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Is Now a Good Time to Buy or Sell Real Estate in Palm Springs?

Is Now A Good Time to Sell My Palm Springs House?

Traditionally, spring is one of the busiest times of the year for real estate. However, the coronavirus outbreak—and subsequent stay-at-home orders—led many buyers and sellers to put their moving plans on hold. In April, new listings fell nearly 45%, and sales volume fell 15% compared to last year.1

Fortunately, as restrictions have eased, we’ve seen an uptick in market activity. And economists at Realtor.com expect a rebound in July, August, and September, as fears about the pandemic subside, and buyers return to the market with pent-up demand from a lost spring season.2

But given safety concerns and the current economic climate, is it prudent to jump back into the real estate market?

Before you decide, it’s important to consider where the housing market is headed, how it could impact your timeline and ability to buy a home, and your own individual needs and circumstances.

WHAT’S AHEAD FOR THE HOUSING MARKET?

The economic aftermath of the coronavirus outbreak has been severe. We’ve seen record  unemployment numbers, and economists believe the country is headed toward a recession. But people still need a place to live. So what effect will these factors have on the housing market?

Home Values Projected to Remain Stable

Many Americans recall our last recession and assume we will see another drop in home values. But the 2008 real estate market crash was the cause—not the result—of that downturn. In fact, ATTOM Data Solutions analyzed real estate prices during the last five recessions and found that home prices actually went up in most cases. Only twice (in 1990 and 2008) did prices fall, and in 1990 it was by less than one percent.

Many economists expect home values to remain relatively steady this time around. And so far, that’s been the case. As of mid-May, the median listing price in the U.S. was up 1.4% from the same period last year.4 

Demand for Homes Will Exceed Available Supply

There’s been a shortage of affordable homes on the market for years, and the pandemic has further hindered supply. In addition to sellers pulling back, new home starts fell 22% in March.5 In fact, Fannie Mae doesn’t foresee a return to pre-pandemic construction levels before the end of 2021.6

This supply shortage is expected to prop up home prices, despite recessionary pressures. Fannie Mae and the National Association of Realtors predict housing prices will rise slightly this year7, while Zillow expects them to fall between 2-3%.8 Still, that would be a far cry from the double-digit declines that occurred during the last recession.9 

Government Intervention Will Help Stabilize the Market 

Policymakers have been quick to pass legislation aimed at preventing a surge in foreclosures like we saw in 2008. The Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress gives government-backed mortgage holders who were impacted by the pandemic up to a year of reduced or delayed payments.10

The Federal Reserve has also taken measures to help stabilize the housing market, lower borrowing costs, and inject liquidity into the mortgage industry. These steps have led to record-low mortgage rates that should help drive buyer demand and make homeownership more affordable for millions of Americans.11

HOW HAS THE REAL ESTATE PROCESS CHANGED? 

As the pandemic hit, real estate and mortgage professionals across the country revised their processes to adapt to shifting safety standards and economic realities. While these new ways of conducting business may seem strange at first, keep in mind, military clients, international buyers, and others have utilized many of these methods to buy and sell homes for years.

New Safety Procedures

The safety of our clients and our team members is our top priority. That’s why we’ve developed a process for buyers and sellers that utilizes technology to minimize personal contact.

For our listings, we’re holding online open houses, offering virtual viewings, and conducting walk-through video tours. We’re also using video chat to qualify interested buyers before we book in-person showings. This enables us to promote your property to a broad audience while limiting physical foot traffic to only serious buyers.

Likewise, our buyer clients can view properties online and take virtual video tours to minimize the number of homes they step inside. Ready to visit a property in person? We can decrease surface contact by asking the seller to turn on all the lights and open doors and cabinets before your scheduled showing.

The majority of our “paperwork” is also digital. In fact, many of the legal and financial documents involved in buying and selling a home went online years ago. You can safely view and eSign contracts from your smartphone or computer. 

Longer Timelines and Higher Mortgage Standards

The real estate process is taking a little longer these days. Both buyers and sellers are more cautious when it comes to viewing and showing homes. And with fewer house hunters and less available inventory, it can take more time to match a buyer with the right property.

In a recent survey, 67% of Realtors also reported delays in the closing process. The top reasons were financing and buyer job loss, but appraisals and home inspections are also taking more time due to shifting safety protocol.12

Securing a mortgage may take longer, too. With forbearance requests rising, lenders are getting increasingly conservative when it comes to issuing new loans. Many are raising their standards—requiring higher credit scores and larger down payments. Prepare for greater scrutiny, and build in some extra time to shop around.13 

IS IT THE RIGHT TIME FOR ME TO MAKE A MOVE?

Is Now the Right Time to Move?The reality is, there’s no “one size fits all” answer as to whether it’s a good time to buy or sell a home because everyone’s circumstances are unique. But now that you know the state of the market and what you can expect as you shop for real estate, consider the following questions:

Why do you want or need to move?

It’s important to consider why you want to move and if your needs may shift over the next year. For example, if you need a larger home for your growing family, your space constraints aren’t likely to go away. In fact, they could be amplified as you spend more time at home.

However, if you’re planning a move to be closer to your office, consider whether your commute could change. Some companies are rethinking their office dynamics and may encourage their employees to work remotely on a permanent basis. 

How urgently do you need to complete your move? 

If you have a new baby on the way or want to be settled before schools open in the fall, we recommend that you begin aggressively searching as soon as possible. With fewer homes on the market and a lengthier closing process, it’s taking longer than usual for clients to find and purchase a home.

However, if your timeline is flexible, you may be well-positioned to score a deal. We’re seeing more highly-incentivized sellers who are willing to negotiate on terms and price. Talk to us about setting up a search so we can keep an eye out for any bargains that pop up. And get pre-qualified for a mortgage now so you’ll be ready to act quickly.

If you’re eager to sell this year, now is the time to begin prepping your home for the market. A second wave of infections is predicted for the winter, which could mean another lockdown.14 If you wait, you might miss your window of opportunity. 

How long do you plan to stay in your new home?

The U.S. real estate market has enjoyed steady appreciation since 2012, which made it fairly easy for owners and investors to buy and sell properties for a profit in a short period of time. However, with home values expected to remain relatively flat over the next year, your best bet is to buy a home you can envision yourself keeping for several years. Fortunately, at today’s rock-bottom mortgage rates, you can lock in a low interest rate and start building equity right away.

Can you meet today’s higher standards for securing a mortgage?

Mortgage lenders are tightening their standards in response to the growing number of mortgage forbearance requests. Many have raised their minimum credit score and downpayment requirements for applicants. Even if you’ve been pre-qualified in the past, you should contact your lender to find out if you meet their new, more stringent standards.

Is your income stable?

If there’s a good chance you could lose your job, you may be better off waiting to buy a home. The exception would be if you’re planning to downsize. Moving to a less expensive home could allow you to tap into your home equity or cut down on your monthly expenses.

WHEN YOU’RE READY TO MOVE—WE’RE READY TO HELP

While uncertain market conditions may give pause to some buyers and sellers, they can actually present an opportunity for those who are willing, able, and motivated to make a move.

Your average spring season would be flooded with real estate activity. But right now, only motivated players are out in the market. That means that if you’re looking to buy, you’re in a better position to negotiate a great price. And today’s record-low mortgage rates could give a big boost to your purchasing power. In fact, if you’ve been priced out of the market before, this may be the perfect time to look.

If you’re hoping to sell this year, you’ll have fewer listings to compete against in your neighborhood and price range. But you’ll want to act quickly. Economists expect a surge of eager buyers to enter the market in July—so you should start prepping your home now. And keep in mind, a second wave of coronavirus cases could be coming in this winter. Ask yourself how you will feel if you have to face another lockdown in your current home.

Let’s schedule a free virtual consultation to discuss your individual needs and circumstances. We can help you assess your options and create a plan that makes you feel both comfortable and confident during these unprecedented times.

 

The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult a financial professional for advice regarding your individual needs.

Sources:

  1. Forbes – https://www.forbes.com/sites/ellenparis/2020/05/08/latest-housing-market-update-from-realtorcom/#20bf7829113e
  2. HousingWire –
    https://www.housingwire.com/articles/realtor-com-housing-market-will-bounce-back-this-year-but-the-rebound-will-be-short-lived/
  3. Curbed –
    https://www.curbed.com/2019/1/10/18139601/recession-impact-housing-market-interest-rates
  4. com –
    https://www.realtor.com/research/weekly-housing-trends-view-data-week-may-9-2020/
  5. com –
    https://money.com/coronavirus-real-estate-home-prices/
  6. Fannie Mae –
    https://www.fanniemae.com/resources/file/research/emma/pdf/Housing_Forecast_051320.pdf
  7. HousingWire –
    https://www.housingwire.com/articles/pending-home-sales-tumble-on-covid-19-shock/
  8. HousingWire –
    https://www.housingwire.com/articles/zillow-predicts-small-home-price-drop-through-rest-of-2020/
  9. Federal Reserve Bank of St. Louis –
    https://fred.stlouisfed.org/series/CSUSHPINSA
  10. Consumer Financial Protection Bureau –
    https://www.consumerfinance.gov/coronavirus/cares-act-mortgage-forbearance-what-you-need-know/
  11. Bankrate –
    https://www.bankrate.com/mortgages/federal-reserve-and-mortgage-rates
  12. National Association of Realtors –
    https://www.nar.realtor/sites/default/files/documents/2020-05-11-nar-flash-survey-economic-pulse-05-14-2020.pdf
  13. Forbes –
    https://www.forbes.com/sites/alyyale/2020/04/17/buying-a-home-during-the-pandemic-dont-expect-your-everyday-home-purchase/#fadad3d33b0c
  14. Washington Post –
    https://www.washingtonpost.com/health/2020/04/21/coronavirus-secondwave-cdcdirector/

 

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Moving to Palm Springs – 6 Steps to Make Your Move Easier and Smoother!

Moving to Palms Springs - 6 Tips to make your move to Palm Springs Easier.

Moving to Palm Springs California – 6 Steps to Make Your Move Easier! Thinking of Moving to Palm Springs?

We’ve helped lots of people move here and have suggestions to make your move to Palm Springs as easy and stress free as possible.

We want to make the Moving to Palm Springs and Buying in Palm Springs the best experience it can be. Follow this 6 Step Plan to make your moving to Palm Springs as smooth as possible.

Subscribe to my channel here: 👇👇👇👇👇👇👇 ✅http://bit.ly/SubscribeToNealsYouTube…

📲 Please feel free to reach out Day/Nights/Weekends whenever you want!

We never stop working for you!!

Neal Nussbaum Call/Text Direct: 760-895-1868

Email: [email protected] CA DRE #01872204 HomeSmart Professionals DRE # 01912687

Website: https://www.nealsellshomes.com

Blog: https://www.nealsellshomes.com/catego…

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360 Virtual Tour 41702 Aventine Ct Palm Desert CA | Casablanca Palm Desert

360 Virtual Tour 41702 Aventine Ct Palm Desert CA

This beautifully upgraded 2BD/2BA condo is located in the exquisitely maintained Casablanca gated community in Palm Desert. The kitchen has all new soft-close cabinets, granite counters, and stainless steel appliances, plus a slider for outdoor access. The kitchen is open to the spacious living and dining area, with vaulted ceilings, a fireplace, and access to the private back patio. The large master suite with walk-in closet also has direct access to the back patio. The master bath has a double sink vanity and features both a spa tub and a separate walk-in shower. Your comfort is assured by new a/c (April 2019) and well-placed ceiling fans. Tile floors throughout provide for great visual flow and easy cleaning. The large two car garage provides laundry and a generous storage closet. Casablanca has four community pools, two sunken tennis courts, and four pickle ball courts. Centrally located in Palm Desert, there is easy access to shopping and restaurants, including the famous El Paseo.

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Thinking of Moving to Palm Springs? The Best Neighborhoods Palm Springs Has to Offer

Thinking of moving to Palm Springs? People are always talking about the many and desirable Palm Springs neighborhoods, but where are they? Let’s take a time out and find out where the best neighborhoods Palm Springs has to offer are!

My name is Neal Nussbaum and my colleague Stephen and I are going to take you through a tour of some of Palm Springs best neighborhoods. Palm Springs has many different areas with homes ranging from our well-known mid century architecture to more moderately priced homes all the way up to upscale luxury properties and the locations vary. We think of Palm Springs as three different areas, Palm Springs, north, Palm Springs, central and Palm Springs South. All three areas have different pluses and minuses, so let’s get started. 

Desert park estates: it’s a neighborhood made up of a diverse mix of housing styles, and building started here in the 1950’s and it continues today. This neighborhood also contains many mid century type homes and the home prices here range from the 350,000 price range all the way up to a million to a million and a half dollars.

Old Las Palmas, some of Palm Springs most stately homes and grand estates are here. Many of these were built by Hollywood movie producers and movie stars. One famous home here is Rancho Autry, former residents of America’s favorite singing cowboy gene Autry. Most of these homes are surrounded by lush landscaping with historical architectural splendor. Old Las Palmas is located between the San Jacinto mountain and downtown Palm Springs. Price ranges on these homes start a little over a million and go up as high as 20 million. 

Ruth Hardy park: this area is fairly close to the desert regional hospital complex. This area has a mix of small homes plus larger fence to States. And, of course the popular Ruth Hardy park is in the neighborhood as well. One home here was owned by Lucille ball and Desi Arnaz. Homes in this neighborhood range from about 500,000 all the way up to between two to $3 million as senior Palm Springs. This is a 450 acre plan community, but the Jack Nicholas golf course and the asina lounge and grill. These are all newer, larger homes having been built in the past few years. Pacino homes are noted for their great blend of desert views and architectural styles. Most homes have their own pool and some have to see this. The scene is close to the Palm Springs airport but has little airport noise prices ranging from 600,000 up to about a million 0.2. 

Andres Hills is located in the South part of Palm Springs in the Indian canyons. These are some of the newest homes in the South Palm Springs area. It’s a quiet and peaceful area and many of the homes have spectacular mountain views. The prices range from around 800,000 all the way up to $8 million. Some of the condos, however, are less expensive. 

The Movie Colony, along with old Las Palmas, the Movie Colony was also named for all the movie stars, producers and directors that have owned and still own homes today in this neighborhood. Some of these homes and gated property state back to the 1930s. Frank Sinatra’s first Palm Springs home was called twin Palms. It was designed by desert architect E Stuart Williams. Homes here in the Palm Springs movie colony range from about 1 million up to 5 million.

The Historic Tennis Club: area hugging the mountains just West of downtown Palm Springs. This area is also a mix of many Palm Springs small boutique hotels and it’s great if you want to be close to downtown Palm Springs. 

Deepwell prime Palm Springs neighborhood in Palm Springs third most important celebrity neighborhood. It has some larger homes and many with lush landscaping and Palm trees. The home behind me was once owned by film and TV legend, Loretta young. Deepwell is close to fine dining and shopping and is almost Winfrey most of the time. Many of these homes have been recently upgraded over the last few years. Price ranges here from 500,000 up to about 2 million

Park Andreyes, Bella Monte, Monte Sereno – these are all newer, larger homes in new neighborhoods in South Palm Springs. These neighborhoods have a mix of full time and part time residents. Homes in these neighborhoods, but bugger trail range from 800,000 all the way up to three to $4 million. 

The warm sands neighborhood is located just East of downtown Palm Springs. This area is a diverse mix of architectural styles including homes and condos and also boutique small hotels. Most of the boutique hotels that were originally built still exist, although the names of tank. Prices range here from the mid five hundreds up to about 2 million. 

The Mesa is located South of downtown Palm Springs and it’s right up next to the mountains. It’s also a favorite area for celebrities and no two homes in the Mesa are exactly alike. It’s a great area that really overlooks all the Palm Springs. Sonny bono of Sonny and Cher fame used to live in a home here. Sonny was also the former mayor of Palm Springs and then later our local Congressman. These homes in the Mesa had great views and they range from $750,000 all the way up to $30 million.

Los Palmas is  located between old Las Palmas and the San Jacinto mountain. There are many homes in this neighborhood and many of these were built in the 1950s and 1960s and many are now being upgraded. Many of the homes in this neighborhood sell from about 500,000 all the way up to about $3 million.

Indian canyons is home to one a Palm Springs oldest and well known golf courses, the Indian tannins golf course. It’s also near the smoke tree stables and is the gateway to the Indian canyons on the Southeast side of Palm Springs. Many of these homes have been recently renovated and are contemporary and design ranging from about 700,000 up to about 3 million. 

The racket club, known as the racket club, is actually the North gateway to Palm Springs. It runs very close to the old pony expressway into Palm Springs. This historic neighborhood takes its name from the racquet club hotel and resort, which was founded by Charles Farrell and the actor Ralph Bellamy. This home has a wide variety of architectural styles and the prices range from around 400,000 all the way up to $3 million. 

Chino Canyon and little Tuscany is West of the racket club and fairly close to the Palm Springs aerial tramway. It’s a mixture of large homes and different architectural styles. Many of these homes have large boulders and they’re incorporated into the landscape. The King of rock and roll, Elvis Presley loved Palm Springs and Palm Springs loved Elvis and incidentally, Elvis bought this home from Dick McDonald, one of the brothers that founded the McDonald’s hamburger chain. Homes here in Chino Canyon and little Tuscany ranged from about 500,000 all the way up to about $3 million.

So, there you have it, a brief tour of some of Palm Springs best neighborhoods. If you’d like more information about these and any other Palm Springs neighborhoods, be sure to let us know. Both of us can help you with that information. 

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Palm Springs Luxury Home Tour | Parc Andreas Palm Springs Neighborhood Tour

Palm Springs Luxury Home Tour Parc Andreas Neighborhood

Palm Springs Luxury Home Tour Parc Andreas Neighborhood | Living In Palm Springs CA
Want to see the Palm Springs Luxury homes in the Parc Andreas Neighborhood?
This video tours several homes in Parc Andreas and will also give you information about the neighborhood. Parc Andreas is a gated community in South Palm Springs. Most of the homes are behind gates, however a few of the homes are located on Bogart Trail and not gated. Most of the 144 homes in this highly desirable neighborhood were built in the 1980’s on large lots. Parc Andreas has both full time and part time residents.