An Important Update for the Palm Springs Area Market

It’s time for a market update. Let’s take a look at how current conditions are contributing to rising prices and declining supply.

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 What’s going on in our local real estate market?

In general, we’ve been in a strong seller’s market recently. This can be determined by looking at the “months of supply” ratio, which measures the balance of supply and demand. In this case, supply refers to our current available inventory while demand refers to sales.

A balance of low supply and high demand is what leads us to a seller’s market in the realm of real estate. Our current ratio, which is at 4.2 months, is the lowest May 1 figure we’ve seen since 2013.

And the average number of days on market this April was 64—the lowest figure for that month in the last five years.

Returning to the subject of supply, let’s discuss how price range can impact these figures. For all price brackets below $700,000, the months of supply ratio is below six months. Homes at and above the $800,000 price point have experienced considerable improvement in terms of supply.

Now is a great time to enter the market.

Inventory, though, continues to shrink overall. As of May 1, there were 3,622 units available on our market. This is 870 fewer units than were on the market at this time last year.

Diminishing inventory is one half of what’s been driving up home prices, recently. And if typical seasonal patterns persist, inventory is likely to continue its decline until September.

Taking a closer look at appreciation, Cathedral City, Palm Springs, and Palm Desert stand out as the three local cities with the greatest price momentum for detached homes. These cities have 12-month gains of 15.6%, 12.7%, and 11.8% respectively.

Palm Springs has been the region leader in terms of price, with a current median of 
$656,100. This is 9.3% above the previous all-time high we saw in 2006.

With all of these considerations in mind, now is a great time to enter the market. Sellers have a great opportunity to take advantage of current market conditions. Buyers considering using financing to purchase a home are facing some urgency at the moment, though, as the impending rise of interest rates will negatively impact purchasing power.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

4 Reasons Your Insurance Company Will Drop You

There are a number of things that could prompt your insurance company to drop your coverage. Today, I’ll be going over four common reasons this can happen.

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Homeowners usually see their payments to the home insurance company as a necessary evil. The coverage they offer protects your home, your belongings, and your investment. Still, shelling out thousands to an insurance company can hit your wallet hard. It may seem like a large financial burden, but did you know that an insurance company can choose to drop you altogether? Violating the terms of your agreement, not paying your premiums, or committing fraud are all examples of how this can happen. But, your coverage can also be jeopardized for other reasons. If your insurer feels you or your home are too risky to cover, you could have a hard time finding another company that will provide you with coverage. Today, I’d like to share four common reasons an insurance company will drop you: 1. You have an old roof. This might surprise you, but having an old roof can prompt your insurance company to ask you to replace it. If you don’t, they may drop your coverage. The average lifespan of a roof is 30 years. After that length of time, your roof will become more susceptible to issues like water damage. Since water damage is the most commonly submitted home insurance claim, insurance companies want to ensure your home is not at risk. Nevertheless, age alone won’t trigger a non-renewal. If your insurance company notices issues with your roof, you can expect a letter asking that you make repairs.

Don’t use your insurance policy as a maintenance policy by filing claims that barely meet your deductible.

2. You have too many claims. This might sound unfair, but it happens. Insurance companies will most likely drop a policy if you file more than one claim in the same policy term. Insurance is based on averages. The average consumer files a claim every nine or 10 years. So if you file more than that, the insurance company won’t see you as profitable. Pay close attention to how often you file claims, especially if you bundle your insurance. 3. They don’t want to cover a specific area. This might happen if the insurance company is finding that too many claims are coming in from a certain area or state. If your area is prone to crime, flooding, or fires, the insurance company may decide to cease coverage. Thankfully, there are other ways to pursue coverage if this happens to you. You can always discuss your options with an independent broker. 4. They have an issue with your pets. Insurance companies may exclude certain pets from their policies. If your pet is exotic or considered high-risk, this may pose a problem for your coverage. With all of these things in mind, remember that there are steps you can take to stay in your insurance company’s good graces. Perform regular maintenance and make necessary repairs as soon as you become aware of them. Don’t use your insurance policy as a maintenance policy by filing claims that barely meet your deductible. Have money set aside for regular maintenance and repairs, and save your insurance for major issues. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon

Boost Your Home’s Value With These 4 Steps

There are four steps you can take in order to prepare your home to sell for top dollar.

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Every seller wants to get as much money as possible for their home, but few know how to accomplish this. As it turns out, there are four steps you can take to prepare your home to sell for top dollar. 1. Do the ordinary updates. These updates include replacing rotten wood, taking care of a leaky roof, getting rid of mold, and remediating other water intrusion issues. It’s also a good idea to put a new coat of paint on the walls. Buyers tend to look over houses very carefully, so it’s important to check out every inch of your home and update what you can without breaking the bank. 2. Consider remodeling or updating your kitchen. If it looks dated, repaint the walls, install a new backsplash, and purchase new, energy-efficient appliances. If you’re going to repaint, consider using low VOC paint, as it has fewer harsh chemicals and is more eco-friendly.

A great outdoor space can make or break a sale.

3. Improve your outdoor environment. A great outdoor space can make or break a sale, especially here in the greater Palm Springs area, where we enjoy so many months of incredible weather. Update your landscaping by installing drought-tolerant flowering plants or perhaps an outdoor seating area. For larger projects, you might want to consider creating a covered outdoor entertainment space, or possibly some hardscaping with pavers and a firepit. If your pool needs cleaning or resurfacing, go ahead and do that. Additionally, be sure to take advantage of any views that your property has. 4. Prioritize energy efficiency. More buyers today than ever are looking for energy-efficient installments. To take advantage of this, consider replacing your windows, buying Energy Star appliances, or installing LED canned lighting. These features are not only appealing to prospective buyers, but they can also lower your energy bills while you’re still living in the home. If you have any questions about this or other real estate topics, please feel free to give me a call or send a text or email. I’d be happy to answer them for you.