Toscana CC 2007 3rd Quarter Report
Dear Toscana Resident:
The real estate market in Toscana has been sluggish since the first of the year. There are currently 11 homes on the market, two are estate properties. The current days on market of those homes available average 152. When the estate homes are removed the time frame drops to 96. For sold properties the average days on market has been 110.
I currently have a fabulous Cortona 921 with south/southwest facing views being offered furnished. The response to this property has been tremendous. The property next to this home, the large Cortona 923 is currently the only home in escrow. An Amalfi 621 and Amalfi 623 sold this quarter. Both had been on the market for a long time. As you will see on the attached data sheet, they sold for considerably less than the comps for all other properties.
Toscana remains in competition with other similar clubs such as Hideaway, Tradition, Bighorn, Vintage and to some extent Indian Ridge. A number of prospective buyers do not play golf and would love to have another membership available to them.
According to John Seymour in his "What's Hot and What's Not" newsletter, the mortgage industry is in great turmoil with the liberal lending programs that were offered during the bullish real estate market. Since last year, 31 major sub-prime mortgage lenders have closed their doors or are on the brink of bankruptcy with another 12 in trouble. The elimination of piggy back loans may dry up 5% of the buying market.
Days on market as of March 20th were 103 days compared to 77 days March 20, 2006. Notices of default normally average 33,615 quarterly. In the fourth quarter of 2006, it jumped to 37,273. While Bernanke and the Feds still worry about inflation, some are concerned about falling into a recession. With all the conflicting news about the economy and the real estate market, buyers remain reticent and many sellers are holding firm to their prices. Those properties that are selling are the ones where buyers see value in price in relationship to the upgrades and location of the property.
Current inventories nationally show a 6.6 month supply at the current sales pace. This is down from 7.4% last October. In the desert 8,852 homes were on the market by mid-February compared to 7,046 a year ago. In
comparison to 1400 resale homes in 2004, 3,200 in spring of 2005.
According to the Desert Sun in their March 21, 2007 issue, overall homes sales dropped 25% in February compared to the same month a year ago. New homes sales dropped 43%, resale homes fell 21%. The 2007 sales are estimated to be less than 2006, even though both years will be ranked as historically good years. The anticipation is as it takes longer to sell with more homes on the market, we will now see a decline in prices for homes sold as those seriously interested in selling will reduce their homes in order to sell.
As of 4/13/2007, I have over $18 million in sales for 2007. I remain a top agent with Windermere and have earned the Diamond Achievement classification as a top producing professional in the Coachella Valley. I take my profession seriously and put my clients' best interests first. Having been in the valley since 1986, I know the
desert. Having been in charge of course rating in the desert since 1989, I have a firm knowledge of all the golf course communities in the desert.
While the market has slowed and it may take longer to sell property, we still have several favorable factors working in the Coachella Valley's favor: premier resort destination attracting baby boomers, job growth remains strong and interest rates remain historically low.
Let me know if I can be of service to you. Have a great summer.
Diane Williams, GRI
Associate Broker, Premier Director
Windermere Real Estate