Indian Ridge Country Club 2018 Annual Report
*CLICK HERE to view my entire 2018 Annual Report including STATISTICAL REPORTS, or view the report by clicking “View PDF Document” located to the right of this page under my photo.
Happy New Year! What a great year for Indian Ridge home sales and memberships. In total, 85 homes were sold in Indian Ridge in 2018. Of the 85 homes, our office represented 52% of those sales. Not since 2004 and 2005 when 162 and 127 homes sold respectively, has the club seen that many sales in a year. Of the 85 homes sold in 2018, 45 homes were in the HOA and 40 in the PUD. The average price per square foot at year end was $248(HOA) and $285(PUD). Back in 2004 these numbers were $265 and $354. So, while our prices have not appreciated back to the boom years in real estate here in the desert, we remain an affordable and desirable market for those looking for a resort home or even a primary home.
Comparatively, the urban areas of Los Angeles, San Francisco and Seattle to name a few are experiencing a slowdown. The main reason for the slowdown is affordability. These markets have experienced such a burst in home appreciation over the past few years that younger buyers simply cannot afford the homes in these markets. We expect home values to drop in these areas and over time lead to better affordability. The positive news for the desert real estate market is that our properties remain a very good buy. The price a buyer will pay for an equivalent square foot home in the desert is considerably less than what they would pay in a metro area. Our home values have remained relatively flat over the past seven years with a gradual increase in home values for those homes that have been recently upgraded. We have also seen a lot of interest in sellers trading up or down for a larger or smaller home.
In addition to the urban markets mentioned above, the fourth quarter has seen the national housing market shift into a lower gear. This is not necessarily a negative, but more of a correction due to the increase in home values. We may not experience as much growth as we have seen in 2018, but that does not mean we are heading for an economic collapse. The real estate market collapsed in 2008 largely due to bad lending practices. Many different lending guidelines have been implemented since then to protect the buyers in hopes that we never repeat the big boom followed by the dramatic crash of the market.
The average mortgage rate for a 30-year fixed rate “Jumbo” loan, greater than $453,100 rose to 5.01% with a 20% cash down payment. The average mortgage rate for an Adjustable Rate Mortgage (ARM) rose to its highest level since 2011, 4.47% up from September’s ARM rate of 4.34%. Millennials will account for 45% of mortgages, with baby boomers a 17% and Gen Xers at 37%.
In California, existing single-family home sales in November totaled 381,400 properties, down 3.9% from October and down 13.4% from November 2017. The median home price was $554,760, down 3% from October and up 1.5% from November 2017. Within the six counties of Southern California, the median home value in Riverside County jumped 6.1% to $380,000. Statewide active listings rose for the 8th straight month, increasing 31% from the previous year. As of November, year to date sales were down 4.6%. The average days to sell a home in California rose from 22 days to 28 days. The average statewide price per square foot for an existing single-family home was $282 in November 2018, up from $277 in November 2017.
The housing forecast for 2019 in California indicates a modest decline of 3.2% in existing home sales. The California Association of Realtors (CAR) predicts the median home price will increase by 3.1% to $593,450 in 2019. With home appreciation tapering back and inventory improving, serious buyers are in a better position to purchase.
Looking at the Coachella Valley Home Sales Evaluation, 10,295 homes sold in 2018. This is the highest number of homes sold since 2005. Homes under $500,000 represent the largest volume with approximately 72.5%. Homes selling for more than $500,000 were at 27.5%, the highest since 2007. We ended the 4th quarter of 2018 selling 2,035 homes. This represents 247 fewer homes sold than in the 4th quarter of 2017.
If you look at the “Sales Update by Cities Report”, 11 of the 14 Multiple Listing Areas (MLS) in the desert show an appreciation in average sales price while the number of homes sold are down. The “Country Club Home Sales Appreciation” shows that of the 19 country clubs we track, 11 clubs sold more homes in 2018 than in 2017. Average sales appreciation or depreciation did not appear to relate to the total number of sales in each country club. Approximately 71 more homes over $1 million dollars sold in 2018 representing a 12% increase.
In Indian Ridge, with 85 homes sold in 2018, this is a direct result of all the wonderful upgrades to the club and to excellent club management. The interest level of buyers specifically looking in Indian Ridge has grown over the past three years. As the On-Site Sales Office, we are grateful to be part of this great team, working hard to enhance the country club for both current owners and potential buyers. Nearly all the buyers who are looking in Indian Ridge are interested in a membership, which in the end will help keep costs down and maintain excellent financial position.
It’s exciting to see all the remodeling that is happening in Indian Ridge on the exterior and interior of homes. We continue to see that homes that have been recently remodeling have sold faster and for higher prices than homes that have not been upgraded in a number of years.
We looked at average sales prices per floor plan in Indian Ridge, comparing 2013 to 2018. What is truly apparent is that the interest in each floor plan varies from year to year. What is consistent is homes that were in their original condition brought lower sales prices, lowering the average sales price overall considerably. As more and more homes in the community are upgraded, they should help increase the average sales price for each of the floor plans.
Over the past year, as buyers have had home inspections completed for homes in escrow, they are finding the following items showing up more frequently:
- Leaks in the connectors on the back of the refrigerators causing water damage repair costing thousands of dollars. Keep in mind that just like the plastic valves under the sinks and behind toilets, the plastic connectors at the back of the refrigerator get brittle and break. You might consider hiring a handyman to replace the plastic connectors behind the refrigerator before a leak occurs.
- Leaking shower pans. Having a qualified plumber test your showers will help in determining whether there is actual leakage that needs repair. Sometimes this can be an easy fix and other times it can cost thousands. Tile may need to be removed to repair and matching tile is no longer available.
- After about 14 to 15 years the outer glass on skylights crack or break. Most of the time it does not cause water damage, but buyers will more than likely ask for them to be replaced. A roofing contractor can easily replace the glass to prevent any potential water damage.
I am pleased to announce that as of the first of January, Allison Renz and Heather Wong are now my partners. Their hard work and dedication have awarded them the opportunity to share in the operation of my business. Allison, Heather and I along with our other team members Terrie, Kristeen, Laura and Frank are readily available to assist you whether you are selling, buying or just have a real estate question.
Our goal is to represent your best interest in getting you the best value for a home in an ever-changing market and are available to you whenever our services are needed.
We look forward to seeing you around the club!
Diane R. Baxter, Associate Broker/Executive Luxury Director
Diane Williams Team ~ Allison Renz, Heather Wong, Terrie Pena, Frank Montiforte, Kristeen Kidd, and Laura Flannery