Harold Watts' Palm Springs Real Estate Blog

I saw this picture on Flickr and it really grabbed my attention. At first glance, you see the black arrows going in an upward direction and you think "Ok, it's a bunch of arrows going up." Now look a little closer at the negative space of the photo and what do you see? You see the shapes of white arrows going in a downward direction. Everything we see in this picture is based on our mind's perception.

This correlation of perception is the same with the Palm Springs Real Estate market. If you listen to the local and national news, real estate is still in a downward spiral. Ask a local Palm Springs Realtor (like me) and I will tell you that the city had a 20% increase in home sales for June 2010 over last year. Here are the stats from the Desert Area MLS:

• June 2010 Home Sales in Palm Springs: 87 June 2009 Home Sales: 72
• Average Sales Price: $457,002 Average Sales Price: $406,279
• Average Price per SF: $192 Average Price per SF: $158
• Average Square Ft.: 2215 Average Square Ft.: 2046
• Days on Market: 91 Days on Market: 116

As you can see by the numbers, there were 15 more homes sold in June 2010 as compared to June 2009 and this equates to a 20% increase in sales.

There are a few other pieces of information that I found interesting as I was doing my research. The 2010 average sales price increased by nearly 9% over 2009 due to the fact there were 9 homes in Palm Springs with a price tag of $1 million dollars or more had sold during the month of June.

The average time a home stayed on the market for June 2010 was 91 days, compared to 116 days for June 2009. I am seeing more owners continuing to be realistic in the pricing of their homes for sale.

Even though nearly 48% of the homes sold were distressed properties (bank-owned and short sales), the Palm Springs Real Estate market continues to move forward. Don't forget: All real estate is local.

Here's the bottom line: You can either be negative (arrows down) and believe what you hear on the news, or be positive (arrows up) and take advantage of the wonderful buying opportunities that are available to you.

YOU DECIDE.

A few weeks ago, a group of us got together for my friend Jason's 39th birthday and we had to decide on where to go to dinner and celebrate.

Having lived in Palm Springs for over 11 years, there are many fine restaurants to choose from but there are only a handful of places that I frequent on a regular basis.

When the suggestion was made to go to Roscoe Grill for dinner, I could not remember the last time I had dined there. Once I walked into the restaurant, all the good things about this establishment came flooding back into my memory.

Roscoe Grill opened in 2006 and is located in the former building that was Churchill's Fish & Chips. It is one of those restaurants that I never think about because it located between a car wash and a tire store and I drive by the place everyday and not give it a second thought.

Once we get inside, my perception of the former fish house changes. We are seated at our table and as I am taking it all in, I feel like I am in a big city restaurant, not Palm Springs. The high-back brown leather booths and the soft lighting give Roscoe Grill an intimate, cosmopolitan feel. The best thing I remember about my last visit to Roscoe was the menu.

Roscoe Grill is currently running their Summer Special in which 3 courses dinners, which include a starter, entree, and dessert, start at $16.50. I had the Lobster Mac & Cheese (pictured above) with the Caesar Salad and the Fruit Sorbert, all for $19.50. This dinner was soooo good!!

The culmination of our dining experience was when Jason (pictured above) made his birthday wish and blew out the candle on his Triple Chocolate cake. I hope gets what he wished for.

After this dinner, Roscoe Grill is now added to my list of places to dine in Palm Springs. You have to check it out!!

Roscoe Grill is located at 665 S. Palm Canyon Dr., just south of the Downtown area. For a complete list of menu items, you can go to RoscoeGrill.com

Having been in the real estate business since 1999, I have come across almost every type of situation imaginable: Someone died in the house, divorced spouses fighting with each other, probate courts, flooded homes, and ghosts. I thought I had seen and experienced everything. Until today.

I met with a couple who had called my office a few weeks ago looking for information about selling their home. Based on the initial conversation, I knew they were in financial trouble. They bought their home in 2006. The couple, along with their 2 children, had intended to live their "American Dream". Then came the recession.

I listened intently as they explained their story and what led them to their current predicament. The husband, a general contractor, has seen his business decrease over 60% due to the current recession. The wife was laid off last year from a very high paying, lucrative position. They have not paid their mortage payments in over 6 months, their property taxes are late, and are having troubles paying their other bills. A Notice of Default has now been filed against their home and are now facing foreclosure.

I could see she was starting to cry. The husband tries to comfort his wife. I could see that both of them are scared and do not know what to do.

In my 11+ years in the business, this was probably the most heart-breaking appointment I ever went to. For last few years, we have all heard in the news about the collapse of the financial & housing markets and the effects that it has had on the American public. Now I am seeing the face of the American public for the first time.

I was trying hard to keep my emotions in check and stay in control but the next question that was asked of me nearly floored me: "Can You Help Us?". Quietly in my mind, I think to myself: "No one has never asked me for my help as a Realtor". I now have a responsibility to these people, and I say to them, "Yes I Can".

I explain to them what options are available to them and determine that a short sale would be the best course of action for them. We sign the necessary papers and now their home will go on the market for sale. I gather up my papers and I say goodbye to the couple and their kids.

I get into my car to drive back to Palm Springs and I start to cry. I don't know if was their situation or that they asked for my help that made me cry. Either way, it touched my heart.

Past Due photo courtesy of PhotoBucket

I was browsing Twitter the other day when I came across a re-tweet from Miami Beach Realtor & uber-Tweeter, Ines Hegedus-Garcia. The online article she was referencing was from the Wall Street Journal and was called "Luxury Home Sales Bounce Back". The story was talking about how the luxury home market was making a comeback due in part to better financing conditions, realistic home prices, and a continuing buyer confidence.

In the city of Palm Springs, this premise is holding true. Of the 77 homes that sold in May 2010, there were 8 homes that had a price tag of $1 million dollars or more. During the month of May 2009, there was only 1 home that sold for over $1 million. This represents a 700% increase over last year!!

The home that tops the list is the home fondly known as the Elizabeth Taylor Estate (photo above), which was sold by Scott Lyle Realtors (my office) for a whopping $5.2 million dollars. This home is located in the tony neighborhood of Old Las Palmas and represents the largest sale price for a home in Palm Springs in the last seven years.

Here is a list of the other luxury homes that sold last month:

1455 N. Vine Ave- Casa de Plata- the former Howard Hawks estate- 5 bedrooms, 5 baths, nearly 5400sf of living space in Old Las Palmas, sold on May 23, 2010 for $2,383,333.

955 N. Prescott Dr.-Custom ultra-contemporary home in Old Las Palmas, 4 bedrooms, 4.5 baths, 3876 sf of living space, over 1/2 acre lot, steps to Uptown Palm Springs. Sold on May12, 2010 for $1.8 million.

840 N. Prescott Dr.- 1938 Spanish Hacienda in Old Las Palmas, 5 bedrooms, 7 baths, 4817 sf, spectacular mountain views. This home sold on May 26, 2010 for $1.3 million.

425 W. Via Lola- Home of author Sidney Sheldon, 7 bedrooms, 8.5 bathrooms, 7370 sf of living space, 2/3 acre lot, large sparkling pool, great Old Las Palmas location. Sold on May 14, 2010 for $1.1 million.

431 S. Monte Vista Dr.- Great Tennis Club location, steps to Downtown Palm Springs, 3 bedrooms, 3.25 bathrooms, natural desert landscaping, pool with waterfall feature. Sold on May 26, 2010 for $1,075,000.

360 W. Pablo Dr.- Remodeled 1942 villa in the Tennis Club neighborhood of Palm Springs, 3 bedrooms, 4 bathrooms, western mtn. views, 3030 sf. Sold on May 5, 2010 for $1,070,000.

3173 E. Bogert Trail- 2002 contemporary home in the Andreas Hills neighborhood of Palm Springs, 4 bedrooms, 4.5 baths, 4628 sf of living space, panoramic western mtn views. Sold on May 28, 2010 for $1,050,000.

Let's see next month if this trend in the Palm Springs luxury real market continues through the second half of 2010.

The Palm Springs Real Estate market is singing the praises to the office of Scott Lyle Realtors (where I work) for the successful sale of the home, fondly known as the Elizabeth Taylor Estate. The home, located in the tony neighborhood of Old Las Palmas, was purchased by an out-of-area couple for $5.2 million dollars. They discovered the home as they were riding their bicycles through the neighborhood and called my broker from the "For Sale" sign in front of the home. Scott Lyle Realtors represented both the buyer and seller in this transaction.

This is the highest price for a home sold in the city of Palm Springs this year. The only time I can remember a home selling for over $5 million dollars in the city of Palm Springs was the architecturally significant Elrod House, designed by John Lautner. This home was sold in November 2003.

As the office rejoices in the celebration of this monumental sale, I still remember the day we took the listing. Picture it, December 2007. I just finished writing a blog post, What $9.2 Million Will Buy You in Palm Springs, about our new office listing, the Elizabeth Taylor Estate.

Originally built in the 1930's and now completely renovated, this Spanish Estate features 7 bedrooms, nine and a half baths, impeccable finishes, and over 10,000 square feet of living space.

This magnificent home sits on over one and half acres of lushly landscaped grounds featuring mature palm trees, lavish fountains, a spectacular open-air entertainment pavillion, a breathtaking reflecting pool, and one the very finest pools in Southern California.

The Master Suite has approximately 2000 feet of luxurious space, the 4 room suite features an original 2-sided fireplace with a Carrera marble hearth, and vaulted ceilings of up to 14'6".

The Grand Master Bathroom is a sight to behold. A solid honed Carerra marble tub sits majestically under a multi-tiered candelabra chandelier with tear drop crystals.

Exquisite features include an oversized shower with body sprays, rain shower and steam. A crystalline framed fireplace sets the stage for complete and total opulence.

The oversized French doors lead to a private patio with a beautiful 9'7" x 5' 7" in-laid tiled spa.

Now after 2 1/2 years, 3 price changes, an economic downturn, and lots of advertising, I am glad the property was purchased by a very deserving couple. The Elizabeth Taylor Estate is by far one of the most beautiful homes I have ever seen.

Before I finish, a big congratulations needs to go to my broker, Scott Lyle. Way to go, Boss!!!

With the recent sale of a $10.1 million dollar home at Bighorn and now the sale of the Elizabeth Taylor Estate, this is going to give the luxury real market of Palm Springs the momentum it has needed for a long time. All my best to the new owners!!