Greener Fairways In Coachella Valley’s Future!

What does a $20M pledge for a new medical school, the opening of a privately-funded law school, and a new four-year undergraduate degree program all have in common?

Answer: The Coachella Valley – All of these bright new developments are occurring NOW within the Coachella Valley!

The Coachella Valley can also boast:

  • Two new private homebuilders have entered the sub-market;
  • Several public homebuilders have closed on multiple finished lot opportunities; and
  • A 25-year real estate veteran backed by “New York money” has  closed on and currently entitling a 7,800 unit community

Home Sales Activity

New home sales: Toll Brothers experienced five sales at its new Alta project, located in South Palm Springs, within the first month of its opening!  By selling homes with a price point range from the mid-$700,000’s to the mid-$800,000’s, Toll Brothers is demonstrating how the high-end home market is returning to the Coachella Valley.

Home Resales:  According to MarketWatch, resale home prices have risen 13% since September 2011. For the first time in years, resale inventory is below 4,000 homes and number of months supply is under four months. Last year in April, over 5,700 homes were on the market (approximately 5.7 months of inventory). While prices are still low, both sales pricing and absorption are heading in the right direction!

Noteworthy Permit Activity

The City of Rancho Mirage has issued more new home permits so far this year than all new home permits issued in the City in 2010 and 2011 combined!

In case you missed it:

Stone James led a panel discussion on land in April at the Desert Valleys Building Association’s economic update, “Cut to the Chase for 2012: Our Economic Future.”  The topics and insight generated from the panel discussion are well-summarized and quoted in an article by Mike Perrault at The Desert Sun (via MyDesert.com). Read the article to see what Stone and his fellow real estate experts had to say: Panel: Housing the Best Bet for New Growth.

Source: Stone James, Marketing Consultant, (760) 219-7227

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CLEAR! We have a pulse in the Coachella Valley!

The Coachella Valley, once known as the “last to arrive and the first to leave” any housing market ‘party,’ is alive and kicking again with significant investment and development from homebuilders and investors.

Toll Brothers, in its first acquisition since Stone Creek Ranch in 2005, recently purchased two partially built projects which are now going vertical! These projects are located in Palm Springs and Rancho Mirage.

Another public builder closed on some well-located lots in North Palm Desert.

Two private builders, Far West Industries and Alta Verde Group, are joining the ranks of top builders within the Coachella Valley.  The folks at Far West have started construction on Luminaire in Palm Springs and have also picked up other well located assets recently.  Beverly Hills-based Alta Verde Group is in the process of going vertical on lots within Escena in Palm Springs in addition to a partially built project in La Quinta.

Local Coachella Valley builders are also showing their resilience and dedication… Family Development is working through sales at the beautiful Villa Portofino active adult project in Palm Desert.

Investors who acknowledge the Coachella Valley as one of the top retirement destinations nationally are taking advantage of low land prices, and are scooping up some terrific residential land opportunities.

Quick demographic fact: The Coachella Valley is one of the fastest-growing areas in the U.S. due in part to its location in Riverside County, and also to real estate booms in the 1970s to 1990s. State projections estimate that the Coachella Valley’s population will pass 700,000 by the year 2020, and one million by 2035. Demographers believe the total population already surpassed the 500,000 mark.  This number does not include the additional 100,000 temporary seasonal residents known as “snowbirds” who arrive to stay during the winter months (from the end of October to the end of April).  Source: Riverside County Projects 2006 and Land Advisors Research

Source: Stone James, Marketing Consultant, (760) 219-7227