We continue to see strong home sales activity in the Palm Springs area, with home prices continuing their upward trend while homes are selling faster than they were at this time last year. Inventory was up over last year — just barely — for the first time in many months, and with interest rates dropping below 4%, we anticipate a strong selling season throughout the summer
Trendvision’s® most recent year-over-year, May 2019 vs. May 2018 Report shows (-5.0%) fewer homes sold last month while inventory increased slightly thought the Palm Springs area. The number of homes sold was up (+1.5%) in the under $500,000 - $999,999 price bracket, down (-5.8%) in the under $500K price range, and down (-14.5%) for homes selling for over $1M.
Inventory constraints eased slightly again this month in both the under $500K and $500,000-$999,999 price ranges, with inventory increases of (+3.0%) and (+1.1%) respectively. Inventory dropped (-7.7%) in the $1M+ price range over the same period last year.
Average selling prices rose (+22.4%) for homes priced $1M+ and (+4.1%) for homes priced under $500K, while remaining essentially flat in the other price band.
Interest rates are still very attractive and have dropped back below 4%, which is helping the market. 30-year fixed rate mortgages stayed constant at 3.99% and the FHA 30-year fixed rate is 3.875%. If you’re financing a larger amount, the Jumbo 30-year fixed rates are 4.00% and adjustable Jumbo loans can be had for as low as 3.375%.
Let’s look at the three key market indicators, Average Sold Price, Number of Homes for Sale, and Number of Days on Market, for a good snapshot of the Palm Springs area real estate market and, its overall health.
- Average Home Sale Prices rose overall in the Palm Springs area by (+5.8%) over the same month last year. The biggest gains once again were for homes priced $1M+ with a robust (+22.4%) increase.
- Number of Days on Market dropped (-4.4%) compared to May of last year, with the biggest change in the $500,000-$999,999 price range with a (-9.0%) decrease, and the under $500,000 price range saw a (-4.7%) drop. Homes priced $1M+ took longer to sell last month with Days on Market increasing (+7.3%).
- The Number of Homes for Sale. The number of homes for sale showed a slight uptick last month to 3,024, a small (+0.6%) increase over the same month last year. We are entering our typical seasonal decline in listings, but so far the decline is less severe than it was last year at this time.
The trend we have seen all year long continues… it’s a seller’s market in most areas, and homes that are priced right are selling quickly at or above asking.
City Standouts! What’s Up and Who’s Down?
Once gain we saw a drop in the Number of Homes Sold in May 2019 vs. May 2018, with home sales down (-5.0%) across the Palm Springs area. The biggest percentage drop in sales were found in Bermuda Dunes down (-35.0%), Indian Wells down (-34.9%) and La Quinta down (-25.4%). Three cities saw an increase in sales; Cathedral City sales rose (+11.8%), Palm Desert sales increased (+9.1%), and home sales in Indio were up (+0.8%).
Last month average selling prices rose in all but two cities, with the biggest increases in Indian Wells (+46.6%) and La Quinta (+19.1%). Selling prices were down in Bermuda Dunes, with a (-8.2%) drop in sale prices and Rancho Mirage saw a (-2.0%) drop in sale prices.
City Watch - La Quinta
Number of Homes for Sale = 671 - Down (-5.6%)
Number of Homes Sold = 135 - Down (-25.4%)
Average List Price = $1.05M - Down (-13.8%)
Average Sale Price = $792,000 - Up (+19.1%)
Average Sale Price Per Sq. Ft. = $263 - Up (+12.9%)
Average Days on Market = 107 - Down (-0.9%)
The Number of Days on Market was down in four cities, with Coachella experiencing the largest drop of (-52.6%).
Current trends have us in a seller’s market in most areas, with homes selling quickly and desirable homes priced right receiving multiple offers.
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