Media Releases

RELEASE DATE:
January 2, 2007

CONTACT:
Greg Berkemer
760) 346-5637
(Media Only) John Hussar
PRNewsWorks (760) 567-8073

PALM DESERT (Calif.) - The median price of a single-family home in the Coachella Valley and high desert dipped just 2.1 percent in November, although sales dropped nearly 35 percent compared to November 2005, the California Desert Association of REALTORS® reported today. Home sales in the greater Coachella Valley are traditionally slower during the Thanksgiving, Christmas and holiday season even though the price drop reflects the cyclical nature of the housing market.

"For local buyers, while prices edged up slightly over last month, they will find they will pay a little less for the same house than they would have a year ago," said Greg Berkemer, CDAR executive vice president. "In those areas with the greatest appreciation or with certain sellers that must sell, the discounts from a year ago may be considerably greater."

The median price of a home in the greater Coachella Valley in November was $369,900, 2.1 percent lower than November 2005, but 8.5 percent higher than October 2006. The median price includes sales in Yucca Valley and 29 Palms, which lowers the overall median price by about $50,000.

Although prices seem to stabilize the pace of sales and as the up-tick in inventory continues, Berkemer said sellers should consider proper staging (making your house look attractive) and an aggressive marketing plan with costs shared by the seller and the REALTOR®.

"As we move into the desert's traditional 'high season' of January through March the best time to act may be right now," Berkemer said.

Statewide, the median price for an existing home in November was $555,290 compared to $547,870 in November 2005, a 1.4 percent increase.

"There is a mixed picture across the state, with more regions reporting year-to-year declines than increases at this point," said California Association of REALTORS® Vice President and Chief Economist Leslie Appleton-Young. "We've seen three or more months of year-to-year price declines in areas where there was a lot of homebuilding activity and in those areas that are popular for second-home purchases."

David Lereah, chief economist for the National Association of REALTORS®, said the good news for buyers, especially first-time buyers, is that that they will have a window opportunity thanks to the combined benefits of seller flexibility and an unexpected drop in mortgage interest rates. "These conditions will persist in many areas until early spring when inventory supplies are likely to become more balanced," he said.

The California Desert Association of REALTORS®, The Voice for Real Estate® for the Coachella Valley, represents more than 4,000 estate professionals from Palm Springs to Coachella.

For more information, please call (760) 346-5637 or visit online at www.CalDesertRealtors.com