As the world begins to come out of hibernation, many things will look and feel different compared to the start of 2020. There has also been a lot of conversation about similarities, namely between today and the financial crisis over a decade ago. While the real estate industry is once again at the eye of the storm, it seems to be taking on a very different role. In fact, real estate has been a key grounding factor, given that most of us are staying, working, and playing at home.
One thing that hasn’t changed at SilverRock is that we are still pushing forward with our plans to start home construction in 2020:
- We are in “plan check” with the City of La Quinta and expect to have permits later this summer
- The City of La Quinta is under construction with their Event Venue and expect to have it ready by November
- We have started to accept reservations for Phase 1 of all Montage and Pendry branded residences
- The plan is to begin rough grading of the hotel and residence sites in the fall
- Construction of the model homes will begin by year end
National home buying data is showing encouraging numbers. While purchase volume last month was lower by over 35%, the most recent data has shown a resurgence. Now, home buying is only 1.5% lower than a year ago, mortgage applications have risen steadily over the past three weeks, and rates continue to drop. These are all positive factors for the economy and are completely different compared to what we saw from 2007 to 2009.
Locally, we are experiencing increased buyer interest despite the typical summer lull. Real estate data from the Coachella Valley has been surprisingly positive – especially when compared to our large feeder markets in Los Angeles, Orange County, San Francisco, and Seattle. To better understand the current local data, please see this blog post from one of the local valley brokers.
We are excited to see the shift that is occurring in the desert. More importantly, this psychological shift is being validated in the data – it’s not anecdotal or a gut feeling – and assuming that this migration pattern continues for the remainder of the year, the Coachella Valley appears to be in a good position. The success of real estate is based on two key factors – location and timing – and we know that SilverRock is in the unique position to take advantage of both.