The Palm Springs Desert Resorts area in Southern California is one of the most beautiful and renowned resort areas in the world. As a result, this small but thriving area boasts a very active and dynamic real estate market. The Palm Springs Desert Resorts area consists of seven contiguous cities beginning with Palm Springs on the west end of the valley stretching to Indio on the eastern end about 35 miles away. Other resort cities include La Quinta, Indian Wells, Palm Desert, Rancho Mirage and Cathedral City.
Like many resort and sunbelt areas in the United States, the local real estate market has gone through some challenging times over the past few years. However, right now may be the best time to buy real estate in the greater Palm Springs, California area.
Why is now such a great time to invest in Palm Springs area real estate? It's because property values have corrected as much as 60 percent off of the market boom highs of 2004 through 2006 - with many residential areas having regressed all the way back to early 2000s price levels. There are some truly incredible buying opportunities throughout the Palm Springs Desert Resorts area.
The table was set several years ago for the present-day buying opportunities. Here's what happened. From 2002 to 2005, similar to the real estate markets of neighboring Las Vegas and Phoenix, local real estate sales increased by double digits annually, as did appreciation. During this overheated market, there was too much flipping going on. Consumers were buying homes as short-term investments, so demand became far in excess of supply. As a consequence, developers ramped-up the activity way beyond their normal levels to meet the incredible demand. New homes, golf course condos and resale properties alike were bought and sold nearly everywhere you looked in order to meet an artificial demand. Property inventory levels were very low. Lottery sales at new home developments were not uncommon. This high level of sales activity was common not only in Palm Springs, but throughout the seven cities comprising the Desert Resorts area. The La Quinta Real Estate market, in particular, was an extremely sought after and high demand market.
Then, in 2006 the market started to falter and homes in the greater Palm Springs area weren't selling like they were just a few months earlier. Shortly thereafter, financial markets began to constrict, the sub prime debacle took place, ARM's began to reset, the stock market crashed, the unemployment rate rose rapidly, and the overall U.S. economy eventually went into one of the worst recessions since the Great Depression of the 1930s. During this time, the property appreciation rate we thought would never end - halted altogether. Supply began to far outpace demand and real estate values began to spiral downward. The rest is history.
The good news is - now may be the best time in years to get back into the market and buy a home in the Palm Springs area. Many current buyers that have recently jumped from the sidelines feel that even if we were to have another slight value correction, the regression back to early 2000s sale prices warrants getting back in the real estate market - right now.
On top of the current incredibly attractive property prices, two other major favorable factors are in place, a large supply of property inventory - and historically low financing rates.
Now may be the best time to buy a home in the Palm Springs, California area.
Brad Schmett is Broker Associate at Luxury Homes by Keller Williams in La Quinta, California. Brad is an expert, helping sellers best position their real estate for sale - and helping buyers maximize their real estate investment. To learn more about Brad's services and/or real estate in the La Quinta, California area, visit http://laquintarealestateinfo.com/.
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