This is good news to any property owner! The recovery is surpassing most expectations. Rising demand and many years of sluggish new home construction have forced home prices to rise at a new double digit pace in many parts of the country and our state. With many buyers chasing to few sellers the home prices are projected to rise next year as well.
Fast rising home values are clearly good for home owners but price increases that are far in excess of income growth are not good for buyers and not a healthy development for the economy. The only way for price increases to be tamed is for more inventory to hit the market.
We are starting to see the tractors get fired up and a few new walls going up in the Coachella Valley. New construction is finally rearing its head again but it will be a bit before there is a flood of new homes for sale. That will continue to slowly drive up the home prices around the polo club so get it while the prices are still low!!!
The entire Palm Springs Valley is recording huge increases in property values. My Short Sale listings/closings have dropped dramatically in 2013 further supporting the projections for a strong next couple of years in our valley. Be careful NOT to buy too much house! Loans are still at historic lows, but tougher to qualify for..this should help to keep a lid on a price/sf explosion, which is what set us up for our downfall the last go round. Still some spectacular values here in the valley.