March foreclosure filings drop again!

Who do you think of when the words Mid-Century Modern are spoken?  Lucy and Desi?  Frank Sinatra? Charlie Farrell?

Or does this list ring a bell?

(Think architects……)

• Richard Neutra
• John Lautner
• Donald Wexler
• Albert Frey
• William “Bill” Krisel, Palmer and Krisel, Inc.
• William F. Cody
• John Porter Clark
• George and Robert Alexander (land developers and builders)
• E. Stewart Williams

Talk about the A Team? 

Palm Springs California was names by The National Trust for Historic Preservation  to its 2006 list of America’s Dozen Distinctive Destinations. Now any regular visitor to this city should not find that a surprise.  Add to be on a list of 12 designees?  Then in 2009, Palm Springs was designated a Preserve America City , another fine honor.  Plus we have many advocacy organizations in Palm Springs including the Palm Springs Modern Committee, Palm Springs Preservation Foundation and the Palm Springs Historical Society whose lot in life is to preserve this incredible heritage

Experience Desert Modernism in Palm Springs

It’s an easy thing to do.

First come visit this wonderful city.

Then:

• Take a small private tour  or a bus tour of the Mid-Century Modern Architecture in Palm Springs
• Attend Modernism Week each year in February. A 10 day series of events, galas, parties and open houses all designed to allow you to be a voyeur into the past.
• Shop!  Yes our shops have all sorts of Mid-Century Modern antiques, trinkets, furniture (both original and newly styled) and so much more.
• And stay in one of our many unique Small Inns Of Palm Springs which we feature on this website in great detail.  Give them a call for reservations and mention that you saw it here!

So sit back, relax and learn more about Mid-Century Modern Architecture in Palm Springs.  Its fun, Its colorful and so very sexy.

Desert Utopia: Mid-Century Architecture in Palm Springs from Design Onscreen on Vimeo.

So you want to invest in a Good Rental Investment Property in Palm Springs.  Where do you look?  What are the pitfalls? Will it pay for itself?

All very good questions.  And all ones that need an answer.

Where to begin?

Well there is always the first rule of thumb…..

LOCATION!

And to choose a location for your Rental Investment Property, one must ask a few questions:

• What type of rental do you want?  Seasonal, short-term, long-term
• Who is your target renter?  Vacationers?  Then it best have a pool.  Families?  Then it best NOT have a pool.
• What is your budget?  To be successful, a property must be cash flow positive from the get-go so the price has to be right for the rent to cover it OR you must put enough down to keep the mortgage low (or maybe just pay cash.)

How Much Rent Can I Charge?

That depends. It depends on LOCATION for one thing and duration of rental for another.  Plus is it a really NICE place or just so-so

Short term and vacation rentals demand a higher rent, must be nicely furnished and outfitted, should have a pool, and be near lots of things to do.  Long term rentals may be near schools, maybe furnished or not, and if families are your target renter, a nice yard sans pool.

How Do I Figure All This Out?

This is where The Woods/Hitt Team comes in. We are experienced Realtors in all types of investment properties and home sales.  We know Palm Springs better than most and we can offer you sage advice on location, value, rents and the like.  Plus our team can advise on mortgage questions too.

Do I buy A Foreclosure, Short Sale Or Seller Owned Home?

Great question!  This is where it gets tricky because some deals do not allow renting for a period of time or may require owner occupancy.  This is where a detail oriented Realtor can help you the most.  Would be very sad to buy Rental Investment Property and then not be able to rent it out!

Our website has the very best search tools for you to use so you can shop for a great value.  OR…… give us a call and we can help by sending you listings that fit your criteria via our local Multiple Listing Service.

Buying Real Estate now at a time when the market is fully discounted is a wise way to build equity for your future.

What value does a Palm Springs Realtor ® bring into the equation of buying a home?  Does he or she really earn that commission?  Why can’t I just do this on my own? Doesn’t the listing data provide what I need to know?

These are all valid questions to ask so maybe we can provide an answer or two. 

A Realtor Brings Knowledge

We bring lots of knowledge.  A Realtor® knows a city, yes.  But more over, they know a neighborhood or even a street and that is what really sets them apart. in this regard, they can advise you:

• Maybe that street is very busy at rush hour
• The pool faces north and will not be usable as much during that winter vacation
• The house next door is a short-term rental

Then again a Palm Springs real estate agent may say:

• The values on this street are beginning to rise due to new home owners renovating their homes
• The guy next door is a movie star
• This street has mostly snowbirds so the place is all yours 6 months out of the year.

That’s knowledge!  And this is also why the Zillow type websites of the world sell you short.  There isn’t an algorithm in the world that will provide this kind of information.  And the fancy tabs with “Walk Scores” and “Schools” and “Yelp” data….. it’s all from a database and let’s face it, that’s not very human in its ability to give you real decision-making information.

Well won’t the Selling Agent tell us that? 

Do you really think so?  They may yes, but then again, they may not.  If the home is a traditional sale, then the seller can provide that information. But if its an REO/Foreclosure, then it’s not happening!  The bank’s agent, who in many cases live 60 miles away, will say “My client has no knowledge of that”.

Then there is Data and News Analysis

So you hear on the nightly news that home mortgage rates took a tumble.  Or they spiked.  Or  Home Prices Continued to Decline in November 2011 was in the news today.  Or this happened or that went haywire.  So what!  How can a talking head on a news show somewhere know what’s happening in Palm Springs?  The answer is they CAN”T! 

So many areas of this country have micro business climates so the only way to really know what’s going on is to talk to the people who are working there.  That’s where you get the value add, that’s where you learn from their knowledge.  And that’s how you will be able to sleep at night knowing you are making the right home-buying decision.

Photo Credit: Pillars of Influence- By David Armano on Flickr; CC Licensed

Take a look at the latest Palm Springs Market Report April 2012.  For the five largest cities in the area,  Palm Springs, Rancho Mirage, Palm Desert, La Quinta and Desert Hot Springs, 2153 homes have been sold.  The bargain hunters are very happy as are buyers of all value ranges.

That’s A LOT!  And its ALL selling.

By and large, most of these are re-sales, not new construction and that shows we are working our way through the available inventory of traditional sale, Foreclosure and Short Sale homes.  2153 new home owners who are now enjoying their piece of paradise where they can enjoy vacations, retirement or just raise a family.

Take a look at the data below and then call us with your questions.  We can and will explain how buying a Palm Springs home is right for you.

Basic Stats For Palm Springs Market Report April 2012:

	1 month			1 year			15 months
	Feb 12	Mar 12	% Change	Mar 11	Mar 12	% Change	Jan 11	Mar 12	% Change
For Sale	624	542	-13.1%	892	542	-39.2%	925	542	-41.4%
Sold	130	163	25.4%	184	163	-11.4%	92	163	77.2%
Pended	204	258	26.5%	184	258	40.2%	162	258	59.3%

Totals Just for Palm Springs:

Question of the year:  How can I buy a Palm Springs Foreclosure or short sale home?  Better yet, what is the difference?  Well the answer is  right here and the differences are big.  Really BIG!

First a Foreclosure

A foreclosure is just that,  A homeowner falls behind on their mortgage and stops paying.  After a period of time elapses, which is different for every financial institution, they will begin the process to evict the homeowner.  Now our experience tells us one thing.  And if you take away only one thing from this article, know this. 

If you can’t make your mortgage payments, talk to your bank or a financial adviser.  And talk to us.  We can not offer any financial advice but we can explain what is happening and we can give you a referral to get some solid information on what to so next. 

There is a sea of information about the Palm Springs REO (foreclosure) market.  Some of it is right and some miss leading.  Some may tell you to just walk away and some may say to stay.  It’s different for each case folks so you have to do some homework.

The last thing you should do is consult with any unknown Internet or 1-800 foreclosure business.  and don’t even think of calling one of those businesses that offers to buy your home or loan so you can walk away.  Do that and you may really get into trouble!

So What Is A Short Sale?

It means just this:  You have a mortgage worth more than the value of the home.  The term also used is short pay or they call it an underwater loan.  All means the same thing.  The decision to short sell is fairly complicated and should be discussed with both your bank and a knowledgeable Realtor. Why both?  Because they both have a wealth of knowledge on the subject that come from two very different perspectives.  Its worth the time and effort to do some listening because the right decision will produce a good outcome for you.

How To Buy A Palm Springs Foreclosure Or Short Sale Home?

Again the waters are tricky.  You hear lots of TV and radio ads on the subject and it’s always someone trying to sell you a list of foreclosures.  SAVE YOUR MONEY!  This foreclosure market changes by the minute so trying to buy a list is pretty worthless and is only going to make the list guy rich. 

Really you could do some investigating on your own but better- talk to a Realtor.  Get the facts and let them help you decide on the best area for you and then find you a house.  The they will go to work as you place an offer and negotiate with the bank. 

So there really is no other way that it can happen.  We have the experience it will take to help you find a great value in your next home.  And whether its a vacation home, a place to retire or your first dream home, we will do whatever it takes to make it YOUR home!

With tourism surging and Measure J now in effect, Palm Springs is undergoing a real renaissance.   Homes are selling and shops are a humming.  Hotels are near full and the Convention Visitors Bureau reports more room bookings this year than ever!  Palm Springs Area Economy is in the Best Shape Since 2007

Here are a few facts:

1. Airline passenger traffic is up over 11% with hotel occupancy seeing double-digit increases in most months since last July.  Over 712,000 travelers passed through the gates of Palm Springs International from November through February and we now have lots of direct flights to Canada, New York City, San Francisco and other cities and hubs.
2. The list of economic indicators is growing and now stands at 110.4 which places us in the “Job Creation” category!  (The index gauges the valley’s economic health based on payroll figures and spending on tourism, construction and housing.)
3. Local hotelier Tim Ellis of the Palm Mountain Resort attributes it to a mild winter, great convention business and favorable exchange rates.
4. Downtown Palm Springs is being rebuilt.  Yes, the entire area of the former Desert Fashion Plaza is coming down (part is down on the corner of Tahquitz and Palm Canyon) and coming by 2015 will be new streets, parks, shopping, restaurants, pedestrian areas and some high tech features too.
5. We expect that this trend will continue too as gas prices force many people to take shorter trips.  In the past, we know that means Palm Springs so our economy will continue to grow

Palm Springs in well-known for its magical Hollywood past which began in the 1930′s and really took off in the 40′s, 50′s and 60′s.  You name the star and they owned a home here.  Many of the properties today still carry the name of the former owner which makes buying and selling homes a lot of fun.  And you can still take a tour of the stars homes if so inclined.

So about that home……

The median price range in the valley was $166,000 to $180,000.  The prices tend to fluctuate a great deal depending on what is selling.  It only takes one or two high-end homes selling in this market to skew the numbers.  What we see is that homes in the value range that investors and retirees want have edged up just a bit because the bargains are gone.  Investor interest has caused a slight uptick because they come in with cash and offer full price for a fixer and then flip it in a couple of months for a tidy profit.  Yes, flipping is alive and well! And Warren Buffet recently said the time is right to invest in Real Estate!

So what do you need to do to get started on buying your vacation home or retirement villa?

Give us a call!  We can answer your questions, help you search, refer you to our lending experts, and so much more. Our job is to make your home buying task easier.  We know the desert, we know the market and we can best advise you on how to achieve your goals. Yes, Palm Springs Area Economy Best Shape Since 2007 and if you visit, we will show you why.

The question of the day is Should I Retire In Palm Springs?  Makes sense to ask that question especially since it is a decision that should be made from a very informed position, right?

When it comes time to pull up roots, it might be better to ask yourself what am I looking for when I retire?  What turns me on?  What will make me smile?

• Should  the place be big fast and busy like Phoenix of fun, laid back and with a very healthy lifestyle like Palm Springs?  We think the latter.  Why would you want to retire to a place that has too much traffic, smog, dust storms and whatever when you can have all the same activities here?
• What makes me happy?  Playing world-class golf?  Tennis? Swimming? Hiking?  Biking?  Great restaurants?
• Will I love the weather?  Of course you will.  We have 330 days of sunshine each year and our Fall, Winter and Sprigs seasons can’t be beat.  But wait!  There’s summer right?  Well yes and we have a wonderful time then as well.  Sure it gets hot but there are ways to beat the heat.
• Swim
• Visit Idylwild, Big Bear, Lake Arrowhead (yes I’m name dropping big time)
• Go to the beach- the coast is  so very close
• Take a ride up the Palm Springs Tram- it’s a lovely ride and the views!
• Need I say more?
• Like world-class events?  How about a film festival (well four of them), big golf tournaments (lots of them too), Tennis- yup world-class tennis via the BNP Paribas Open.  Its one of the hottest tickets in the world!
• Music your game?  Coachella Fest, Stage Coach,
• And oh the restaurant bargains during summer…..

Now about that house.  Yes you can buy homes for less in other areas of the US.  But alas, you get what you pay for too.  Here we have condos, homes of all styles and architectural design (yes, Mid Century Modern is alive and so very well here) and they’re priced for every budget from the low 80′s all the way up to the millions! 

So if you have further questions as to whether you should retire in Palm Springs, you only need call David or Joe for more information.  Palm Springs is on the move in many ways and we will be posting more in the coming weeks about what makes this a great town!

Recently while doing the Market Study 2012 for Palm Springs, we gave some thought to the dynamics of today’s real estate market as it looked today. This is what we came up with:

• Rents Are Rising Fast
  Trulia released their Winter 2012 Rent vs. Buy Index and this is what it said:

“After years of home price declines and tightening rental markets, home ownership is now more affordable than renting in all but two of the 100 largest metros – even in expensive real estate markets such as New York, Los Angeles and Boston.”

• Buyers need to be  aware there is both Visible AND Shadow Inventory in the Market.
  Shadow inventory simply  refers to a supply of distressed properties that are about to come on the market.  Here is a Webinar on the subject.

• 
Price vs. Cost: Are they the same?
  Not at all!  The COST of purchasing the property is more than the PRICE of the home. Why?  Because price is only a part of the cost equation. The other part of the cost, assuming you are not an all-cash buyer, is the mortgage rate, loan costs and other closing costs such as escrow fees, inspections, etc. The mortgage rate to finance a purchase can have a dramatic impact on the overall cost should you have a 30 year mortgage and intend to pay it off..

•  Keep Your Eye on Mortgage Rates
  Recently, there are more people talking about the possibility that mortgage rates could begin to increase. Dan Green of The Daily Market Reports recently stated:

“The Fed sees growth coming faster than originally expected. There’s suddenly less chance that the Federal Reserve will intervene to help keep mortgage rates low. Absent Fed intervention, mortgage rates are apt to rise and Wall Street is now betting that the Fed has bowed out. With no stimulus, mortgage rates rise.”

 And from Lawrence Yun, Chief Economist for the National Association of Realtors, who recently wrote:

“Mortgage rates will be starting to rise. From the 3.9 to 4.0 percent average rate in the past five months on a 30-year fixed mortgage, the new rates will soon be in the range of 4.3 to 4.6 percent.”

That means the COST of your home will rise along with rates. What does that mean?  To wait will only mean you will pay more for your home OVER TIME.

• 
If you are in the market to buy a home, do NOT put it off any longer! Why?
  The reasons above state very clearly some of those reasons and we can tell you we are seeing a decrease in inventory and days on the market.  We also see that homes are going for 96% of asking and higher with many properties having multiple buyers all bidding at the same time.

Look for our next post that will show the April 2012 Market Report for Palm Springs

The Small Inns Palm Springs- one of our favorite topics and The San Giuliano Hotel is a perfect example of why we are writing this series of articles.  Imagine a setting with gorgeous mountain views, eight beautifully appointed rooms; some with its own private patio and Spa; some rooms with kitchenette or microwave and fridge. 

Each suite has a unique design offering such features as outdoor living rooms, a private yard, sunning area, gallery artwork by local artists and the best in hospitality and service. And all just a brief walk from the vibrant downtown shopping and restaurant district of Palm Springs!

We loved viewing the unique rooms.  They are spacious, quiet and comfortable with amenities beyond compare.  The beds have goose-down feather-beds, comforters and pillows, Jacuzzi tubs in bathrooms, granite counters and Italian tiles, wireless Internet, Flat Screen TV, cable and so much more.  Certainly all the creature comforts that make a stay memorable.

Don’t forget the Inn also offers private massage services in room on your own private patio.  And even though you can eat out, local restaurants will cater to your needs in room.  Ask for a menu upon arrival.

So place this one on your list and give them a call if interested.  Their ready staff will see to your every need.

  Sexy, chic and romantic in the desert heat!

 

If You Go:

Palm Springs has a full service International airport that is just 3 miles from the Inn. Taxi and car rental easily available.

From Eastbound I-10, take the Hwy 111 off ramp towards Palm Springs.  Twelve miles from the exit id Arenas Road.  Take a right turn and head to 375 W Arenas on your left.

Contact Information

Address:
375 W Arenas Rd
Palm Springs, CA 92262
(760) 325-7100

Email: customerservice@sangiulianohotel.com

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