Indian Ridge CC 2005 3rd Quarter Report
Dear Indian Ridge Resident:
Enclosed is the 3rd Quarter Report on Home Sales in Indian Ridge for 2005. The summer was fairly quiet with only 8 homes sold during the 3rd quarter. Once again the increase in values held fairly steady as opposed to the increases we experienced in the first two quarters.
The forecast for the real estate market is that the only "bubble" in real estate is all the media's articles about the bubble. We should experience a soft landing with increases in 2006 from 8 to 10%. Current inventory is over 4100 homes in the desert, days on market are lengthening as sellers hold to higher prices and buyers less anxious to meet the high prices. Of the 42 most popular golf course communities, only 928 homes are for sale leaving the remainder of homes (nearly 3100) in non-golf course communities or areas. The only time in history the home prices dropped in California since the 1906 San Francisco earthquake was in the early 90's. This was a result of the heavy job loss which is not expected to take place.
According to Leslie-Appleton Young, lending history indicates only 35% of the mortgages were ARM's and more than 50% were fixed rates, 15 or 30 years. Interest rates are expected to reach 6.4% in 2006.
In California, the real estate market for August showed a 7% increase over August of 2004. The price represents a 20.1% increase year to date. The median price of existing detached homes is $568,890, up 17.1% over 2004. This is not sustainable. There was a 71% increase in million dollar home sales, a total of 33,107. This is expected to increase to 40,000 in 2006. Note the million dollar homes in some areas now include the typical 3 bedroom, 2 bath home in a nice neighborhood. Inventory remains tight with a 2.9 month supply. The long term average is 6.9 month supply that homes are normally on the market so we are still well below the average. The reason for this is the 78 million baby boomers who are still very active in the real estate market.
Home prices are continuing to rise because of the strong demand, low mortgage rates, the baby boomers, the flight from other alternative investment choices and speculation and flipping. The constraints on new construction keeps the demand for new homes greater than the number available.
The desert will continue to be a growth area. Several areas to watch: La Quinta where growth is expected to go from its current population of 35,145 to 60,900 by 2030. Cathedral City should experience a gain from 50,000 to 93,000 and the unincorporated areas should move from 76,000 to 158,000.
If you are thinking of selling your home, please call me as I have a long list of clients waiting to purchase a specific floor plan. As a full-time resident and equity golf member of Indian Ridge, I take my profession seriously and place my client's best interests first.
Diane Williams, GRI
Associate Broker, Premier Director
Windermere Real Estate
Indian Ridge Resident/Equity Golf Member