This month we have two new listings in Palm Desert, a tastefully updated Monterey Country Club condo that has fabulous mountain views, and a condo in Palm Desert Tennis Club that was originally owned by Rod Laver! 

We have one “Coming Soon” listing, in the gated community of Los Lagos in Indian Wells that has water views, owned solar, and an EV charging station.

We closed on three homes last month and we're looking forward to helping several current clients find their perfect desert home!

The Palm Springs area real estate market remains strong as we move towards the end of the spring season here in the desert! We are starting to see an increase in homes available for sale, buyer demand is still strong, and average selling prices continue to increase slightly. 

The number of homes for sale in the Palm Springs area has increased +15% in April 2022 compared to April 2021. The increase in new listings, while encouraging for buyers, is not sufficient to meet current demands as continued strong buyer activity results in the latest listings selling quickly.

New listings were down -14.2% from a week ago, but the number of homes available for sale is up +5.6% in that same week. New escrows and closed transactions are also down -8.2% and -2.6% respectively and this could be a sign of a shift in the market.  

Sales activity was down last month, with 944 homes sold in April compared to 1,112 sold in March, a month-over-month decrease of -15.1%. When compared to last year, you find  -25.8% drop in sales activity compared to April of the last year.

The month-over-month average selling price for April has decreased -1.8% from March, but when you compare this number to April of last year, the average sale price was up +30.5%. So while the rapid rise in selling prices has slowed down recently, they are up dramatically compared to last year. The big question is will the rise in selling prices come to an end as we enter the summer selling season.

Let's look at the key market indicators that show how our market is performing compared to this time last year; Average Sold Price, Number of Days on Market, and Number of Homes for Sale.

• Average Home Sale Prices.  The average home sale price last month in the Palm Springs area was $885,000 an Increase of (+30.5%) over the same month last year.
• Number of Days on Market. Days on market have decreased (-42.6%), with homes selling in an average of 27 days.
• The Number of Homes for Sale. There were 781 homes for sale last month, a (+15%) increase over April of last year. Inventory is still at near all-time lows, but if trends continue we'll see more homes on the market over the coming months.

Interest rates are rising and have passed the 5% mark. Conforming 30-year fixed-rate mortgages are at 5.375%, while the FHA fixed-rate are at 4.99%, VA loans are at 4.99%, and jumbo 30-year fixed is at 5.50%. Given a large number of cash purchases in the area, we are not yet seeing any material impact on the market from rising interest rates.

City Standouts! What's Up and Who's Down?

You can get a better view of the trends in our market when you look at the numbers for each major city in the area. 

The Number of Homes Sold in April 2022 vs. April 2021 has decreased in all cities except for Desert Hot Springs (+28.1%), and Coachella (+18.8%). The largest percentage drop in sales last month was in Indian Wells (-46.8%), La Quinta (-39%), and Bermuda Dunes (-33.3%).

When it comes to Average Selling Price, prices were up the most in La Quinta with a  (+55.9%%) increase over last April. Once again the highest average selling price was in Indian Wells where the average home sold for $1,843,100 last month. Every city in the Coachella Valley experienced an increase in the average selling price.

Homes continue to sell quickly, and The number of Days on Market decreased for all cities in the Coachella Valley, with most homes selling in well less than 30 days.

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City Watch - Rancho Mirage

Number of Homes for Sale = 93 (-28.5%)

Number of Homes Sold = 93 (-28.5%)

Average List Price = $1,770,000 (+13.4%)

Average Sale Price = $1,131,255 (+35.3 %)

Average Days on Market = 27 (-55.7%)

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If you're considering putting your home on the market, let us help you get it SOLD! We see multiple offers for properly priced homes, and with fewer homes on the market, this could be the best time to get your home sold.

If you'd like a detailed market report for a specific city, email us and let us know which city reports you'd like to receive.

Give us a call at (760) 625-7229, or visit www.thehamiltonregroup.com, for an easy-to-use home search, and for information on how we can help you with all your important real estate needs.

The Hamilton Real Estate Group is evolving to meet all of our customer's real estate needs. If you are ready to sell, call or email us, or for a FREE instant home valuation report, click here: What's My Home Worth?

The real estate market in the Palm Springs area is clearly in flux as we see inventory rise to the highest levels in a year and a half.

New listings continue to rise and we're starting to see more price reductions. All of this combined with a slight downturn in buyer activity is starting to make things more favorable for buyers.

With inventory continuing to rise in the Palm Springs area and buyer activity off slightly from normal, we may be witnessing the start of a shift in our local real estate market. 

With the Coachella Music & Arts Festival and Stagecoach Music Festivals behind us, you'll still find a variety of interesting activities to keep you busy during the month of May here in the Palm Springs area. You'll find two music festivals, two film festivals, great art exhibitions, and plenty of live music and theater to enjoy. It's a great time to visit and enjoy the Coachella Valley when it's a bit more relaxed once most of our winter visitors have returned home.

THINGS TO DO IN MAY

SPECIAL EVENTS

Joshua Tree Music Festival - May 12-15

The Joshua Tree Music Festival returns with live music experiences and workshops designed to uplift and inspire. Focused on music by lesser-known indie musicians, this biannual event features a variety of music including dance, world, electro-funk & groove. You'll enjoy "movement medicine" in the mornings and musical acts in the afternoon and evening. And don't forget to check out their Cozy Camper Trailers!

For more information click HERE.

Inventory hit the highest number in over two years as we find over 840 homes available for sale in the Palm Springs area. Buyer activity was down over last week as well, and we had more price reductions than we've seen in quite some time.

Inventory in the Palm Springs area continues on a very slight upward trend, as it has most of this year. But it's not nearly enough to satisfy demand and stem the continued increase in average selling prices.

This month we have one new listing in Cathedral City, and it’s already under contract. Homes in the $500,000 and below price points move quickly in this market. 

We have two new “Coming Soon” listings, one in Palm Desert Tennis Club and one in Monterey Country Club. Both will go live in the MLS on April 22 and we’ll start showings shortly thereafter. 

The Palm Springs area real estate market remains strong as we move towards the end of high season here in the desert! We are beginning to see a slight uptick in homes available for sale, buyer demand is still robust, and average selling prices continue to rise. It's that "new normal" we continue to experience this year.

Are we seeing a shift in the Palm Springs area real estate market?

New listings and inventory rose two weeks in a row and are at their highest levels since the beginning of the year. 

Price reductions are up over the last 2 weeks as well, so we'll keep an eye on the numbers going forward to see if this is the beginning of a shift in the market.