It's April 2009 and the real estate market in La Quinta has shown improvement this year. The realtors are currently focused on short sale opportunities and sellers who are willing to consider offers well below what many of them paid 3-6 years ago. Foreclosures have slowed a bit and inventory is down. There is speculation that another wave of foreclosures will hit the market within 4-8 weeks.
The next wave of foreclosures will feature luxury homes and lots yet seen in such numbers. Thus far the foreclosures have been reflective of the $250,000 and down price range. We will now see million dollar homes at an extreme discount.
The ratio of foreclosures and short sales is about two-thirds of all sales right now.
There have been some big dollar sales too. I am aware of three home sales in La Quinta which are in excess of $3 million each. Sales in excess of $1 million have begun to hit the books too.
It's a buyers market and there is money to borrow with low interest rates. This might be one of the premier buying opportunities we have realized in many years. If you have an interest in buying this is not the time to be riding the fence, it's time to get into the game!

It's Crunch Time

Foreclosure sales are driving the market. Buyers want properties when the market is near or at the perceived "bottom." In La Quinta approximately two-thirds of detached single family homes and condominiums fall within the foreclosure and short sale categories.
August sales in La Quinta saw 95 closed escrows (source: lqnews.com) with buyer activity on the rise. Many foreclosures are now accepting multiple purchase offers and buyers are not always getting their first choice of homes. Frustrated with the results of their efforts some are now setting their sights on good deals within the standard home market place. New home sales in August saw the lowest sales figures nationally in 17 years.
Underwriting guidelines from lenders are stringent and FICO scores over 800 are even being scrutinized. FHA loan programs seem to be solely responsible for keeping borrowers in the market for a home at this time. Some lenders of prominence are now declining to loan on second home jumbo loans. That's a big chunk of our La Quinta market!
At this hour we are awaiting some resolution to the proposed "mortgage bailout" and the stock market is skeptical of a quick decision on the part of our House and Senate.
The next week will be one to remember and the demand for La Quinta real estate is on the rise.

2008 to date

It's late May and the Real Estate market in La Quinta has been challenging. Foreclosure opportunities have had their strong pockets in La Quinta and the prevailing mindset of buyers has been that of deal seekers. La Quinta Cove's single family homes have sold well as most are REO properties and many were sold for under $200,000. Gated golf communites were very quiet until Mid-March and about half of the sales in these areas were over $1,000,000.
Sales in the North La Quinta home tracts have been relatively quiet compared to the southern side of town.
It's a completely price driven market, buyers are calling the shots and the Banks are very conservative in their lending decisions. The Canadian buyer has emerged to benefit from the devalued american dollar. Many prospective buyers have indicated they are planning a summer trip to the desert to capitalize on what may be the best buys of the year.
Economists in the know feel the recession is upon us and the housing market will be the key indicator as to when we are coming out of these hard times. Most analysts indicate we have a solid 12 months until foreclosures begin to dwindle and home prices begin to stabilize.
Please check this Blog weekly for further information.
We welcome your input and experiences in either trying to sell your property or in trying find the right buying opportunity.

La QUinta Home Source Blog

This blog will contain current infomation and details about current events, changes in the real estate market and developments in the city of La Quinta and surrounding areas.