Palm springs Real estate bubble

[Boat 405]

Anyone watching this???

Prices of homes are for sale for 1/2 of what they sold for less than a year ago… whoa

Example below

2190 N Deborah Rd, Palm Springs, CA 92262 | MLS #OC23226635 | Zillow

This 1242 square feet Single Family home has 3 bedrooms and 3 bathrooms. It is located at 2190 N Deborah Rd, Palm Springs, CA.

www.zillow.com

 

[NicPaus]

It was for sale 2 months after purchase for a 200k loss? Then gets a new pool and upgrades while they keep re listing it for less. Something doesn't ad up.

Not to mention when was a average palm springs house ever worth over 1k a sq ft? That's what the houses are going for in Redondo Beach that I have looking at for a client.

 

[Dalton]

Whoever sold it in 2023 made off like a bandit, the person that sold in 2021 didn't do bad either. Talk about left holding the bag.

Looks like an 80's cookie cutter house they tried to fix up like a mid-century modern. Add a butterfly roof it might get there.......

 

[Orange Juice]

No one mentioned it's right off the end of Palms Spring International Airport.

I haven't seen a price break in northeast Phoenix so far this year. I'm showing I could list my home for rent currently at $5200-7000 a month, (6-month minimum) furnished. But it's snowbird time, and everyone wants to play in Phoenix in the winter. It's the new Dubai in the desert.

 

[Boat 405]

They changed the rules of vrbo to restrict them. Now all the vrbo homes are going for cheap essentially crashing the home market there

 

[badgas]

People are dumb.

We all watched buyers come in and buy a houses for " LIST " price or over without getting appraisals or running any numbers they just watched a tiktok video about joining the STR craze jumped in.

It sold for $611K in 2021 Then in 2023 for $1.3 million ? Did that not give the buyer any pause ?

Long term rental, short term rental, personal residence all have the same debt problem in the end. Don't buy a leveraged house you can afford or you will be reselling it.

 

[SOCALCRICKETT]

They changed the rules of vrbo to restrict them. Now all the vrbo homes are going for cheap essentially crashing the home market there

This^


My buddy sold off 3 of his LA Quinta homes last year because of the short term rental laws. He did alright on 2 homes and got spanked on one

 

[Singleton]

They changed the rules of vrbo to restrict them. Now all the vrbo homes are going for cheap essentially crashing the home market there

That was changed a few years ago.
My mom sold her place just east of the airport in 21 for over double what they purchased it for.
They were one of only a few townhome complexes that still allowed STR.

 

[boatpi]

This is what happens when you eliminate short-term rentals practically overnight. I wonder what the property owners in the rest of the city you’re thinking now that all the regular home prices went into the shutter.

 

[COCA COLA COWBOY]

Airbnb at its finest...It's happening in other areas too, but this property is worst case scenario. I know many are starting to sell off their homes in Big Bear too.

 

[Flying_Lavey]

As long as corporations aren't all buying them up, sounds like a good thing.

Those corporate property management companies (not sure if they own the houses or just manage the rentals) require CRAZY stats to sign their leases. Like a 700+ credit score, $12k+ move-in costs and 3.5x monthly gross income for a house that has a $4,000+/month rent. If you had all that, why not buy?

 

[jeteater1]

No one mentioned it's right off the end of Palms Spring International Airport.

I haven't seen a price break in northeast Phoenix so far this year. I'm showing I could list my home for rent currently at $5200-7000 a month, (6-month minimum) furnished. But it's snowbird time, and everyone wants to play in Phoenix in the winter. It's the new Dubai in the desert.

And Aqua Caliente is building a new concourse so they can support more flights. I used to love flying out of there. Were 20 minutes away on the 74. Now no parking. Or if there is it's $20 a day to park in the sun.

 

[stillhustlin]

Airbnb at its finest...It's happening in other areas too, but this property is worst case scenario. I know many are starting to sell off their homes in Big Bear too.

Big Bear is another market that is likely going to be hit harder. I think once the honey moon period wears off for people and they realize the burden of owning something up there the market will flood.

If I remember correctly Palm Springs has had a high spec count as of recent years.

 

[Backlash]

Should we hold on to our hats or am I over exaggerating?

 

[JDKRXW]

As long as corporations aren't all buying them up, sounds like a good thing.

I don't see how these corps are any different than airbnb. They're just localized versions of exactly the same thing with longer rental terms.

These corps are just skirting airbnb rules that are coming into place in lots of areas.

 

[Bajastu]

The VRBO and Air B&B's were getting a little out of hand. I know lots of cities are starting to crack down on the STR's. Even where I live (Canyon Lake, CA) it's illegal for STR's but I still see a few houses that fly under the radar and there are some different cars parked there every other weekend. I've thought about a STR on my Parker house but in the end, it’s not worth it. If you can’t make the payment, you shouldn’t own a second house. Relying on a STR strategy to own a house is a total gamble I’m not willing to take. I’ll make money and invest in other avenues to add to my portfolio.

 

[attitude]

As long as corporations aren't all buying them up, sounds like a good thing.

Those corporate property management companies (not sure if they own the houses or just manage the rentals) require CRAZY stats to sign their leases. Like a 700+ credit score, $12k+ move-in costs and 3.5x monthly gross income for a house that has a $4,000+/month rent. If you had all that, why not buy?

If where you live is like where I live, a house that rents for 4k a month would have an 8k monthly payment for a 1st time buyer.

 

[shintoooo]

Only places that have a bustling economy are relatively safe from drastic drop in prices. People start to lose their jobs and the first places that are going to start dropping will be second/vacation homes. People are starting to lose jobs. Credit card limits are being maxed out.

 

[checkrdpast]

Our place we bought 2 years ago is even so far. Went up and down a few K . We're in Suncity Palm desert

 

[BHC Vic]

If where you live is like where I live, a house that rents for 4k a month would have an 8k monthly payment for a 1st time buyer.

What are half acre houses in norco renting for?

 

[attitude]

What are half acre houses in norco renting for?

The last one I saw posted was for $4200, but the stalls were occupied. I don’t think they will get $4200. $4k with horse property seems to be the norm for a nice home.

 

[samsah33]

I'm out here in Coachella Valley, and the cul-de-sac at the end of my street had about 4 of 12 houses as short term vacation rentals that were upgraded (e.g. converted a 5br to an 8br), and the neighbors weren't happy about those houses. They've all recently been sold to a halfway house company for recovering addicts, and that company is soliciting the remaining owners to purchase their houses.

Now the remaining residents are really not happy since there's less they can do about the parking on the street by all the workers and the sketchy people walking around as compared to when they were vacation rentals because these houses are sanctioned and supported by the state and the city has no jurisdiction over these houses at this point.

Be careful what you wish for. The cul-de-sac wanted no vacation rentals, so now they got it...! My fear now is that CA will start expanding subsidies to nonprofit companies who house illegal immigrants, and those nonprofits start scooping up the former vacation rentals... Sometimes the devil you know is better than the devil you don't.

 

[2Driver]

Fuck vrbo, air bnb and while your at it the single family houses that are allowed to become drug rehab and long term care facilities.

 

[stonehenge]

My grandparents always said you can pick your friends, but you you cant pick your neighbors.

Whenever I buy a property, for rental or otherwise, I do tons of homework/research/observations, etc... before I buy.

 

[RiverDave]

Fuck vrbo, air bnb and while your at it the single family houses that are allowed to become drug rehab and long term care facilities.

the rehab deals should have to have zoning or permits etc.. I don't understand how it's legal to put one of those in a neighborhood with no disclosure.. but the neighbors have to disclose now there is one in the neighborhood and it hurts their values.

RD

 

[Todd Mohr]

In Reno I was selling minivans to a company that had 12-15 sfr's used as half way houses for minor deliquent kids. He was making bank from these homes, it was all working out perfectly until he showed up at an audit in his Ferrari. It's crazy how much $$ can be made from these programs. I charged 3k over sticker for Nissan Quests, he could of cared less.

 

[hipcash]

What are half acre houses in norco renting for?

The one up the street from me is renting for 5,500.00 a month. In the hills

 

[2Driver]

the rehab deals should have to have zoning or permits etc.. I don't understand how it's legal to put one of those in a neighborhood with no disclosure.. but the neighbors have to disclose now there is one in the neighborhood and it hurts their values.

RD

My buddys house in LHC off Buena Vista had a long term care home across the street. Void of landscape a commercial dumpster in the front yard and it wasnt unusaul to be there and see a body came out.

Said before. first thing I did at Moonridge was kill STR. It probably was one of the best things we did.

 

[28Eliminator]

Overall home values are still doing ok. Even my house in La Quinta went up $3900 in value in the last 30 days.. at least according to Zillow. Definitely no 50% drop. Our homes at the project are pushing $1000 sq ft now.

The limiting of the STR's will undoubtedly have some effect on certain areas of the valley as mentioned above but I don't think it's time for widespread panic quite yet.

Housing Values Continue to Rise, Housing Market Gained $2.4T in Value Over Last Year

Data analysis for more than 90 million U.S. residential properties as of December 2023 by real estate company Redfin shows that although there's lackluster demand due to elevated mortgage rates and housing affordability challenges, home values still continue to rise. Redfin's analysis shows the...

www.probuilder.com

 

[attitude]

The one up the street from me is renting for 5,500.00 a month. In the hills

Everything in the hills is an easy $1.2+ million, plus the owners need to cover the 1% Melle-Roos tax.

 

[kurtis500]

the rehab deals should have to have zoning or permits etc.. I don't understand how it's legal to put one of those in a neighborhood with no disclosure.. but the neighbors have to disclose now there is one in the neighborhood and it hurts their values.

RD

right. There's usually a code on the books that only allows 1 rehab facility within a certain distance of another. I.E. quarter mile etc. Not sure how they got away with them in such close proximity

 

[Boatymcboatface]

Well this guy down the street is still optimistic.

https://www.zillow.com/homedetails/...ssage&utm_medium=referral&utm_source=txtshare

 

[Boat 405]

Well this guy down the street is still optimistic.

https://www.zillow.com/homedetails/...ssage&utm_medium=referral&utm_source=txtshare View attachment 1341349

Hopes and dreams

 

[bilz]

Throw ADUs into the "that's f'ed up" list.

 

[Dalton]

oof.....now in default, not sure there was any other outcome though.

 

[BingerFang]

$1.1mm unpaid balance…. Ooof!

 

[Mandelon]

Foreclosures are ticking up again.

 

[tobya666]

Interesting things are happening in Palm Springs, and they’re not exactly positive – home prices have dropped by as much as 50% compared to last year. I believe the changes in regulations for short-term rentals, like Airbnb or VRBO, have destabilized the market. In contrast, Aspen remains a more stable and attractive market. I’m speaking from personal experience, I’ve already invested in three properties here and made a solid profit. During the buying process, I had the help of Morghan Jabusch. If you’re interested, you can find more about him at bestrealestateagentaspen.com, where you’ll also discover great tips for buyers and sellers.

 

[TBulger]

Interesting things are happening in Palm Springs, and they’re not exactly positive – home prices have dropped by as much as 50% compared to last year. I believe the changes in regulations for short-term rentals, like Airbnb or VRBO, have destabilized the market. In contrast, Aspen remains a more stable and attractive market. I’m speaking from personal experience, I’ve already invested in three properties here and made a solid profit.

As in Aspen colorado?

 

[DarkHorseRacing]

Interesting things are happening in Palm Springs, and they’re not exactly positive – home prices have dropped by as much as 50% compared to last year. I believe the changes in regulations for short-term rentals, like Airbnb or VRBO, have destabilized the market. In contrast, Aspen remains a more stable and attractive market. I’m speaking from personal experience, I’ve already invested in three properties here and made a solid profit.

Aspen is a whole different ballgame. Completely different set of clientele and as a resort destination there really are no off months.

 

[stillhustlin]

Interesting things are happening in Palm Springs, and they’re not exactly positive – home prices have dropped by as much as 50% compared to last year. I believe the changes in regulations for short-term rentals, like Airbnb or VRBO, have destabilized the market. In contrast, Aspen remains a more stable and attractive market. I’m speaking from personal experience, I’ve already invested in three properties here and made a solid profit.

Are you buying long term rentals or flips?

 

[Mandelon]

Another factor out in the Palm Springs area is the Indian Land Leases are aging many places out of financing acceptance. The land there was split up like a giant checkerboard. Indians have every other square. City hall is on leased land. The leases were initially fairly long, but now many are under 30 years remaining, and financing is more difficult to obtain. Prices are dropping to reflect that and the uncertainty of what the lease renewals will cost.

Some businesses have been booted out of areas when the Indians don't renew.

 

[Dalton]

sold for 550k, someone took a nearly 800k loss, or the bank did......lets say they bought a 800k house for cash instead, generally, even in CA, as a long term rental it would get 4k+ a month, lesson- dont be greedy.

 

[evantwheeler]

As in Aspen colorado?

Poster has to be a bot….

 

[Swain]

My buddy bought his house in La Quinta on PGA west for 1.1M 2018. House is currently worth 2.6M. Love it out there. He rents it out if anyone’s looking for a cool spot

 

[Orange Juice]

If Palms springs is selling off at 50%, Havasu would more likely be taking a hit too, and I don’t see it. Obliviously this is a programmed reply by AI

 

[JFMFG]

My buddy bought his house in La Quinta on PGA west for 1.1M 2018. House is currently worth 2.6M. Love it out there. He rents it out if anyone’s looking for a cool spot

The houses at pga west are incredible. We sell to all 6 courses. Those members got some serious f**k you money

 

[HNL2LHC]

Another factor out in the Palm Springs area is the Indian Land Leases are aging many places out of financing acceptance. The land there was split up like a giant checkerboard. Indians have every other square. City hall is on leased land. The leases were initially fairly long, but now many are under 30 years remaining, and financing is more difficult to obtain. Prices are dropping to reflect that and the uncertainty of what the lease renewals will cost.

Some businesses have been booted out of areas when the Indians don't renew.

Thought that Hawaii was the only place with leased land…oh and the river areas. Crazy to think that people are thinking that the renewal is going to be affordable like it was when established some times up to 100 years. What was pennies at the time are thousands today. There is a condo in Kahala on Oahu. 30 years an ago we used to do a lot of renovations in this building. Today NONE. The prices of the suits had dropped significantl. The ones that are selling are to people who see the bargain for the time remaining and they plan on walking when the lease expires in just a couple of years. Crazy to see million dollar units selling for a few hundred thousand now.

A Hawai‘i Quirk: You Own the Home But Not the Land - Hawaii Business Magazine

About 1 in 8 condos for sale on O‘ahu are leasehold. Many, including some prestigious properties, are declining in value as the end of their land leases near.

www.hawaiibusiness.com

 

[rivrrts429]

The houses at pga west are incredible. We sell to all 6 courses. Those members got some serious f**k you money

My girlfriend’s Dad lives on PGA West. He owned car dealerships all over the country.

When you go to lunch in a corporate jet, yup, seriously fuck you money lol

 

[wet hull]

Wife and I were in Palm Springs for our anniversary in Aug. Place was dead. That was the big pool party weekend which in other years prior everywhere you turned you bumped into people. Last year the girls did a VRBO and the rules were so strict they were bored. Could make no noise, not even during the day. They were told security came around with noise monitors and would fine owners. Totally nuts and killed that town.