Indian Ridge Country Club 2020 2nd Quarter Report
*CLICK HERE to view our entire Quarterly Report including STATISTICAL REPORTS, or view the report by clicking “View PDF Document” located to the right of this page under Diane’s photo.
A new quarter is upon us, and we hope this letter finds you and your family healthy and safe during these interesting times. While it feels more like a marathon than a sprint, we are still adapting to this new normal. The unprecedented pandemic will continue to require a collective effort, from all of us, to keep pushing forward.
Summer is here and so are the buyers. The pandemic has consumers reevaluating what is “the perfect home?” Many now consider the once alluring city life to be less desirable and buyers are looking for a more suburban and less complicated lifestyle. According to Realtor Magazine, “nearly 30% of people living in high-density areas say the pandemic is prompting them to want to move by the end of the year.” As evident by the activity over the last few months, we are now seeing a large number of buyers from Los Angeles, Orange County, San Diego and San Francisco. Many are in search for a permanent residence, while others are seeking an easily commutable second home.
With interest rates at an all-time low, buyers are more enticed to find that perfect home to relocate to. The Coachella Valley has long been considered one of the few areas in Southern California where homes are affordable, and with our charming desert lifestyle, it is the perfect combination. In a recent market report released by California Desert Association of Realtors, Coachella Valley has seen a significant increase in daily sales, while Los Angeles and Orange County have decreased. The report shows Single Family Homes sales in the Coachella Valley has been increasing for at least six weeks and is now near pre-quarantine levels.
During the second quarter, Indian Ridge sold 15 homes as compared to second quarter 2019, where 32 homes were sold. This decrease was expected considering we entered the second quarter during the pandemic and followed by a stay-at-home order. Indian Ridge currently has 13 homes in escrow, 3 of which are over $1 million. A total of 38 homes have sold in Indian Ridge so far this year. Of the 38 homes, million-dollar-plus properties represented 26% of the sales.
Current home prices have remained stable. While the HOA and the PUD have both trended up. The price per square foot in the HOA has increases by 10.4% and the PUD increased by 9% as compared to a year ago. The continuous lack of inventory in Indian Ridge and around the Coachella Valley is creating a high demand and prices should continue to rise. We are in a sellers’ market, with homes selling much faster and highly upgraded or updated homes are selling even faster and at a much higher price.
According to the “Country Club Home Sales” report, which shows the price appreciation (or loss) of the 19 local country clubs we track, Indian Ridge and Morningside are the only clubs with a higher price appreciation. The number of homes sold in each quarter year-to-date also indicates some clubs have been more affected by the pandemic than others. The clubs with sales at or above 45% are predicted to be on track to sell at the minimum, the same number of homes as last year, or more.
The “Coachella Valley Total Home Sales Evaluation” report shows the second quarter of 2020 is down 40% as compared to the second quarter of 2019. However, homes sold over a million represented 9.4% of sales, which is up from 8.2% in 2019. Sales for homes sold over $500,000 represented 37.2% of sales, which is up 31.4% from last year. It is evident that home values are increasing. The “Sales Update by Cities” also reinforces this trend of rising values and the “V” shape recovery as days on market has dropped to 77, average sales price is up 10.3% and the average list to sales price is at almost 97%. Home values are definitely increased as evidence by the reports.
Of the 38 homes sold in Indian Ridge this year, our team represented 24 of the homes sold, equating to a 63% market share. In the last 10 days, we have closed 11 escrows (2 outside IRCC) with over 12 million in sales. Experts are calling for Summer to be the new Spring, with continuing homes sales through the end of this year. Despite these wild times, the real estate market has held on and will continue to do so.
At DW & Associates, we are grateful for the success so far this year and looking forward to a strong rest of the year. Our office prides ourselves by taking to only the highest safety precaution and continues to be in touch with our clients by expanding our digital platforms with E-blasts, Facebook Boosts and Instagram. We conduct FaceTime showings and network with a substantial reach of outside agents. We also offer virtual tours for our listings where buyers can feel as if they are walking through with 360-degree views of all rooms. For sellers, zoom meeting/listing appointments have become increasingly popular.
If you are considering selling your home, now would be a great time to give us a call. With historic low inventory and low interest rates, there are less houses to choose from, placing sellers in the most optimal position with little to no competition around. There may not be a better time to sell than now!
We welcome any questions and comments, please feel free to contact us anytime at the office, 760-776-7070 or you can email us at email@example.com.
DW & Associates ~ Diane R. Baxter, Allison Renz, Heather Wong, Terrie Pena, Frank Montiforte, Kristeen Kidd, Barry Goldstein, and Laura Flannery