Indian Ridge Country Club 2020 3rd Quarter Report
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Hope this letter finds you and your loved ones healthy and summer has treated you well despite our record temperatures. As the nation’s economy shut down in March due to the global pandemic, false predictions of a real estate market collapse ran rampant with many forecasting a 15-20% decline in sales. Now, six months later, we can tell you the state of our market reacted in the total opposite direction. Real Estate has bounced back stronger than pre-pandemic levels with summer being the new spring. Over the summer, the flood gates opened, and the pent-up demand led to record breaking sales. According to Fannie Mae, they are predicting 2020 home sales to be 1.3% higher than in 2019 and The National Association of Realtors (NAR) is predicting a 1.1% gain.
In the Coachella Valley, we have felt the influx of home buyers, many from LA, San Diego, San Francisco and other neighboring urban areas. Buyers are seeking either a permanent residence or a vacation home within driving distance from their main home. The health crisis has brought to light the reevaluation of square footage and floor plans, since working from home is the new norm and can be done from anywhere, buyers are trading in city life for a more relaxed climate. Needs are changing with the importance of office space, multi-purpose rooms, home gyms and space for family being more valuable than ever.
The out of state buyers have yet to return to the desert and when they do arrive, there will be an even greater demand for properties. Currently, highly updated homes are experiencing multiple offers within 48 hours of going active on the market. Sellers in this market should expect to go active in the MLS prior to accepting an offer to make sure they are getting the highest price possible for their home.
Nationally there are 39% fewer homes for sale today than there was same time last year. Inventory across Southern California including the Coachella Valley is at an all-time low which in conjunction with low interest rates is helping to drive home values up. As of October 1st, there were only 1995 homes actively on the market, a 27% decrease from October 2019 and far below what we have seen in previous years.
This past summer has been a very encouraging market at Indian Ridge. There were 30 homes sold this 3rd quarter compared to 16 homes in 3rd quarter 2019, almost double. The 30 homes were split down the middle with 15 in the HOA and 15 in the PUD. We have not seen this many home sold in 3rd quarter since 2003. Year – to – date, Indian Ridge has sold 68 homes, compared to 2019, we sold 69 homes year to date. Considering we were in a standstill for 4 to 6 weeks when the stay at home orders first started, Indian Ridge has shown a strong recovery and will likely surpass the previous year. Average homes sales were up 12.2% in the 3rd quarter with increases of 5.8% for the PUD homes and 11.2% for HOA homes.
According to the Country Club Home Sales Appreciation Chart, 13 of the 19 clubs we track are on target to sell more homes this year compared to 2019. Clubs like Mountain View and Rancho La Quinta have already surpassed sales from last year and many other clubs are on target to meeting or almost meeting last year’s numbers. Looking back on previous quarterly reports, we have not seen sales this strong in all clubs in quite some time.
“Coachella Valley Total Homes Sales Evaluation” shows a total of 3,352 homes sold in 3rd quarter 2020, which is a 41% increase from 3rd quarter 2019. This is a tremendous increase when you think of the weeks no homes were going into escrow or closing. Of the 3,352 homes, 10.4% were homes priced over $1 million, the highest since 2007. Home sales for properties priced under $500,000 are the lowest we have seen, representing 59% of the market which indicates the lack of inventory at this price point. All indications point to a boom in our market for the foreseeable future.
This market is exciting, and we are very enthusiastic about this upcoming quarter. Experts are predicting a strong 4th quarter which will carry into the beginning of 2021. The desire to leave metro markets seeking more affordable lower density cities will keep our desert market forging forward. If you are considering selling your home, the time is now. With inventory low you have less competition and a large audience of eager and ready buyers.
Our team will be happy to meet with you via phone, Zoom or safely in person to discuss your real estate needs. We are passionate about what we do for our buyers and sellers and would love the opportunity to meet with you. We have spent the last few months working on new marketing materials and can’t wait to share them with you in the upcoming weeks. We are honored to serve our community and proud of our accomplishments as the On-Site Sales Office of Indian Ridge. We look forward to finishing a strong 2020!
DW & Associates ~ Diane R. Baxter, Allison Renz, Heather Wong, Terrie Pena, Frank Montiforte, Kristeen Kidd, Barry Goldstein, and Laura Flannery