Number of escrows on rise in Palm Springs Valley

Increase shows 'we're inching in the right direction,' top Realtor says

Erica Solvig
The Desert Sun

Monthly sales may be down, but the number of escrows is slowly rising in the Coachella Valley.

With the exception of a slight dip during traditionally slow December, the upward trend started in September.

Unlike housing sales figures - which show what's been happening month to month - experts use escrow data to indicate what's coming in the market.

The numbers, released this week by the California Desert Association of Realtors, show January's pending sales still lag the escrow figures seen in early 2007.

Still, officials say the increasing number of pending sales means that other market indicators - mainly the closely watched sales tallies - also should start showing an upswing.

"It's going to be a while before these numbers all start to turn positive," said Greg Berkemer, executive vice president of the California Desert Association of Realtors.

"We're inching in the right direction."

January saw 549 pending sales, down about 7 percent from a year ago and up 11.4 percent from December, according to association figures.

February figures have yet to be released.

But if One Brokerage with 400 desert agents are any indication, the upward trend is continuing.

With a few days to go in February, their agents earlier this week reported 206 pending sales - versus the 150 seen in January - said regional vice president Ron Gerlich.

"Normally, around this time of the year, sales do start to increase," he said. "To have this many openings so far in February, this is the best month we've had in six or seven months.

"Its an indication. There are people out here buying."

Villain or Hero?

Greg Thomas and Gary Drake are realtors with Windermere Real Estate in the Coachella Valley representing sellers and buyers in the cities of Palm Springs, Palm Desert, Indian Wells, Rancho Mirage, Cathedral City, Indio and Desert Hot Springs.

I remember just two years ago being the good guy by finding buyers great homes and getting top price on properties for the sellers we represented. Gary and I worked with a handful of first time buyers back then and talked most of them out of the teaser loans they were being offered at that time, explaining what would happen if the market slowed down and prices dropped. Yes, we did lose some higher commissions by selling homes that our buyers could actually afford with a loan where the payments remained steady rather than jumping $600.00 a month or more in three years. Today we are heroes to those families and they will be our clients for life.

What I find interesting is that Realtors® were heroes a few years back when we were hustling to find homes to fit clients’ needs in a very low inventory market. Now the media paints a picture of greedy, misleading agents who sold people homes with crazy loans just to get higher commissions. I know there were some unscrupulous agents who did that, but, quite frankly, I am not sure if most of them have been able to survive this current market; I have a feeling they were in it for a quick buck.

To survive long-term in any business, my belief is to put the client first and be honest and you will make out in the long run and be able to sleep at night (it’s not rocket science).

Palm Springs area real estate is blessed in many ways since it is a vacation destination for people around the world during the season. We also have many baby boomers flocking here to retire and to enjoy the easy living the desert offers, not to mention the second home owners and full-time families who now live here year-round.

Gary Drake and I have had three escrows in January and we represented the sellers on all of these transactions. If homes are priced right and fairly they do sell. Two of the buyers were from Canada and the others were baby boomers who bought a home on the golf course for under $400,000 near Mission Lakes in the newer side of Desert Hot Springs.

I know I am one of those damn Realtors® who no one wants to listen to now compared to three years ago when I was a hero because everyone was making double-digit appreciation on their homes. There are some really great buys right now in the Coachella Valley prices are down. You see, now it’s your turn to take advantage of the greedy people who bought new homes as commodities, waiting to flip them and make a quick $75,000 or more. Some of the greedy ones are now in trouble and are either losing the property they never lived in or selling them at hugely discounted prices!

So in the long run who wins?

Just make sure you get all the facts that you possibly can and have a true professional help you navigate the market they specialize in. Chances are that you will be calling that person a hero in a few years because it is my opinion that at some of the prices I see now, you can’t lose in the long run.

Greg Thomas
The Thomas and Drake Group
www.ThomasAndDrake.com