Crossing Their Fingers In Palm Springs
The various media of California are picking through the Data Quick numbers for clues about their local markets. The Desert Sun thinks a slowdown might prevent a 'collapse'. "There are several signs of what observers contend is a healthy cooling down."
"The (Coachella Valley) inventory of unsold resale homes is now around 3,330 - more than twice the level seen a year ago. The total 1,432 properties sold in April marked an uptick from March's 1,385 and was the highest sales count so far in 2005. But it was a drop of 16.7 percent from April 2004, when a record 1,720 properties were sold."
Here is an interesting stat, "(prices for) new-construction homes dropped 8.9 percent to $345,000."
Speculation is evident. "A real estate agent in Indio said a large proportion of buyers are still coming from coastal areas, where they are using sales proceeds from much more expensive properties to purchase homes in the valley. That is creating an affordability crunch for the lower-income east valley buyers."