The Price of Desert Homes Rising In Coachella Valley

Southern California homes are starting to rise across the region. While some areas aren’t getting as high as others, some pockets are getting a lot of attention. One such location is the Coachella Valley, which is seeing a major increase in demand. In fact, in recent months, the area has seen an increase in median price of 13%. Analysts are seeing higher demand for homes, with a median price point of $345,000, up 13%. The available homes for sale may have dropped, but demand is rising, and values are also rising.

California Housing Prices Rising

Real Estate in the Coachella ValleyIt should be noted that California as a whole has seen an increase in median home pricing. You’ll find that the average price point for California is around $536,750 and has been rising steadily around 5% annually. Even with such a high price point, you’ll find that the Coachella Valley is lower than the rest of the region. The desert areas of California are lower cost, in high demand, and yet are the most affordable. In fact, one zip code in the desert is touted as the most affordable at only $123 per square foot (92240).

A Buyer’s Market in the Coachella Valley

Families looking to purchase a home today may want to look into purchasing homes in the desert areas of Riverside County, such as Desert Hot Springs and Indio, as the prices are going to continue to rise.

Looking back at overall home sales from the first and second quarter of 2017, new construction sales are down, and yet prices are rising. Median prices are going to continue to rise, as more and more people outside the Coachella Valley, especially in Los Angeles and Orange County seek out other areas to purchase a home. Buyers on the fence, not sure about purchasing a new home will no doubt see prices rising across the region, as indicated by the Coachella Valley real estate numbers that are continuing to jump in 2017.

Overall, buying a home can be a great thing. If you’re interested in Southern California real estate, the affordability ratio is going to change in the coming months, and year. It’s already rising in areas that were traditionally affordable, and will only rise as more people are priced out of Los Angeles, Orange County, and some parts of San Bernardino County. If you’re going to invest, it’s time to look now, as the 13% increase that has come through 2017 may very well only be a sign of things to come.

If you are considering  moving to the Coachella Valley or surrounding areas, here is an article that may help you make your decision.

Selling to an Investor

You should not consider selling to an investor in San Bernardino if your house is in great shape, unless you need to sell quickly. If your house is in good shape and you don’t need to sell quickly, listing it or selling it yourself would be a better idea.

We Buy Houses in San BernadinoShould I sell my house to an investor? Often we think of individual buyers or families as the typical buyers for houses. This has changed rapidly over the last few years and investors, or companies that buy houses are now making a large portion of the purchases of single family houses. Knowing if selling to an investor is key to making the right decision, as you shouldn’t always do so. In fact, sometimes selling to an investor may net you less money from the sale, other times it’s the best possible decision to make. Here’s how to tell if selling to an investor is the right decision for your situation.

Why you May Want to Sell to an Investor in San Bernardino

  • Often times sellers do not have to wait for conventional financing. Financing often delays the process of closing, and can significantly increase the time spent in escrow. Investors most often purchase using cash, meaning they can close quickly, or on the date of your choice.
  • Investors typically do not care about the condition of the property. Investors often times are not planning on living in the house, so condition is usually never an issue.   This can be very helpful if your property cannot qualify for financing.
  • Investors are typically flexible on the terms of an agreement, where a typical buyer might not be. For example, closing date, condition, moving arraignments, etc… Most investors also do not care if you choose to leave items at the house.

Why You May Not Want to Sell to An Investor

  • Make sure you do your research on the company or individual who is buying the house. Make sure they have some testimonials, or ask for a list of properties recently bought. Also, ask for referrals. Usually a real estate agent would do this work for you, but if you’re selling to an investor without a realtor doing a little homework upfront can go a long way.
  • Most investors do not pay full market value for the house. This doesn’t necessarily mean it’s a bad deal. If the house is in bad shape you can end up saving money on realtor fees, escrow fees, closing costs, repair costs, and holding costs like mortgage, taxes and interest. Just make sure you have a decent understanding of the property value in its “as-is” condition. Also, make sure you understand that an investor needs to make a profit, while a regular home buyer does not.