Mid-Century Modern Homes

 

When it comes to mid-century modern architecture, there’s no better place than Palm Springs to view some of the very best homes ever built in this iconic style. Mid-century modern homes in Palm Springs have, in fact, become a significant tourist draw in recent years, attracting just as much attention as the city’s famed resorts, golf courses and spectacular natural setting.

Due to its extensive and well-preserved collection of mid-century modern homes, the National Trust for Historic Preservation named the city to its prestigious annual list of “America’s Dozen Distinctive Destinations” in 2006. “Palm Springs,” said the Trust’s president, Richard More, “is not a city of architectural re-creations or approximations of previous eras. Instead, it is a remarkably intact and authentic expression of its architectural heritage.”

Mid-century modern homes in Palm Springs were built by many of the movement’s most renowned names – Richard Neutra, Albert Frey, William F. Cody, John Lautner, Donald Wexler, and the builders/developers George and Robert Alexander, among others. What is arguably the most famous piece of residential real estate in the city, the Neutra-designed Kaufmann Desert House, is a premier example of the streamlined, light and airy designs that are characteristic of mid-century modern architecture.

Influence on of REO sales on MCM

We recently did our Business Plan to Sell a 3 bedroom Mid-Century Modern for a client in Rancho Mirage. Naturally, part of that is to look at recent sales activity. Here’s what we found;

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Each bar shows how many homes were sold in that month. This supports our conclusion that sales are increasing, even if prices aren’t . So we looked at the next layer of the onion, and found things aren’t quite so good. 12 of the 17 sales this year in this group were distressed sales (bank-owned or REO, and short sales).

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Still, non-REO sales are increasing. Furthermore, there is only 1 Active short-sale property in this group on the market, as of the date of this writing, so regular sales have less competition at the moment. Not shown here is a detectable trend that distressed sale prices are slightly increasing.

We might conclude that REO sales have drawn Buyers back in to the market, and this is good for all homeowners. Things are still tough though and you will need good marketing to sell your home.

Sales Decline In Large Expensive Homes – A Symptom

A significant drop in the number of sales of large homes over $3,000,000 can be attributed to falling sales prices, fewer buyers, or both. There is no doubt prices have fallen at the high-end, so many have dropped out of this niche, but it also shows that high-end sellers should attempt to price below this no-man’s land.

Home Sales Over $3,000,000
Home Sales Over $3,000,000

Sale prices could drop more in any given development if they haven’t returned to circa-2003 levels that deflate prices back to their non-bubble growth rate. This has happened in several local high-end communities, so there are some good deals around, but not all.

Those holding out for a return to the top, may wait a long time. It took LA ten years to recover from the 1990’s housing decline. Housing appreciates at the inflation rate, around 2.5%, so it could take even longer than that. This applies to all price ranges. If you want to sell, price to market. Most buyers are then confident that they can buy safely.