, confirming the upward trend. The inventory declined from the prior month for the fourth straight, as year over year sales remain brisk. The inventory of homes continues to drop, falling to a 4.2-month supply in May, compared to 8.7 month supply in May 2008. If you’re not in the market for yourself, it’s certainly a great time to help children or grandchildren to get into a new home. As a straight investment, if not a gift, it makes sense to recognize the appreciation that will likely outstrip the paltry interest rates currently available. As mentioned in our previous blog “Short Sales Revisited”, the Obama Administration is planning on implementing strategies to streamline the short sale process which is long overdue and hopefully takes away the stress and frustration that up until now is customary with the short sale process. Can hardly wait ! Even with the experience we have in Short Sales, it is often very time consuming and frustrating. This new plan is a welcomed necessity. Palm Springs California real estate is showing signs of rebounding. The wise buyer knows that the bottom of the market is only confirmed in the rear view mirror after it’s a thing of the past. Rather than speculate as to whether we’ve hit bottom, savvy buyers make offers and negotiate. Recent headlines indicate an economic recovery may have begun. |
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