REAL ESTATE MARKET UPDATE
On April 17th Chief Economist Leslie Appleton-Young addressed desert realtors and stated: “We’ve recovered, we are in expansion mode. But the question is, how do we sustain? How do we sustain the housing market?” The recovery, per Appleton-Young, was driven by artificially low interest rates and low prices. She further clarified that it is a lukewarm expansion and that it will be affected by economic growth and job creation.
Increasing home prices appear to be tapering off, Appleton-Young said. The median price in the Coachella Valley increased 27.5% last year to $287,000. We are expecting an 8.2% median price appreciation this year, she advised.
Appleton-Young indicated that sellers and their agents who were too optimistic over the winter had to chop their asking prices. She sees this as a trend throughout California, not just in the desert.
She advised that inventory is still below the normal range because of the following:
- Foreclosures dried up
- No construction
- Low Mortgage rates
- Investors buying to rent
- Underwater owners are stuck
- Off-market listings are growing
Although in 2014 the brakes are being applied to the expansion, there are still opportunities for our buyers and sellers with guidance from their real estate professional.
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