Bill Morgner

I received some interesting information from Keller Williams this week that I thought was worth sharing regarding the Real Estate trends.

Loan Modification programs are reaching more and more troubled households- providing options beyond foreclosure or short sale. This is huge for the long term stabilization (potentially) of the housing market. And while all agree that we have a ways to go, in some markets (like Southern California), we are already seeing a positive several month trend in inventory reduction and price stabilization. This too has prompted a return of investor traffic and first time buyers who were waiting for signs of the bottom. Is it the bottom? Many home buyers are feeling confident we are at or near that point.

Home Sales up- Inventory Shrink. 5 month trend for home sales increase and 2 month trend for inventory reduction. While these are national numbers- the southern California (Coachella Valley) numbers have a longer track.

First time buyers dipped to only make up 29% of the total buyer market- suggesting to this report that we are seeing a "normalizing" of the market. Coachella Valley makeup based on traffic I am seeing at both open houses and coming to me as leads through my website suggest a healthy combination of 2nd home, move up and investor buyers. In some price segments (below 500k), the first time buyers in this area are struggling at winning bids on properties due to the cash buyer/investors. Banks taking "highest and best" often will take less CASH than dealing with a FHA qualified first time buyer. Easier, less hoops, a sure thing. Sound familiar?

I attended a meeting this week at the Board of Realtors where we had a group of local Coachella Valley appraisers speak to the issue of appraisal in the valley. With the market shifting quickly- (multiple offers on most homes <500k, and even some in the higher price bands being reported), it is important to understand what constitutes value from an appraiser's perspective.

Many homeowners are beginning to understand that there home is not necessarily going to pull the value they want or need. Short sales and other options are still a big need in our society and market as we continue to adjust from the bubble that we all encountered. Having said that, getting to home owners this information is not only very timely, it is also hopefully a great resource for them to review either before they invest in improvements, or prepare to put there home on the market.

GENERAL GUIDELINES IN SEARCHING FOR COMPARABLES:

GLA (LIVING AREA SQUARE FOOTAGE): 10% + or - and expanding search parameter as required if no comps are found with the standard search.

YEAR BUILT: 5 YEARS +OR- and expanding search parameter as required if no comps are found within the standard search parameter.

ONE MILE RADIUS (some exceptions are made if there are no comps within a mile or if golf course developments or different zoning uses make comps behond a mile).

At least 2 comp sales within last 3 months.

SOME ITEMS THAT CAN TYPICALLY BE ADJUSTED FOR VALUE:

Location.

Natural stone (granite, travertine, marble, limestone) counters and flooring, natural stone baths/showers.

Significant remodeling including new cabinetry, new carpet, new paint, stainless steel/high grade kitchen appliances, new doors, dual pane windows.

Significant site improvements such as professional natural stone patios, professional roofed/covered patios, custom landscape.

No single adjustment (i.e. view, location, upgrades) of an inferior or superior aspect of a comp sale in comparison to the subject property should be more than 10%.

Over-improvement of a property for the market area it is located in is a factor in valuation.

View (mostly for golf course properties).

Lot size (if significant difference in lot size).

FOR FHA:

Inspection guidelines for appraiser:

Safety, security, soundness and salability.

Utilities MUST BE ON!

If possible, agents should have utilities (electric, gas, water) turned on once it is determined that the buyer is acquiring FHA financing.

Appraiser must check all systems relating to utilities

Electrical outlets

Kitchen Appliances (if there is an opening for any appliance including refrigerator, it must be present).

Heating and air conditioning

Lights

Faucets and toilets

Auto garage door openers and sensors for safety.

Visual inspection of roof from exterior and interior through scuttle.

Pools must be filled with clean or relatively clean water and pool pump/equipment must be functioning.

Junk/debris from previous occupant should be removed (REO).

Hopefully you find this useful. And remember, if you are in the market to either buy or sell- I want to be YOUR SOURCE! Check out my website for even more information geared toward both buyers and sellers alike! You can even set up a custom search of your favorite neighborhoods by registering! At the click of a mouse, buy a house!

http://www.TopPalmSpringsHomes.com

So this is the big question. When will the bottom be here? Everyone has been asking that question, and you can go to sources that appear to have the answers, and they will give you their personal opinion. I guess- this is no more than that....my personal opinion.

I must say that my opinion is based on what we normally see here in the Palm Springs Real Estate Homes market. Summer typically causes a significant drop in traffic to open houses, to reduced volume in transactions (similar to what the NE sees in winter) - because people are not visiting the valley from around the world (typically) when the temperatures are 105 degrees. and the locals are hunkered down- either in their comfortably air conditioned houses, or in their pools. What a life! Except to realtors and those who work in Real Estate Palm Springs, it is a good time to just put up a sign that says something like "see you in the fall" and take the summer off.

Lucky for people like me, many realtors do.

But I have to say- what I described above is USUALLY what is seen this time of year. What I have seen in my open house traffic, to new customers that have signed up with me to find that perfect home (Thanks Jim and Lisa- new customers this week)- the market appears to be picking up steam. I have attended meetings at the CDAR (local Realtor association here in the desert), where they continue to talk about multiple offers (today, a lady mentioned a property that had 24 offers on it before the bank told the realtor to stop presenting offers). This is not the market we have seen over the past several years. Between my growing traffic (which should be dying down) to the appearance that investors have returned to the valley, a turn around appears to be occurring.

The big question. Is this just a bump, that will soon be followed by a continued decline, or is it truly the bottom? I have not spoken with anyone that believes that this LOCAL market is continuing to slide, in fact, the latest indications suggest that all price levels (just had a 1.8m property get multiple offers in N. Palm Springs) are beginning to pop just as temperatures begin to rise.

I was in San Diego last week for GRI class (professional designation) which was held in San Diego, and the same thing is going on there as we are beginning to see here. However, in San Diego, it's been going on for a while.

It does make sense. When you can buy a home well below even the current market construction cost, you know this condition cannot last. In fact, one gentlemen at a recent meeting I attended at CDAR suggested that the first bump up is typically pretty swift- picking up avg cost to construction cost.

Could this be the bottom? Sure could. Could we be seeing already signs of a swift SLIGHT upswing in values to correct up to construction cost? Very possible. The bottom line for any savvy investor or first time home buyer, or move up family is- are you in a position now to make a move on Real Estate in Palm Springs? If you are, you should stand up, get off the sidelines, and get in the game before you miss the big opportunity which could be evaporating just as fast as the water in my pool! The best properties are popping fast. You want that golf course home in La Quinta for 699 vs. 1.2m? Call me now- and let's get you going down the path of qualification and let's get you moving on that home deal that you will be proud to call home.

The old days of thinking of homes as being a quick source of a buck are likely behind us. From here, we only need to focus on affordability- and if you can get into the home of your dreams, act now while that home is affordable. Don't forget about the $$ that is available for purchase to some qualified buyers! The time is right. Are you ready?

For the BEST, Most Up to date, complete list of the BEST Properties in Palm Springs, Rancho Mirage, Palm Desert, Indian Wells and La Quinta, goto my website:

http://www.TopPalmSpringsHomes.com Register for free, daily alerts to new listings in your target areas! The site is also packed with useful information for both buyers and sellers alike.

Have a home to sell, and don't know who to turn to next? Bill Morgner, Broker Associate with Keller Williams Realty and http://www.TopPalmSpringsHomes.com is YOUR SOURCE for the best in online marketing strategies, and other services geared to ensure that your property presents well, and even MORE IMPORTANTLY is SEEN by buyers around the world. How likely is it that your buyer is here in the desert? Not too likely. Get you home listed with a Realtor who understand this, and spends his marketing budget on getting your home EXPOSED where it matters most. ONLINE. Some statistics have indicated that 92% of buyers and sellers begin their home purchase/sale process online- and most begin this MONTHS before they ever reach out to a realtor. If you are reading this, you are likely part of that 92% group, and i would encourage you to call me at 760-832-4000 or check out my website: http://www.TopPalmSpringsHomes.com to understand what I can do for you to make your dreams a reality, and make the home buying/selling experience as smooth as possible.

Unique People, Unique Properties, Unique Results!

TopPalmSpringsHomes.com

Bill Morgner, Broker Associate

Keller Williams Realty

760-832-4000

Beautiful day in Paradise! Palm Springs Real Estate is heating up just as the desert temperatures begin to soar! Bill Morgner, Broker Associate with Keller Williams Real Estate and http://www.TopPalmSpringsHomes.com stand poised to be THE source for both buyers and sellers of real estate in Rancho Mirage, Palm Desert, La Quinta Indian Wells and Palm Springs! A desert resident since 2002, Bill is familiar with the various communities that make up our fine Coachella Valley! With extensive marketing and Financial Services experience along with being a licensed Broker and Realtor, he is the source for today's savvy investor/buyer.

That's right! I have made the move. In the process of getting moved into my new digs, updating websites, etc- and trying to remember where I put my glasses! However, I must say that after yesterday (when my website http://www.TopPalmSpringsHomes.com) went fully live, TODAY is one of the best days! I am now expanding to a second website, adding more robust features to my clients who have homes that they MUST get noticed, and have the 3rd largest and fastest growing Real Estate Companies behind me every step of the way!

I am working on joining the Luxury Homes by Keller Williams, so I am glad to see- there will be even MORE continued good news to come!

If you are a seller-

and have been TRYING to get your home sold..but it still sits there.

are interested in placing your home on the market- to move up to that dream home that now has come within reach

are ready to get it sold NOW (motivation is everything!)

Go to my website www.TopPalmSpringsHomes.com, register on my seller's link and let's arrange a brief meeting to talk about your goals, your motivation and what I can do for you.

If you are a buyer-

get onto my website quick! http://www.TopPalmSpringsHomes.com - and begin your new home search. A simple registration and you are on your way to custom cruising of the best real estate in the Desert! Whatever is out there on the MLS- you will find in my custom search tool located at www.TopPalmSpringsHomes.com.

If you are an Investor or Buyer interested in Foreclosures:

I have already created custom searches by city to simplify your searches! look it up, check out the available photos, and either give me a call (760-832-4000), or register on my site to arrange your private viewing.

Bottom line- real estate is beginning to move in the Palm Springs, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, Cathedral City, Indio and Desert Hot Springs. Desert Hot Springs in particular is swarming with activity due to the incredible bargains that continue to be present.

I specialize too in unique, modern homes. One-of-a-kind residential real estate. However, my reach and knowledge of the entire valley makes me the obvious choice for the discriminating buyer or seller.