Latest price trends for Mid-Century Modern

Mid-Century Modern in Palm Springs

Price trends for Mid-Century Modern Neighborhoods in Palm Springs Not all homes built in the 1950’s and 1960’s fit the modernism scheme, but there are certain neighborhoods in the city of Palm Springs that have more than others.  To judge a neighborhood, all the neighbors should be considered, so this review includes everyone – good, bad and non-mid-century homes. The Desert Area Multiple Listing Service can help give an overview of these mid-century modern neighborhoods, because it partially identifies them in its database by Subdivision.   To put it in a historical perspective sales over the last 10 years are considered, and a third-order polynomial trend-line is used to summarize the sales and smooth out variations.  Trend-lines can favor the most recent sale, so the most recent trend may be distorted by a higher or lower than average price sale. The following neighborhoods contain a good number of mid-century modern homes, […]

Read More

This post is in: Palm Spring Real Estate Market Trends, Palm Springs Area, Palm Springs Modernism, Palm Springs Real Estate Market Statistics

 




Have Home Prices Hit Bottom?

Have Home Prices Hit Bottom?

We can’t really know, but there may be a reason that if they go lower, they won’t stay there. The long-term inflation rate of U.S. housing is around 2.5%. Let’s look at the Case-Shiller Home Price Index for some high-tier markets. The graph below has the Index for three western U.S. cities, with an added line that shows the normal long term rate of housing price inflation of about 2.5%. This long term “normal” growth rate shows that home prices should be about 30% higher now than in 2000. Prices in Vegas and Phoenix have dropped below this long term value, and there should be upward pressure based on this historical trend. Higher than average inflation is expected and will further increase this upward pressure. L.A. may be a bit different, as it may have been still feeling the effects of the 1990’s California bubble and recession when the Index […]

Read More

This post is in: Palm Spring Real Estate Market Trends, Palm Springs Modernism, Palm Springs Real Estate Market Statistics, Trends

 




High-End Home Sales

High-End Home Sales

We don’t have a Case-Shiller Home Price Index for our area, so we make do with what we have.  We can’t simply track prices say above $1 Million, because that is a changing population – a house that sold for $1.5 M a couple of years ago may have sold recently for $950,000, and we would lose that change based on a price limit alone.  As a substitute, I use homes over 4,000 square feet in size.  The vast majority of these homes sell for above $1 Million.  I chose only 4 cities, as they are of similar age and have many similar homes.  The graph shows a growing number of sales.  The average sales price was around $1.8M for the first three months this year, but dropped to around $1.4M in April.  As prices drop, sales increase.    – Wayne Longman

Read More

This post is in: Cities in Palm Springs, Palm Springs Area, Palm Springs Modernism, Palm Springs Real Estate Market Statistics

 




Home Prices – Will History Repeat Itself?

Home Prices – Will History Repeat Itself?

We see a lot of news about home prices, both good and bad.  Nobody can predict the future, but we might find clues about it in the past.  The Case-Shiller Home Price Index, captured the California home price collapse in 1990, as shown in the first chart – for high-tier Los Angeles homes.  Then the prices had increased by about a factor of two, just like our last bubble, as shown in the second chart.  The scale in the first chart has been expanded to show they were very similar bubbles, even to their relative size, shape, duration and the false recoveries in 1991 and 2007.  Maybe we can use the 1990’s experience to project our current recovery.  If so, the blue bars show that it took seven years from the peak to just get to the point where prices began a true recovery.  Our price recovery may not start until 2013, and this is […]

Read More

This post is in: Palm Spring Real Estate Market Trends, Palm Springs Mid-Century Modern Homes, Palm Springs Modernism, Palm Springs Real Estate Market, Palm Springs Real Estate Market Statistics, Sales Strategies/Tactics & Tips for Palm Springs Real Estate, Trends

 




Mixed Signals

Mixed Signals

The most recent Case-Shiller index shows the average price of all home sales in Los Angeles from November through December increased by about 0.3%.   When you dig a little deeper,  over the last three reports it shows  a slight decrease for high tier homes (those over about $500,000), and about a 5% increase for homes below that price limit.  On the face, it means healthier low-end market activity, with supply perhaps slightly lagging demand, resulting in higher prices. On the other hand, other and more recent-activity factoids are the national 20% drop in February consumer confidence, and an 11% drop of new home sales in January.  Freddie Mac now reports that a record 4 percent of its borrowers are at least three months delinquent on their loans and in danger of foreclosure.  Our own Desert Area MLS shows a 20% drop in closings in January, while the inventory of bank-owned and […]

Read More

This post is in: Palm Spring Real Estate Market Trends, Palm Springs Area, Palm Springs Real Estate Market Statistics

 




Effect of Bank-Owned On Non-Bank-Owned Prices

Effect of Bank-Owned On Non-Bank-Owned Prices

Bank-owned properties (aka REO’s) are known to affect surrounding property prices.  This effect might be seen in past sale prices in the well-defined Palm Springs community of Vista Las Palmas.  This graph shows a decrease in the long term price trend of Non-REO homes at about the time the REO homes were sold.  The effect isn’t that great because REO’s are generally priced low, but close to the market.  There may even be early signs of price strengthening as they fade into the past.  As always though, prices are determined by Buyers.  – Wayne Longman

Read More

This post is in: Mid-Century Modern Enclaves, Mid-Century Modern Homes For Sale in Palm Springs, Palm Springs Area, Palm Springs Modernism, Palm Springs Real Estate Market Statistics, Trends

 




Influence on of REO sales on MCM

Influence on of REO sales on MCM

We recently did our Business Plan to Sell a 3 bedroom Mid-Century Modern for a client in Rancho Mirage. Naturally, part of that is to look at recent sales activity. Here’s what we found; Each bar shows how many homes were sold in that month. This supports our conclusion that sales are increasing, even if prices aren’t . So we looked at the next layer of the onion, and found things aren’t quite so good. 12 of the 17 sales this year in this group were distressed sales (bank-owned or REO, and short sales). Still, non-REO sales are increasing. Furthermore, there is only 1 Active short-sale property in this group on the market, as of the date of this writing, so regular sales have less competition at the moment. Not shown here is a detectable trend that distressed sale prices are slightly increasing. We might conclude that REO sales have […]

Read More

This post is in: Mid-Century Modern Homes For Sale in Palm Springs, Palm Spring Real Estate Market Trends, Palm Springs Modernism, Palm Springs Real Estate Market

 




Sales Decline In Large Expensive Homes – A Symptom

Sales Decline In Large Expensive Homes – A Symptom

high-end sellers should price below this no-man’s land

Read More

This post is in: Palm Spring Real Estate Market Trends, Palm Springs Modernism, Palm Springs Real Estate Market, Palm Springs Real Estate Market Statistics, Sales Strategies/Tactics & Tips for Palm Springs Real Estate, Trends