Jerry Shea
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Exciting Changes are Happening in the Cathedral City Cove

I just listed and just sold 3 fantastic properties in the Cathedral City Cove and wanted to share with you the exciting changes going on in this wonderful, secluded neighborhood in the desert.


A few days ago I closed 38080 Charlesworth Drive. I put the for sale sign in the ground on the morning of July 24th, 2009 and within 4 hours the tractors descended, closed off the street and started tearing up all of the asphalt pavement in the last phase of the Cathedral City Sewer project. The street was basically closed for almost 6 months while I was trying to get the property sold. Not an easy task when REALTORS and agents can’t get to the house. However, a smart agent showed his clients the property and they loved it and closed escrow in 16 days. By the time the new owners moved in, the new streets, curbs and driveways were completed and looking great.  For the last 3 years, the Cove has been under siege by massive tractors and earth movers because the neighborhood was converted from septic systems to a new sewer system that also included new streets, curbs and driveways throughout the Cove. The Cove is a hidden gem in the desert because of it’s beautiful topography, surround on 3 sides by the rolling Santa Rosa Mountains and some of the most scenic hiking trails in the desert. It is nestled in the hills just above Highway 111 and tucked between Palm Springs and the multi-million dollar homes of Mirada in Rancho Mirage. It seems remote because of it’s natural boundaries, but is located just minutes from Palm Springs and Rancho Mirage. The Palm Springs Airport is only about 8 minutes away, but the flight pattern does not go over the Cove. When the economy turns around the Sheraton Hotel is planning on building a resort hotel on Hwy 111 just east of the Cove and will include a planned golf course that will go up the wash on the eastern side of the Cathedral City Cove. The building site has been cleared and is ready to go as soon as the financing is in place.

01_67945-foothill-rd-cathedral-cityI also just listed a fantastic property at 67945 Foothill Rd on what many think is the best street in the Cove. Foothill Rd. is the last street at the top of the Cove and is very private and serene. This 3 bedroom, 2 bath, 1706 sq. ft. home sits on a .43 acre lot that goes up the hill and has miles of open mountain ranges behind the property. From the top of the back yard you can see all the way across the valley to the back of the Joshua Tree mountains.  For those of you who are familiar with “The Living Desert” in Palm Desert you will think you have been transported to your Private ”Living Desert” in your own yard. It is practically impossible to find such a special property like this anywhere in the desert and especially not for under $350,000. If you would like a private showing of this peaceful property please call me at 766-567-9296 or use my Contact page to set up an appointment. Check out the virtual tour, here.

67955-foothill-rd-cathedral-city-ca-92234_01I recently sold the large home just to the east of this property at 67955 Foothill Rd. This property is in escrow and is contingent-upon the sale of the buyers property. This 4 bedroom, 4 bathroom, 3896 sq. ft home with a huge family room sits on a spectacular .42 acre terraced property and was the steal of the year. By the way, we are taking back-up-offers for this property in case the buyers’ home does not sell in time, so let me know if you are interested.

So what has the real estate market looked like in the Cove for the last 6 months?

The real estate market in The Cove has been one of the busiest markets in the desert in the last 6 months. 3-5 years ago The Cove was one of the hottest areas for people to move into. Many buyers were coming from Los Angeles, San Diego, San Francisco, Washington and Palm Springs to name just a few of the main feeder areas. As a result prices were climbing rapidly,  as they were throughout the desert, California and the rest of the U.S. Many buyers were buying these homes as second homes, but quickly rearranged their lives to make The Cove their full time residence.

When the real estate bubble burst throughout the U.S. and the desert a few years ago, The Cove was hit with a rash of foreclosures and short sales. As a result, property prices plummeted by 30-60%. At the same time the streets were all being torn up for the new sewer and street project and it looked like a war zone. The new sewers, streets, curbs and driveways are now complete and look fantastic. In the last year most of the foreclosures and short sales have been absorbed and the prices have stabilized. There will still be more foreclosures and short sales, but the banks are letting the foreclosures just trickle out. In spite of many rumors, the banks are not going to dump a new wave of foreclosures on the market. They are pricing them below market to get a feeding frenzy started and in most cases there are multiple offers on every well-priced property on the first day they are listed and they are selling for considerably more than list price. Believe me, they don’t last long. The banks are still playing games with short sales and they are taking several months to close, if they close at all. Word has it that this process is getting better. I have seen some improvement, but there is a long way to go. Buyers have to be careful that they don’t get stuck in a short sale process and miss out on serious motivated sellers who can sell their properties immediately.

Many buyers have taken advantage of the First Time Home Buyer Tax credit which was extended from November 30 to April 30. A home must close escrow by June 30, 2010 in order to qualify for the tax credit. This program has really given a boost to the real estate market throughout the desert and in The Cove because of the affordability of these wonderful properties.

44 % of the homes sold in the last 6 months in The Cove have been foreclosures and currently there are only 3 foreclosures for sale, once again proof that there are fewer foreclosures on the market than in the last several years. There are only 3 short sales on the market today and only 2 short sales closed in the last 6 months, while 5 of the 10 contingent properties are short sales and 2 of the 5 pending properties are short sales.

The following is a recap of the market statistics for the last 6 months for the Cathedral City Cove (As of 2-03-10):

There are a total of 1091 properties in the Cathedral City Cove of which 385 are in the Lower Cove, which is between Hwy 111 and Terrace Rd. and 706 properties are in the Upper Cove, which is between Terrace Rd. and Foothill Rd.

22 Homes Actively listed from $80k - $699k (click here  for details of the most recent active listings)

  • 3 are foreclosures from $80k - $314K

  • 3 are short sales from $150k - $449k

10 Homes are in the Contingent Status from $$84k - $410k

  • 1 is a foreclosure at $125k

  • 5 are short sales from $84k - $259k

4 Homes are Pending from $74k - $158k

  • 3 are foreclosures from $74k –$158k

  • 2 are short sales from at $109k - $174k

25 Homes Sold in the last 6 months from $110k - $401k

  • 11 were foreclosures from $110k - $392k

  • 2 were short sales from $150k - $175k

These statistics support my belief that most of the foreclosures and short sales have been absorbed and very few are currently active on the market. Since so many of the SOLD properties were foreclosures or short sales, the comps were pulled down for all home owners. This is very unfortunate for those that have to sell, but a huge advantage for those who want to buy. The sellers, for the most part, have finally understood the reality of the market and have been more realistic in their pricing. I turn down listings almost every day throughout the desert if sellers are not realistic with their pricing. I do not think it is fair to them to anticipate a sell that will probably never happen at that price and inconvenience them with prospective buyers traipsing through their homes. I tell them, if they do not have to sell right now, they should just enjoy their home for now and wait for the market to improve. On the other hand, many smart home owners are selling now at a realistic price and then buying another home at even a better price/value. Many sellers are taking advantage of this market and “upgrading” to a better property and are still coming out ahead.

For detail information on any of the properties in the Cathedral City Cove or anywhere else in the desert or to set up a private showing, please call me at 760-567-9296 or visit my website at

Click Here to Search the MLS for Homes in the Cathedral City Cove

Photographs of The Cathedral City Cove: