Heidi From S…, Home Buyer in La Quinta, CA

Anyone care to speculate on expected appreciation/deprecation in the La Quinta area in the next year? Next 5 yrs? Still declining?

Asked by Heidi From Seattle, La Quinta, CA Sat Jul 23, 2011

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9
Hi Heidi,

Personally, I think the market is going to bounce along pretty close to where it's at right now, for probably the next 3-5 years. I think you will also see additional price reductions with some sellers depending on their situation. La Quinta will always maintain a certain attaction as an ideal vacation and snow bird destination due to it's beautiful winter weather and all the outdoor activities that one can enjoy here, however the market here is not immune to the overall economic difficulties the country is facing. If it were me, for my planning purposes, I would look first and foremost for the ideal vacation home (as there are a LOT to choose from) and take your time looking until you find one the really appeals to you and is priced right, etc. However... if you do find one you really like, then you may want to jump on it because those that are priced well, in good condition and nice upgrades, good orientation with great views, etc., are getting snatched up. While those that are not, continue to languish until prices come down to where they are attractive to buyers looking mainly at price. Secondly, I would not count on a lot of rental income as there are a lot of available rentals right now. You may get the occasional renter, particularly during the golf and tennis tournaments, holiday seasons, music festivals, etc., but probably not enought to justify buying a second home mainly for rental income purposes. I would plan on very little if any price appreciation for next 5 years, however.... it depends on how much you pay. Some deals right now, I think, do offer some pretty good upside price appreciation however for the most part, I would plan on very little appreciation for next 5 years. Hope this is helpoful...

Larry Hansen, CPA and Broker / Owner
Calif Desert Realty
760-668-2486
1 vote Thank Flag Link Sat Jul 23, 2011
It's definitely softer now than last year at this time. the houses are sitting on the market longer and yet the cash/investor/buyers are not fining anything they can afford to buy and flip. Only the whales with the clout to hold on longer are making a go of it in terms of investment. My PERSONAL opinion is that we are going to stabilize and appreciate slowly over the next 3-5 years. Just a feeling.
0 votes Thank Flag Link Tue Feb 25, 2014
Hello Heidi, One year since your post with record low rates and home prices, the time to buy is now. Prices are starting to increase little by little but increasing so the time is right.
Were you approved to buy yet? I specialize in Under 640 Fico Score Loans. If you have a minimum 580 fico score, you may qualify for CHF Accss half percent down program. For those that have scores betwen 500-579, will need 10% down. I offer credit repair at no cost to raise your fico scores too.

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These are between $110k with $550 dn and $805PITI and up to $200k with $1,000 dn and $1,464PITI. Here is what is available in La Quinta up to 200k.
Click the following URL to see the Listings:

http://www.mrmlsmatrix.com/DE.asp?k=1164647X4KQN&p=DE-11…

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Sheryl Arndt, Broker – Loan Officer
DRE# 01440252
NMLS# 297251
760-486-4225
0 votes Thank Flag Link Sun Sep 23, 2012
Prices are starting to increase for sure. It's still not a great time for flippers, although there are still some flippers who are doing just OK. But it is a good time to buy properties that you can rent out. I have helped some Canadians buy investment properties (all cash deals) and then helped them get them rented out right away. They are very happy with their investments at this time. I do NOT think that the market is declining and in fact it is gaining slightly because of the low inventory. However, nothing goes up continually in a straight line. It goes up, then down, then up and then down and so on. All reports now are very optimistic and sales AND even prices are going UP. So, especially with interest rates low now still, it seems to me to really, TRULY, be an ideal time to BUY. Check out my website at wendysdesertrealestate.com
0 votes Thank Flag Link Sat Sep 22, 2012
My cell phone (and I AM local and LIVE in La Quinta) is 760-587-6009. I am a full-time realtor here in La Quinta!
Flag Sat Sep 22, 2012
Hi Heidi,

I agree with the other forum members, here is my assessment - level prices for the next 2-5 years - there was an anomalous spike in prices here in the last 5-7 years ago - now is a great time to buy, in a market with equilibrium - I will be here to help buyers .

Soila Thompson
949.545.1177
0 votes Thank Flag Link Tue Aug 21, 2012
Hi Heidi,
In my opinion we have hit the bottom as far as prices go. In certain areas like Legacy Villas the prices have actually gone up. There will still be a steady flow of Foreclosure properties and short sales that will continue to drive the market. We are seeing investors buying rental properties as the rate of the return on money is great. Also companies are buying up properties at Trustee Sale and flipping. All signs that things are only going to get better. We are fortunate in La Quinta as we draw buyers from all over the world. Prices tend to fall fast but raise up slow. Interest rates are still historically low which helps out tremendously.
0 votes Thank Flag Link Wed Jul 27, 2011
Heidi,
I can speculate.
My opinion is,
Level for the next year through August 2012
Then 5-7% appreciation over the next 4 years.

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
harold@banningcaliforniahomes.com
http://www.banningcaliforniahomes.com
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Tue Jul 26, 2011
I am stepping out and predicting 5% per year for the next four years. No boom! No bust!

BOTTOM OF THE MARKET
There has been a lot of speculation and negativity about when the BOTTOM will occur.
The BOTTOM will not be heralded by a Town Crier, walking around, shouting “The Bottom has been reached!”
The BOTTOM will not be accompanied by an article in the Wall Street Journal or New York Times, announcing “The Bottom happened yesterday at 4:30”
The BOTTOM will be completely different for you, than it will be for everyone else.
The reason for this is that you will not be buying the MARKET; you will be buying one house!
There is a fixation among some Buyers, that they be able to tell everyone that they got the absolute BEST price in the world! (I’m sure you know people like this.) This obsessiveness will surely not be rewarded, because there will always be someone who got a better deal.

There is a very old saying that; “To have a good sale, the Buyer had to have been willing to pay more, and the Seller had to have been willing to take less.”

The truth is, when you buy that house, any house, you are establishing the BOTTOM of the MARKET for THAT house. The clock starts on that investment. And considering that Real Estate is a long-term investment; if you can look back in five years and see that you made a good investment….

This whole controversy must take into consideration what you are buying:
If the object-of-your-affection is a Home for your family, then your priorities are skewed if you are obsessing on the Bottom-of-the-market: You are first, last and always buying a HOME for your family; complete with Security, a good neighborhood, good schools, 3 bedrooms, 1647 square feet, a wooded backyard, a 2 car garage, etc.
Sure you want to make a good buy, but that price should not be on the top of your list: Would you be happier in a crummy, crime-ridden neighborhood, with a house that is falling down, BUT, you made a great deal! Or, would your rather have the best house on the block, where you don’t have to lock your doors at night, and your schools are the best in the State, for a good price? You choose.
0 votes Thank Flag Link Sat Jul 23, 2011
Larry pretty much hit it on the head. Historically the Coachella Valley in General has been the last to drop and one of the first to recover during recessionary periods. We have a lot of residents, full and part-time with discretionary income and aren't always as affected as the lower and middle class. We have a lot of issues in this country in general that will need to be worked out before we see any real recovery. I wish I was smart enough to know how long that will take and my crystal ball is broken, so I hate to hazard a true guess. I can only go by history that Real Estate has cycled up-and-down, with a rise after each drop over the past 100 years and will probably continue to do so.
0 votes Thank Flag Link Sat Jul 23, 2011
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