Existing Home Sales Up 41.6 Percent In July, Says California Desert Association of REALTORS

PALM DESERT, CA – September 9, 2008 – (RealEstateRama) — Coachella Valley existing home sales jumped significantly in July with a 41.6 percent increase over July 2007 sales, although the median price dropped homes declined 36.7 percent over July 2007, the California Desert Association of REALTORS® reported today.

“When sales rise faster than prices fall, it could indicate that buyers are taking advantage of this market window with urgency, and that window could be narrowing more quickly than earlier projections,” said Greg Berkemer, executive vice president of the California Desert Association of REALTORS®.

“In terms of sales, which have been increasing since the second quarter of this year, if you were waiting for the bottom of the market you may have missed it,” he said.

“The August inventory is the lowest since September 2006,” Berkemer said. By comparison, the January sales rate and inventory yielded 20.2 months of unsold inventory while the August sales and inventory stands at 12.7 months of unsold inventory.

Berkemer said desert buyers continue to take advantage of lower prices and reasonable interest rates, such that for July single family homes sold were on the market for a median of 97 days.

“So when is the best time to buy? The answer hasn’t changed. It’s five years ago. True, five years ago. It’s true today and will probably be true five years from now. The sales pace would seem to indicate that serious buyers agree,” he said.

The median price of an existing desert area home in July was $239,360, down 36.7 percent from $378,310 in July 2007.

According to the Desert Area Multiple Listing Service, the real estate industry standard for existing and some new home sales throughout the Coachella Valley, the typical median priced home for sale now is a three-bedroom, two-bath, 1,760 square-feet listed at $314,945 and has been on the market for 97 days.

Throughout California, existing home sales rose 43.4 percent in July compared to July 2007 although the median price fell 40.3 percent to $350,760, according to the California Association of REALTORS®, the statewide organization.

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

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