By Craig Michaels
While COVID-19 has devastated many businesses and individuals, real estate in the Coachella Valley has been the silver lining in the pandemic cloud. Many professionals have realized they can work remotely from beautiful cites like Palm Springs instead of making the daily commute to the office. The pandemic has accelerated the influx of transplants from big cities like L.A., San Francisco and Seattle who are snapping up real estate changing the demographics of what was once a retiree community. Palm Springs has also been an attractive location for real estate investing. Although the population is small, there are many renters, pushing up rental demand for traditional rental investment properties.
According to Freddie Mac, the government-backed mortgage brokerage, interest rates on a 30-year fixed mortgage recently fell to 2.86% —the lowest number in nearly 50 years. While this is great news for buyers, they may be challenged to find their dream home with record low inventory. On November 1, there were only 2,014 units for sale in the Coachella Valley that is about half of what we have in a normal market, but we know 2020 is anything but normal. This high demand for homes combined with record low inventory and interest rates has helped push home values up. Currently homes in Palm Springs are selling for 99.56 % of list price which is another indication of the high demand.
Many neighborhoods once shunned by buyers are now experiencing a surge in activity. When I am working with buyers in Palm Springs they generally like to start their search in the southern part of the city due to its proximity to downtown and its closer to the mountain which means it’s less windy. We have seen buyers purchasing more homes in the subdivisions located in the central and north side of the city discovering the great values with the same quality of life. Neighborhoods such as Desert Park Estates, Racquet Club East and Victoria Park/Vista Norte have all experienced a large increase in home sales.
One of the hottest neighborhoods with buyers recently is Victoria Park/Vista Norte. Most of the homes around Victoria Park are ranch or contemporary style single-family homes built between 1965 and 2002. These homes, many of which sit on Indian Lease Land are suited for indoor/outdoor living with large expanses of glass walls lining the living room and views of swimming pools and nearby mountains.
Here is the latest hot home to hit the MLS in Victoria Park/Vista Norte. Welcome to a slice of “Palm Springs Paradise” at 1173 E Via Escuela. The home built in 1978 has had over $200K in upgrades. It includes 3 bedrooms (one currently being used as office) 2 bathrooms and a total of 2,000 sq. ft. The south facing backyard enjoys a breath taking, unobstructed view of Mt. San Jacinto. It has a gated courtyard surrounded by 110 Ficus trees mixed with Sago Palms and fruit trees for complete privacy. Other upgrades include newer HVAC and energy efficient Master Evaporative Swamp Cooler and additional Mini Split AC. It also boasts updated kitchen and baths with a sparkling Pebble Tec pool (salt water ready.) The back yard also includes an above ground spa highlighted by custom flagstone decking and a beautiful outdoor shower. Enjoy the view while you entertain guest in the amazing Cabana w/ 50′ TV, rotisserie BBQ, dishwasher, fridge, sink and ice maker.
This home was built for entertaining and would make a perfect vacation rental or primary residence. Grand piano and other furnishings are available outside of escrow. The list price for this home is $775K and has a lease until 2042 with an option to extend to 2067.
If you would like more information about this beautiful home send me an email at craig@realestatepalmsprings.com or call me at (760) 880-3848. Rental projections available.
Written By: Craig Michaels
Better Homes and Gardens / Leaskou Partners Inc.
