River Estates is a gated waterfront community in Blythe, California. Because it faces the Colorado River (state line), you are literally across the river from the state of Arizona. River Estates at Hidden Beaches (its full name) has a total of 99 lots and is located just north of town. The community was developed by Roger Snellenberger in the 2005 time frame. At the time, waterfront lots were selling for over $300,000 and there were waterfront homes selling in the $600,000 to $700,000 range. Obviously, the bursting of the housing bubble has had a dramatic effect on prices, yet River Estates remains arguably the most sought after area for single family homes in Southeastern California.

While Blythe is by no means a high-value real estate market—in fact, it is one of the least expensive places to live in Southern California—River Estates riverfront homes still sell in the mid to upper range of $300,000. Riverfront is a key factor. While people who live across the street from the river can still take advantage of the community boat dock and a short walk to the Colorado River, they are still not waterfront and this can mean a difference of $100,000 or more in value. Because the community is new, all the houses are new houses and there are no houses out of place or in need of demolition. Homes typically have a number of upgrades like granite counter tops, tile floors, deep boat garages, etc. The HOA takes care of homeowners’ front yards, ensuring better curb appeal for the community as a whole.

River Estates still has foreclosures and short sales being processed from 2013; however, these numbers are declining. In the coming year, experts anticipate virtually every home and lot will be in stronger hands with lower interest rates locked in that make another wave of foreclosures unlikely. Since riverfront lots have been selling for as low as $69,000, new construction may be coming in the near future, but those buyers are more likely to stick around for a few years until asking prices for homes increase significantly for new construction to make sense. Because River Estates homes are attractive to some of Blythe’s highest earners, home price appreciation will likely require more income growth for people like doctors, business executives and retired investors. While this has not been the case in California’s desert areas for the past several years, this could change in the not-too-distant future.