La Quinta, California

La Quinta, California
Desert Luxury

Desert Luxury Realty

Thank you for visiting my blog. When you choose Mary Williams, as your real estate agent, you are working with a team of seasoned professionals who cater to your every real estate need. Buying or Selling your home does not need to be full of hassels or needless pressure. Take it easy and enjoy the luxury of the desert. I look forward to assisting you with your search or sell of your home. Contact me today!

Friday, March 22, 2013

Jumbo Loans in the Desert

It’s a Big Comeback - Resurgences in Jumbo Loans help Revive the Luxury Housing Market in the Desert. While the rest of the housing industry is making some modest (and in some areas significant) strides luxury markets in the local La Quinta and surrounding area.

According to the National Association of Realtors sales of homes in the $750,000.00-$1,000,000.00 range are up 38.7% from a year ago and the $1,000,000.00 and up range are up 25.7%.

So why the sudden surge in luxury homes in the Desert? 

One big player in that game is the reappearance of Jumbo loans.

These loans cover purchases of over the FHA and Fannie Mae maximum of $417,000.00. 

Jumbo loans aren’t a new type of financing; but were all but completely impossible to find after the bubble burst in 2008 due to a lack of secondary market purchasers. Recently they’ve been coming back in a big way: for the four weeks ending February 22nd, new jumbo activity was up 60% from the same period a year ago, according to Mortgage Daily.

 Recently interest rates for Jumbo loans were close behind those of conventional loans, a phenomenon that is pretty uncommon. Because these loans aren’t backed or guaranteed by the government they pose a larger risk to the lender, which means in turn that they generally carry a higher interest rate.

So who is eligible for a Jumbo loan? As stated above they pose a greater risk to lenders than conventional or other types of loans, so the qualifications for approval are much more stringent. A person who qualifies for a Jumbo loan probably has a credit score of at least 760, a bank account sporting a years’ worth of mortgage payments or savings, 30 percent down payment, etc.

 With good interest rates and more lenders willing to make a Jumbo loan things are looking up for vacation markets across the country.

Wednesday, March 13, 2013

Why is there such low inventory in The Desert?

If you have been looking to purchase in the La Quinta and surrounding area, you soon find out there are fewer homes on the market as in the past. Why does the Desert have low Inventory?
  1. 29% mortgages are still underwater = some sellers just can’t sell yet
  2. 80% of investors are buying and holding and renting instead of fixing and flipping
  3. Pocket listings are becoming more commonplace.
  4. Some sellers are still unrealistic with pricing = not real listings
Market Conditions:
  • 30% of all transactions are all cash …………….Lending is still tight
  • It is predicted that interest rates will remain low until unemployment is at 6.5%
Check out the charts below to see how the real estate trends in the Desert have fluctuated over the last several years. (click on each photo below to enlarge)

Market Trends_Page_12Market Trends_Page_17Market Trends_Page_09Market Trends_Page_10
Market Trends_Page_11
Market Trends_Page_32 If you don't see your community or information you'd like to know, call me today at 760-567-7282.

Tuesday, March 5, 2013

La Quinta Housing Market Up for January 2013

48639 Legacy Drive, La QuintaIt has been a long time coming, but it does look like La Quinta and the Desert Area housing market is making a recovery – and this time, it may stick around. January, the median price for all existing Desert area condos and newly built homes increased 32.9% to $220,000 from last year, San Diego-based DataQuick recently reported.

This continues the upward trend we started to see last year of 31% in December; 21% in November; 26% in October; 19% in September; 19.8% in August; and 20% in July, DataQuick reported.

Existing homes prices increased 22% year-over-year in January to $365,000 from $286,000, according to the California Desert Association of Realtors, based solely on the Desert Area Multiple Listing Service. The average sale price of a condo rose to $215,000 in January from $192,000 in January 2012, CDAR reported. Out of the 2,800 single-family homes and 1,228 condos listed in January, a total of 789 homes sold in the Desert in January, about the same as in January 2012, DataQuick reported. Inventory in the Desert area is considerably less now than January 2009 when 8,188 homes were listed or 9,134 homes listed in January 2008. There are fewer distressed homes on the market in the Desert as well. Approximately 23% of single-family home sales in January were bank-owned or short sales, down from 45% in January 2012, CDAR reported. Only 15% of condo sales were distressed properties, down from 38% the same month a year ago. Riverside County on the whole had a 6.5% increase in sales volume in January with 2,858 sales, and the median price rose 25% to $226,000, DataQuick reported. Across Southern California, sales rose 10.6% in January, and the median price jumped 23.5% to $321,000. 2013wa-carets-january-coachella-valley-monthly-sales-stats-by-city All this shows the real estate market in the Desert is making a solid recovery. John Walsh, DataQuick president commented, “Let’s not forget, that we’re still climbing out of a deep hole from the housing downturn. Prices in many areas are at least 30 to 40% below their peaks.” But our area market is getting better and fewer homes in the Desert area are so far under water and many are now at the water line or above. If you want to know the market value of your home and how it compares to the other homes listed in La Quinta or others in the area, call me at 760-567-7282.