122 means it is hot hot hot

Palm Springs broke a record yesterday with 122. Another record expected today. But the pools at Palermo are refreshing, and busy. Miss Penny Lane says: Regardless of the temperatures, Palermo is always sizzling.

Be cool

Heat warnings are in effect across the West. Triple digits set for Palm Springs, with 134 degree in Death Valley and even 102 degrees in Idaho. Miss Penny Lane says: At Palermo, everyone is always cool.

Valley home price tags up 24 percent from last May

Good news on home prices in the morning newspaper: "The Coachella Valley’s median home price continued its upward trajectory in May, jumping 17.8 percent year-over-year to $257,500 and marking the 11th straight month of double-digit increases, a new report shows. The median price – half sold for more, half for less – has risen substantially from 2011 and early 2012, when it typically hovered around $165,000 to $170,000, San Diego-based real estate information provider DataQuick reported. Ann Ritchie, executive vice president of Palm Desert-based California Desert Association of Realtors, said one reason for the upward trend in valley home prices is the continued decline of short sales and bargain bank-owned properties, which have fallen off dramatically over the past few years. Distressed properties accounted for 15 percent of single-family and 10 percent of condo sales valley-wide in May, far below levels that approached 60 or 70 percent during some months at the height of the recession. “The average price of a home sold through the Desert Area Multiple Listing Service rose 24 percent in May over May 2012,” said Ritchie.Low inventories are contributing to higher prices, she said. “The average price of a condo rose 10 percent in that same time period.” Miss Penny Lane says: Hooray!

Palermo desirability Index - 61 to 87

Today we have the remaining two-bedroom condos on the Palermo Desirability Index, based on the "final release price" of the developer. The prices were based on intrinsic factors such as views, size of the back yards and privacy, not later upgrades such as back yard landscaping, outdoor fireplaces or improved bathroom tiles, etc. For more background on these original prices, please see our posting from earlier this month that goes in detail. Here is the list:

61. 3594 Penny Lane, Unit 101, D model, $400,000
61. 3586 Sunburst Blvd., Unit 188, G model, $400,000
61. 3587 Quiet Side St., Unit 190, G model, $400,000
64. 265 Sandy Point Trail, Unit 124, C model, $392,000
65. 262 Breeze Loop, Unit 127, C model, $392,000
66. 3543 Penny Lane, Unit 95, B model, $390,000
66. 3553 Penny Lane, Unit 96, B model, $390,000
66. 3563 Penny Lane, Unit 97, C model, $390,000
69. 268 Sandy Point Trail, Unit 143, B model $388,000
69. 278 Sandy Point Trail, Unit 144, C model, $388,000
71. 258 Sandy Point Trail, Unit 142, B model, $386,000
72. 3552 Melody Lane, Unit 87, B model, $385,000
73. 3551 Melody Lane, Unit 68, C model, $384,000
73. 3521 Melody Lane, Unit 69, A model, $384,000
73. 3571 Melody Lane, Unit 70, B model, $384,000
73. 3581 Melody Lane, Unit 71, B model, $384,000
73. 3631 Melody Lane, Unit 76, B model, $384,000
73. 3641 Melody Lane, Unit 77, B model, $384,000
73. 3651 Melody Lane, Unit 78, C model, $384,000
73. 232 Breeze Loop, Unit 131, B model, $384,000
73. 235 Sandy Point, Unit 132, C model, $384,000
73. 222 Breeze Loop, Unit 133, B model, $384,000
73. 225 Sandy Point Trail, Unit 134, C model, $383,000
84. 3572 Melody Lane, Unit 89, C model, $380,000
85. 3696 Sunburst Blvd., Unit 206, G model, $379,000
86. 3562 Melody Lane, Unit 88, B model, $377,000
86. 3582 Melody Lane, Unit 90, C model, $377,000
87. 218 Sandy Point, Unit 138, B model, $361,000
87. 228 Sandy Point, Unit 139, B model, $361,000

Miss Penny Lane says: As she's said before, every condo on the list is a gem to her.

Palermo Desirability Index - 41 to 60

Happy Friday morning, Palermo Palm Springs. Here is the next installment of Palermo Palm Springs Desirability Index, based on the original "final release price" of the developer. The prices were based on intrinsic factors such as views, size of the back yards and privacy, not later upgrades such as back yard landscaping, outdoor fireplaces or improved bathroom tiles, etc. For more background on these original prices, please see our posting from earlier this week. Here is the list:

41. 3575 Sunburst Blvd., Unit 117, B model, $420,000

42. 242 Breeze Loop, Unit 129, A model, $419,000

42. 212 Breeze Loop, Unit 135, A model, $419,000

44. 3535 Sunburst Blvd., Unit 113, C model, $416,000

44. 3545 Sunburst Blvd., Unit 114, C model, $416,000

46. 301 Breeze Loop, Unit 120 D model, $411,000

47. 3555 Sunburst Blvd., Unit 115, C model, $410,000

47. 3565 Sunburst Blvd., Unit 116, B model, $410,000

49. 3574 Penny Lane, Unit 103, C model, $408,000

49. 3564 Penny Lane, Unit 104, C model, $408,000

49. 3554 Penny Lane, Unit 105, B model, $408,000

49. 3554 Penny Lane, Unit 106, B model, $408,000

53. 3541 Melody Lane, Unit 67, D model, $406,000

53. 3601 Melody Lane, Unit 73, D model, $406,000

53. 311 Breeze Loop, Unit 119, D model, $406,000

53. 3697 Quiet Side St., Unit 211, G model, $406,000

57. 3584 Penny Lane, Unit 102, C model, $403,000

57. 208 Sandy Point Trail, Unit 137, A model, $403,000

57. 238 Sandy Point Trail, Unit 140, A model, $403,000

60. 3611 Melody Lane, Unit 74, D model, $402,000

Miss Penny Lane says: With this addition, we're half way through the list, and she finds every unit on it to be a gem.

Palermo Desirability Index - 21 to 40

After publishing the top 20 from the developer's price list, we have been asked to publish the rest. Here is the second top 20 in Palermo Palm Springs Desirability Index, based on the original "final release price" of the developer. The prices were based on intrinsic factors such as views, size of the back yards and privacy, not later upgrades such as back yard landscaping, outdoor fireplaces or improved bathroom tiles, etc. According to our research, though, it does appear that the units at the top of the index have had more upgrades as the original buyers, who paid more for their units also sprang for more upgrades. For example, a big percentage of the private pools, spools and spas that were put in at Palermo were installed in the units near the top of the index. Conversely, original buyers who wanted a lower price didn't shell out as often for the upgrades offered by the builder. Those owners here at the beginning may remember that in those pre-construction days that the sales team in the trailer were aiming for at least $20,000 in upgrades per unit. (For more background on these original prices, please see our posting from earlier this week.) Here is the list:

21. 241 Breeze Loop, Unit 99, A model, $450,000
21. 231 Breeze Loop, Unit 100, A model, $450,000
23. 3548 Foothill Ave., Unit 178, G model, $446,000
24. 230 Enterprise Way, Unit 92, A model, $443,000
24. 240 Enterprise Way, Unit 93, A model, $443,000
24. 3533 Penny Lane, Unit 94, A model, $443,000
24. 3573 Penny Lane, Unit 98, A model, $443,000
28. 288 Sandy Point Trail, Unit 145, A model, $439,000
29. 3522 Melody Lane, Unit 84, D model, $436,000
29. 3592 Melody Lane, Unit 91, D model, $436,000
29. 3558 Quiet Side St., Unit 179, G model, $436,000
32. 3521 Melody Lane, Unit 65, A model, $435,000
32. 3531 Melody Lane, Unit 66, A model, $435,000
32. 3671 Melody Lane, Unit 80, A model, $435,000
32. 3681 Melody Lane, Unit 81, A model, $435,000
32. 3621 Melody Lane, Unit 75, A model, $431,000
37. 3661 Melody Lane, Unit 79, A model, $431,000
37. 3532 Melody Lane, Unit 85, D model, $431,000
39. 3542 Melody Lane, Unit 86, A model, $429,000
40. 248 Sandy Point Trail, Unit 141, A model, $423,000

Miss Penny Lane says: She loves the top 40.

Penny Lane view

A classic view from Penny Lane (the street, that is). Miss Penny Lane says: She views Palermo as the best place to be.

Palermo Desirability Index

Positively Palermo has received some more e-mails asking that we discuss home sales and prices, so we thought we would repost this from two years ago ... Palermo Palm Springs has 117 residences. First, let’s examine the seven model types. There are four model types (A, B, C, and D) with two-bedrooms and two stories. There is one model (G) with two bedrooms in a single level. The developer generally priced the two-bedroom models in this order: A unit had highest price, D unit had the second, B and C tied for third, and then the G unit. There also are two models (E and F) with one bedroom in a single level. The F unit is bigger than the E unit. 

However, the developer in the initial sales push didn’t treat all of the units of the same model type equally. That is, for example, the price of a D unit could vary from another D unit, depending on location, views, yard size, privacy and other factors. Below, we have listed the top most desirable units based on the original “final unit release price” furnished to us. Please note that these prices may not have been what the units eventually sold for — but the list serves as a guide to the residences considered to be premium ones. We’re highlighting these "top 20" to show that the appraisers and banks are being short-sighted when selling individual units at prices that don't take into account distinguishing factors. All of Palermo's 117 units, not just these 20, should be evaluated individually by appraisers, and then the prices for all of us should go up. (Also, please note  “final unit release price” on these 20 units below and the other 97 units do not include pools or spas they were added.)

1. 260 Enterprise Way, A unit, $481,000

1. 270 Enterprise Way, A unit, $481,000

1. 3534 Penny Lane, A unit, $481,000

4. 250 Enterprise Way, A unit, $480,000

5. 3585 Sunburst Blvd., A unit, $477,000

6. 302 Breeze Loop, A unit, $473,000

6. 210 Enterprise Way, D unit, $473,000

8. 280 Enterprise Way, A unit $470,000

8. 318 Sandy Point Trail, A unit, $470,000

10. 312 Breeze Loop, A unit, $468,000

11. 3525 Sunburst Blvd., D unit, $466,000

12. 308 Sandy Point Trail, A unit, $463,000

13. 220 Enterprise Way, D unit, $463,000

14. 272 Breeze Loop, A unit, $461,000

14. 3591 Melody Lane, A unit, $461,000

14. 255 Sandy Point Trail, A unit, $461,000

17. 215 Sandy Point Trail, D unit, $460,000

18. 252 Breeze Loop, D unit, $456,000

18. 245 Sandy Point Trail, A unit, $456,000

18. 275 Sandy Point Trail, D unit, $456,000

For comparison sake, some A and D units not considered prime units had original “final release prices” that were $50,000 to $75,000 below the premium locations. Most of the B and C units had “final release pricing” in the mid to high $300,000s as they shared more common walls, weren’t on corners, and had smaller back yards. They were a few exceptions in the low $400,000s. The developer initially pre-sold a large number of Palermo residences with many of the prime units now in private hands. The developer apparently instituted more uniform model pricing as the economic downfall hit and as its unit inventory went down to 34 unsold residences. Miss Penny Lane says: She loves them all.

Avalon picture

A picture from the Avalon development. Miss Penny Lane says: Sometimes she feels like this.

Trash can blues

Positively Palermo received this e-mail request: "Miss Penny Lane, Thank you for your work for Palermo! But please tell people that the garbage trucks only take recyclables on Thursdays. My neighbor of years still can't get it right!" Miss Penny Lane says: She's glad that's the only thing to be blue about at Palermo.