Media Releases

Release Date
May 6, 2008

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Home Sales Up 16.5 Percent In March, Says
California Desert Association of REALTORS®

PALM DESERT (Calif.) - Home sales jumped 16.5 percent in March over February's total in the largest month over month increase since October 2007, the California Desert Association of REALTORS® reported today.

"Actually, we have seen six month of sales increases except for December, which is typically are slowest month in any market," said Greg Berkemer, executive director of the California Desert Association of REALTORS®.

"Typically this would be enough months of improving sales to point back to the bottom of the market - Sept. 2007 - when this upward trend line began," Berkemer said. "However, this housing shift is unique in its root causes, and will probably be unique in its movement towards normalcy as well."

March is traditionally high season for home sales in the Coachella Valley, which has been boosted by Canadian buyers because of the dollar value and the luxury home market over $1 million.

Existing home sales, however, were down 27.1 percent in March compared to March 2007, according to the Desert Area Multiple Listing Service. The median price of a home in March was $311,540, a seven percent decline from February.

Berkemer said the number of home loans that are forcing owners to sell remains the single largest influence in the market. "Clearly, upward sales numbers are in large part the result of home sales dominated by properties in foreclosure, offered as a short sale, (sold for less than the amount of the loan), or REO's - properties already foreclosed upon and now owned by the bank," he said. "The depth of this matter is also keeping inventory at high levels and home choices for buyers reasonably plentiful. Although total inventory is slowing headed downward.

"Markets heal themselves and this one certainly is doing that," Berkemer said.

The California Desert Association of REALTORS®, The Voice for Real Estate® for the Coachella Valley, represents more than 4,200 real estate professionals from Palm Springs to Coachella.

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