Palm Springs, CA

While Christmas and the holidays this time of year conjur up visions of snowcapped mountains and pine trees Christmas time traditions are alive and well in the Southern Californian desert communites of Palm Springs and Palm Desert. Check out this link to read more

When you think of Palm Springs, what comes to mind? Palm trees, large estates, swimming pools, movie stars? Oh wait, that's the Beverly Hillbillies!! Jethro and Ellie Mae would have been right at home here in Palm Springs. Ever wonder about what these luxury homes in Palm Springs are selling for?

Here's some information about the most expensive home sales in Palm Springs for October 2009. All information was obtained through the Desert Area MLS.

Overall, there were 3 Palm Springs home sales topping $1 million during the month of October 2009, out- pacing the 2 homes sold in September and the 2 home sales in August 2009.

Currently, there are 98 homes on the market in Palm Springs with list prices topping $1 million. Despite all the activity of the lower priced homes in town, the luxury real estate market in Palm Springs is starting to gain some momentum.

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Here are the 3 homes that sold for over $1M dollars in Palm Springs in October 2009:

3223 E. Bogert Trail- $1,500,000- 3 bedroom, 4.5 bath, 5000sf Desert Contemporary home sitting on 1/2 acre of land in the Andreas Hills neighborhood of S. Palm Springs. This home closed escrow on 10/13/09.

855 Via Las Palmas- $1,049,000- This 5 bedroom, 4 bath, 2800sf Mid-Century home is one of 15 "Swiss Miss" homes that were built in the Vista Las Palmas neighborhood. High ceilings, walls of glass, and views to die for are some of the features of the special home. Closed escrow on 10/30/09.

898 N. Avenida Palmas- $1,020,000- 3 bedroom, 3.5 bath, 3257sf home on a 1/3 acre lot in the Movie Colony district of Palm Springs. Home was built in 1999 and is within walking distance of Downtown Palm Springs.

Photo courtesy of Flickr

About the Author:

Harold Watts of Scott Lyle Realtors has been a REALTOR in Palm Springs since 1999. Focusing on the 2nd & Vacation home market, Harold has been helping Real Estate Buyers and Sellers achieve their real estate goals. If you want to know what is happening with the Palm Springs Real Estate market, give Harold Watts a call at 760-218-8209 or email him at Harold.ScottLyleRealtors@gmail.com

There is no question the tax credit for new home buyers has contributed to the continuous rise in home sales. With the deadline approaching, many were rushing out to find the ideal home prior to the end of November. The good news is Congress has decided to extend the tax credit, while including many more this time around.

Since January first-time homebuyers have been able to get a whopping $8,000 tax credit thanks to the economic stimulus package that was put in tact. While the plan was originally scheduled to expire at the end of November, the Senate decided it was the right move to extend and expand on the tax credit.

While first-time homebuyers and those who have not owned a home in the last three years can still get up to $8,000, the expansion also includes people who have owned their current home for at least five years. If you fall into this category, you can take advantage of a $6,500 tax credit. In order to qualify, whether a new homebuyer or not, you will need to sign a purchase agreement by April 30, 2010 and close by June 30.

Many assumed the tax credit would be extended, but it was getting closer and closer to the deadline worrying some. With this extension, Sen. Johnny Isakson believes this will be the last one to come. If this is the case, it gives you until April to find your new dream home.

The tax credit for homebuyers is one of two tax breaks now that totals out to $21 billion as the Senate has included it in a bill that extends unemployment benefits. The other tax break allows companies that are losing money recoup taxes they paid on profits earned over the last five years.

Although it is terrific for homebuyers to hear about the extension, the economy is still struggling greatly. Sen. Max Baucus believes it is up to Congress to continue acting creatively in order to get the economy back on the right track. Over time these kinds of tax breaks will contribute to people fighting through the recession and finding steady jobs, said Baucus.

Outside of homebuyers, the real estate industry has really been pushing for an extension on the tax credit. While 1.4 million first-time homebuyers have taken advantage of the incredible deal, the National Association of Realtors has estimated that 350,000 would not have purchased a home without the credit. This goes to show you what a little help can do to get people to make big decisions.

In all, the extension and expansion is going to cost the government around $10.8 billion in lost taxes. Although there was some questioning behind the decision, in all it passed the Senate by an overwhelming 98-0 vote.

There are other details you will need to pay attention to as the credit is only available for the purchase of principal homes that are $800,000 or less. It is phased out for those who make $125,000 a year or more and joint filers cannot have incomes above $225,000. Anyone that is in the military serving outside the United States will be able to take advantage of the credit until June 30, 2011 for at least 90 days.

The tax break will help industries as well such as retailers, homebuilders and newspapers that may have suffered losses in 2008 and 2009. There is a smaller version of the tax break for companies who have revenues of $15 million or less that will be enacted in February. This will help provide companies a quick source of cash.

Yesterday, it was officially announced the Federal Homebuyer Tax Credit of $8000 for first-home buyers has been extended past its expiration date of November 30, 2009.

Based on the information that is available, homebuyers have until April 30, 2010 to purchase a home and it must close escrow no later than June 30, 2010.

This is good news for the real estate community and for the many people who have been "sitting on the fence" and waiting for the perfect deal.

I have preaching to everyone since January 2009 that the time to buy real estate in Palm Springs is NOW.

Foreclosed homes have been driving the Palm Springs real estate market since the beginning of the year and the prices here "bottomed" out in August. Does this mean you have missed your chance on buying a home? No, it just means that the prices of homes has leveled out. Here is a look at the homes sales for the month of November in Palm Springs:

November 2009 Home Sales: 68 Foreclosures Sold= 34 Short Sales (Pre-Foreclosures)= 6

Avg. List Price: $381,814 Avg. Sold Price: $362,337 Avg. Price Per Sq. Foot: $171 DOM= 100

November 2009 Condo Sales: 50 Foreclosures Sold= 11 Short Sales (Pre-Foreclosures)= 2

Avg. List Price: $184,296 Avg. Sold Price: $171,215 Avg. Price Per Sq. Foot: $136 DOM= 82

As you can see, 50% of the homes purchased in the month of November were foreclosures and sold for 95% of the listing price.

Now is the time to take advantage of the extension of the Federal Homebuyer Tax Credit and buy the home of your dreams in Palm Springs.

Photo courtesy of Flickr

About the Author:

Harold Watts of Scott Lyle Realtors has been a REALTOR in Palm Springs since 1999. Focusing on the 2nd & Vacation home market, Harold has been helping Real Estate Buyers and Sellers achieve their real estate goals. If you want to know what is happening with the Palm Springs Real Estate market, give Harold Watts a call at 760-218-8209 or email him at Harold.ScottLyleRealtors@gmail.com

As with every other area around the country, the Coachella Valley region saw a near-record number of sales over the past 27 months. While this is encouraging, it is discouraging considering the fact that many closed at incredibly low prices.

If you are a first-time buyer, there has never been a better time to buy. There has been an increase in first-time buyers by 47 percent compared to all home-buyers. And even if this is not your first time around the block, it is still a tremendous time to look into the real estate market.

It is believed that sales prices will continue to stay at the low mark they are at in 2010. While this is promising for home buyers, this means agents will have to close more deals then they did two to three years ago just to see the same business thresholds.

It is forecasted that sales will be sluggish in the mid- to upper-level home market. Coachella Valley and other parts of the country will face some troubling times as homes will see a significant decline in overall value and equity.

Homes that used to be around the $800,000 mark are now falling below the $500,000 mark. As you might expect, this is attracting many first-time buyers with the incredibly affordable home prices on remarkable homes. Not only is this appealing to first-time buyers, but it is also the perfect opportunity for people to move up into a larger home.

What some are taking advantage of is selling at a 5 percent hit and then buying a home for 10 to 15 percent off. People are wheeling and dealing any way they can to take advantage of the market.

One thing is for sure; the market is still healing as there are countless issues that remain relevant. Something that has become quite common today is cash buys due to the low prices. In addition, real estate agents are becoming familiar with multiple bids as many buyers will place a bid on several homes hoping to get one.

In 2006, 40 percent of all homes sold below the asking price. Today, that number is at a staggering average of 80 percent creating a long-run average of 69 percent. These kinds of numbers make it incredibly difficult to predict where the market will be in five years.

Anyone can throw a book of statistics out there and hope for the best. However, it is the plan of action and what really happens that is going to matter. Right now statistics show incredibly low prices on homes for sale resulting in a tremendous surge in home buyers.

Add onto the equation the tax credit that is good until at least November 30 and you have first-time buyers jumping at every home they can. It is even a promising market for people looking to move from one home into a larger home due to the fact that once high-priced homes are selling for average prices.

While all is good for home buyers, there really is no say where the real estate market will be down the road do to the inconsistent and constantly changing industry today.