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
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 .
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.
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 â€œThe Bottom has been reached!â€
The BOTTOM will not be accompanied by an article in the Wall Street Journal or New York Times, announcing â€œThe Bottom happened yesterday at 4:30â€
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! (Iâ€™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; â€œTo 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.â€
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 investmentâ€¦.
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 donâ€™t have to lock your doors at night, and your schools are the best in the State, for a good price? You choose.