La Quinta 2017 IN REVIEW / 2018 PROSPECTUS

    All the happenings that 2017 brought us both nationally and abroad were a bit overwhelming at times. Trying to keep up with the daily news (or fake news, depending on your political leaning) cycles covering tweets, nukes and hermit kingdoms was nearly impossible. No doubt this is an incredibly important time for our economy and nation, but the year left me feeling a bit battered and off balance like I just disembarked from a rough week at sea.

    2018 Economic OutlookOne thing that is hard to debate is the health of the US economy according to key economic indicators. According to the average estimate of 52 economists surveyed by Wolters Kluwer Blue Chip Economic Indicators in early December, GDP growth is to remain between 2-3% in 2018, while consumer spending and industrial production are to increase 2.5%. Growth in business investments is also to increase by 4.5%. All the while unemployment is projected to inch down from 4.1%, and the Dow is above 26,000 today (1/17/18). All indicators seem to point to a healthy and robust economy in 2018.

    Has the momentum of the economy translated to a positive outlook on home prices in La Quinta golf communities? The number of units sold increased 20% to 362 units in 2017, while median home prices decreased approx. 4% to $850,000 respectively. Average days on market decreased by almost 2 weeks to 135 days.

    La Quinta Housing Graph La Quinta Communities Graph
    I believe that due to the overall health of the economy and the relative value that can be still found in La Quinta golf communities (as compared to California’s costal communities) points to a strong La Quinta luxury real estate market in 2018.

    The table below shows all single-family homes and lots sold in select golf course communities 2017 with a complete breakdown of the year over year change for each community.

    2017 Year over Year % Change
    COMMUNITY Count Med. Sale Price Med. Sq Ft Av. Med. $/sqft DOM Count Med. Sale Price Med. Sq Ft Av. Med. $/sqft DOM
    The Tradition 13 $2,312,500 $4,581 505 $174 -13% 19% 4% 14% 55%
    The Quarry 3 $1,700,000 $9,200 185 112 -40% 7% 152% -58% -12%
    The Palms 11 $729,000 $3,547 206 87 83% 16% 28% -9% -66%
    The Madison 3 $7,800,000 $7,667 1,017 87 -50% 8% 9% -1% 53%
    The Hideaway 22 $2,050,000 $4,763 430 199 47% -27% -10% -19% 114%
    The Citrus 53 $700,000 $3,069 228 108 47% -7% -7% 0% -14%
    Rancho La Quinta CC 73 $820,000 2,924 280 95 62% 4% 3% 2% -13%
    PGA West Signature 1 $600,000 $3,451 174 $149 -75% -17% 39% -41% -31%
    PGA West Monterra 2 $749,000 3,370 222 15 N/A N/A N/A N/A N/A
    PGA Weiskopf 15 $800,000 3,320 241 $142 -17% -5% -2% -4% 46%
    PGA Stadium 8 $795,000 3,740 213 115 33% 24% 11% 12% -36%
    PGA Palmer Private 12 $572,500 $2,585 221 $106 50% -5% -9% 4% -38%
    PGA Nicklaus Trnamnt 21 $760,000 3,142 242 79 5% -5% -7% 2% 4%
    PGA Nicklaus Private 20 $642,500 $2,883 223 $80 5% -4% -3% -1% -26%
    PGA Legends 22 $903,750 3,359 269 89 -15% 14% -2% 17% 3%
    PGA Greg Norman 19 $1,010,000 $3,829 264 $105 46% 2% -3% 4% -45%
    Mountain View CC 38 $824,500 $2,975 277 $122 41% 8% 0% 8% -23%
    Andalusia at CM 26 $1,442,500 $3,612 399 $130 -19% -14% -14% -1% 233%
    LOTS & LAND
    2017 Year over Year % Change
    COMMUNITY Count Med. Sale Price Med. Sq Ft Av. Med. $/sqft DOM Count Med. Sale Price Med. Sq Ft Av. Med. $/sqft DOM
    The Tradition 7 $380,000  N/A  N/A $77 40% 35%  N/A  N/A -59%
    The Quarry 4 $347,500  N/A  N/A 12 100% 17%  N/A  N/A -95%
    The Palms 0  N/A  N/A  N/A $0 -100% -100%  N/A  N/A -100%
    The Madison 10 $1,325,000  N/A  N/A 28 25% 6%  N/A  N/A -81%
    The Hideaway 15 $550,000  N/A  N/A $138 67% 38%  N/A  N/A -22%

     

    To see other stats, visit our January monthly sold data.

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