NEWS
Contact:
Russell T. Valone II
619-233-3781 x15
FOR IMMEDIATE RELEASE
New home ales are once again on the upswing in Eastern
Riverside County in the first quarter of 2006
PALM SPRINGS – Homebuyers in East Riverside County had a wider selection
of new homes, which contributed to an increase in sales in the first quarter of 2006,
according to Residential Trends.
The fact that 14 detached home projects came on line helped boost overall sales
to 1,046, 15 percent higher than the 909 sales recorded in the fourth quarter of
2005. Those 14 subdivisions added 2,206 units to the supply, and the newcomers
alone accounted for 193 of the quarterly total.
The detached market by itself increased 22 percent during the quarter – to 941
compared to 774 in the previous quarter.
No attached products opened, but the 10 existing complexes recorded 105 sales,
22 percent fewer than the 135 closing in the fourth quarter.
East Riverside County, the low desert country known as the Coachella Valley, is
starting the new year out on a positive note, but this year’s first quarter
performance was 22 percent below last year’s 1,331 first quarter, and 49 percent
under the 2,052 sales in the first quarter of 2004.
“After three straight record years, it may be that the desert market is due for a
cooling off period,” remarked Russell T. Valone II, president of MarketPointe
Realty Advisors, Southern California’s leading real estate database and consulting
organization and the publisher of Residential Trends.
Last year, 5,318 new homes were sold in the East Riverside market – third
highest ever. The second best year was 2003, with 5,768 sales. The all-time record
was set in 2004 – 5,851.
“However, this market has a reputation for volatility, so it’s not a good idea to
go out on a limb,” Valone continued.
The average price of all homes sold during the first quarter was $563,507, 16
percent higher than $486,840 in the fourth quarter.
However, more significant was the 16 percent jump in the average price of a
detached home to $582,641, compared to $500,197. The new figure is the highest
price ever recorded in the Coachella Valley.
“East Riverside is a unique market in that it is composed of two distinctly
different markets,” Valone explained. “At the top end, there are the resort
properties, usually in golf course settings, purchased either as full-time retirement
residences, or occupied only part of the year during the cooler months.
“Then there are the conventional new home projects comprising the mid-range
market, with less ostentatious homes and lower prices,” Valone continued.
“Some of the golf course homes now are being sold for over $1 million in the
desert, while more moderate prices in the $300,000s and $400,000s prevail in the
traditional projects.
“Prices of home away from the golf courses and resorts are more expensive than
they once were, but they are still considered moderate for Southern California,”
Valone noted.
Coachella Valley’s inventory of new homes for sale grew to an all-time high of
10,222 units in the first quarter. However, the bulk of the units in the stockpile –
8,799 or 85 percent are not yet built, leaving only 1,423 read to occupy once sold.
Residential Trends now conducts its audits of projects – both detached and
attached – of five or more units. Previously, the analysis covered projects of 10 or
more units.
The quarterly reports of new home sales published by Residential Trends do not
always correspond to calendar quarters. Such is the case with the first quarter 2006
survey for Coachella Valley-Eastern Riverside County.
In addition to Eastern Riverside County, Residential Trends quarterly reports
are compiled and published for western Riverside County, San Diego County,
Orange County, San Bernardino County. Greater Los Angeles County, Santa
Clarita-Antelope Valleys, and Ventura County.
Residential Trends is a division of MarketPointe Realty Advisors, Southern
California’s leading provider of real estate databases and real estate research and
consulting services. The corporate office is located in San Diego, with branches in
the Inland Empire, Riverside and Orange Counties. The phone number is 619-2333781
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