Is the Housing Turnaround Really Here?
In some areas, its been a struggle for four years as prices fell and rose in false hope.
If a housing turnaround is really here, is it time to buy now? What is going on around the US and in Palm Springs? Well the signs and indicators are all up again but will it last this time and why?
In some areas, including Palm Springs, the market is starting to recover. Prices are rising for certain segments of our market e.g. the low and middle segments. Sales have been strong this year and home builders are framing new homes and condos here.
We are in many sales this year and the successful transactions prove this is true.
Like the economic recovery that has its ups and downs, some areas of the country may continue to see ups and downs in home prices too. Here in Palm Springs, our market is shows an uptick in pricing with exception being the high-end homes.
Why are some areas of the US still in trouble?
That answer is simple- many are still under water on their loans. That won’t change for some time and so short sales will continue and therefore prices for some will continue to fall. Read more on foreclosure.
And any setback in the still-fragile economic recovery could easily reverse this trend in housing prices, too.
The trend in Palm Springs and other areas is clear. S.&P./Case-Shiller index reported this week that sales prices for existing homes rose in April for the first time in months. Housing starts have increased. And the National Association of Realtors said Wednesday said pending home sales climbed to their best level since September 2010 when the first time buyer credit ended.
Other indicators of market health that sunk during the bubble, like the ratio of housing prices to income,bounced back up.
Factors in this change are rising rents and low mortgage rates as a powerful inducement to potential buyers and renters who would prefer to own and investors who have become landlords.
The influx of investors is a major reason that the market is looking stronger. A large number of our sales here are investors who are looking for a way to get a good return on their money. With great values in the sub 200K market, its a perfect way to invest.
At first they bought properties to flip. Now they are looking at potential rental properties in the kinds of gated, planned communities that are so prevalent in the desert area.
There are still reasons for caution. Some areas may experience some further declines so please check with a Realtor for the best information your area. Here in Palm Springs, we see strong and continued demand from those retiring and others looking for a winter or vacation home.
The number of homes for sale has fallen for more than a year, according to the National Association of Realtors. Some owners are waiting for prices to rise while others just can not do a short sale.
Take a look below at the many homes we have on the market right now that would qualify as those whose price is a great value and would not likely see an additional decrease unless there were very bad economic news.
1 - 10 of 28.
See more Investor Specials.
(all data current as of 5/25/2013)
$124,900 : 15470 Avenida Mirola, Desert Hot Springs3 beds, 2 full baths
$137,000 : 66190 Santa Rosa, Desert Hot Springs4 beds, 2 full baths
$92,900 : 16670 Avenida Rambla, Desert Hot Springs3 beds, 1 full, 1 part baths
$103,900 : 66822 BUENA VISTA AVE, Desert Hot Springs2 beds, 2 full baths
$99,000 : 65799 5th Street, Desert Hot Springs3 beds, 1 full, 1 part baths
$135,000 : 67255 Hacienda Avenue, Desert Hot Springs2 beds, 3 full baths
$115,000 : 13393 Del Ray Lane, Desert Hot Springs3 beds, 2 part baths
$119,000 : 65565 Acoma #122, Desert Hot Springs3 beds, 2 full baths
$130,000 : 10454 SANTA CRUZ RD, Desert Hot Springs3 beds, 2 full baths
$138,000 : 13925 Cactus Drive, Desert Hot Springs3 beds, 2 full baths
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