The Coachella Valley economy is still looking strong after five years of unprecedented growth. In terms of widely used economic “indicators” such as population, jobs, housing prices and bank deposits, the present economic picture is bright indeed.


This is the conclusion reached by experts at an economic forecast event held last week in Indian Wells - presented by the Coachella Valley Economic Partnership. The experts predict that our local economy should remain healthy for the foreseeable future, thanks in no small measure to a combination of baby-boomer demographics and geographic positioning in the Inland Empire, one of California's most prolific job-creating regions.


The chief challenge in sustaining and/or improving upon this optimistic picture is a need to create a more diversified industrial base – one that can provide higher-paying jobs, while at the same time protecting the region’s economy from the unpredictable ups and downs that are characteristic of tourism-focused economies.

It was reported this morning that Housing Starts (Builders report this number monthly) are up. This is the first time that the starts have increased in 3 months. Does this mean that the housing market is starting a turnaround? or is it just that builders are bullish?

Home sales in Southern California dropped for the 10th consecutive month in September, while home-price appreciation slowed to a snail's pace, a real estate information service reported Thursday.

That is the National Headline. But the real story remains that the Palm Springs Real Estate market is still outperforming the rest of Califronia. Although the Coachella Valley numbers are not out yet, Riverside country is showing an 8% increase in appreciation for September.

COACHELLA VALLEY HOME VALUES
CONTINUE TO BUCK NATIONAL TRENDS

Widely publicized “nationwide” declines in both numbers of home sales - as well as median home prices - have left many erstwhile home buyers and sellers wondering what to do lately. Should I act now, or wait for “better news”?

Well, the best answer to that pivotal question really depends on your particular situation. Smart answers can seldom be found by analyzing data averaged for the nation as a whole, which is exactly what is reflected in most reports by the national media.

Unfortunately, such reports seldom reflect the actual situation for any given local market. This is particularly true of the Coachella Valley which is by no means typical of the average US home market - or living environment - in many crucial ways.

After all, you wouldn't decide whether or not to play golf here on a bright February morning based solely on the national average predicted high temperature would you?

And so it is with the local real estate market. The Coachella Valley is a prime example of an area of that in some very critical ways bucks the “gloom and doom” national trends lately touted by the national media.

In fact, the latest figures available show that, despite a national average decline in median home values over the same period, Coachella Valley homes appreciated 8.1% between August 2005 and August 2006. This gain represents the strongest showing of any real estate market in the entire Southern California region.

It is true that in terms of number of units sold, Valley home sales this past August were substantially lower than they were during the same period last year. However, summer is traditionally the least active period of real estate transactions in the desert, and August the slowest month of that predictable summer slowdown.

Therefore, August is by no means the best” indicator” month on which to base predictions of home sales for the coming year. Rather, has Greg Berkemer, executive vice president of the California Desert Association of Realtors suggests, how the valley does in the fourth quarter of 2006 should be a good indicator of where the market is heading in 2007.

Potential home buyers therefore would do well to take a close look at the actual home market performance figures for specific areas in which they are interested. Real estate pros in the Coachella Valley have already noted an uptick in local home shopping activity with the arrival of the beginning of peak visitor season. Many home shoppers are coming from outside the valley, or are current valley owners looking to move up to bigger homes in developments like country clubs.

So, there is no valid reason to put off at least seriously exploring the possibility of buying or selling a Valley home right now. Consult with your realtor, and remain mindful that real estate is traditionally a long-term investment. Agents need to educate both buyers and sellers, and both groups need to be realistic.
Fortunately, here and now in the Coachella Valley, “realistic” does not equate with “pessimistic” when it comes to real estate transactions.

I am currently in NYC visiting a conference of top real estate agents from all over the country. we have sessions on team building, listing presentations, buyer presentations, business planning and even blogging! Weather is is warm and muggy with a few thunderstorms