The 2011 market forecast is looking a bit favorable and calling for modest growth. This is being attributed to three positive factors: low home prices, ample inventory in various price ranges and eequally historical low interest rates.
Sales prices are expected to increase by up to 2 percent this year statewide. With as many as 15,000 foreclosed homes going on the market each month statewide, stressed properties will continue to be a large factor. We will also continue to see short sales as a strong force in our market place. However the drop in home prices has lowered the affordability index for many new buyers. Statewide the number of first time homebuyers has increaded up to 46%.
We are seeing buyers willing to pay just a touch more for a straight seller from a buyer rather than playing the waiting game on a short sale or buying a foreclosure. Over the past year we have also seen a big drop in foreclosures on the market and a huge increase in short sales. The time it takes to acquire a short sale has been improved somewhat as well.
All in all we have seen an increase in sales over the past nine quarters across the Coachella Valley with some cities such as Cathedral City even posting a 10 percent jump in just this past year!
The desert has always been a winter play ground and is far more affordable now than it has been in years! Please call if you are interested in making a purchase in the Coachella Valley!!!!!