As we enter the holiday season and our weather starts to cool down, the desert the real estate market continues to heat up!
By now we all know the profound effects that COVID-19 has on the country’s economy, but it continues to drive sales in the desert’s real estate market. In fact, the increase in home sales we’ve seen over the last few months continues and shows no signs of slowing down.
The number of homes sold last month increased by +38.4% when compared to the same month a year ago. Buyers are active in all price ranges and good homes priced right continue to sell quickly. We’re still seeing multiple offers on many properties.
You’ve heard this story before … low inventory combined with strong buyer activity continues to drive our market, and as a result, we saw a +26.8% increase in the average selling price across the Palm Springs area when compared to the same month last year.
There were 2,917 homes available for sale last month, compared to the 3,771 homes that were available for sale in October 2019 … a (-22.6%) decrease in available housing over that period! Low inventory continues to be an issue for our buyers and so far we are not seeing the usual seasonal increase in new listings that are typical for this time of year. Could this be a year in which the seasonal increase in inventory doesn’t materialize? We’ll track this going forward to find out.
The high demand and low inventory have been major factors driving home price increases, with the median sale price for detached homes (single-family) up (+27.5%) over the same month last year, while the median price for attached homes (condos) is up (+12.7%).
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. The average home sale price last month in the Palm Springs area was $588,937 an Increase of (+26.8%) over the same month last year.
- Number of Days on Market. Days on market have decreased (-18.3%), homes are selling on average of 67 days.
- The Number of Homes for Sale. There were 2,917 homes for sale last month, a (-22.6%) decline over June of last year. Inventory remains below average, if trends continue we'll see less homes on the market over the coming months.
Interest rates are still at an all-time low and will continue to drive new purchases and refinance activity. 30-year fixed-rate mortgages are staying steady at 2.875% while the FHA fixed-rate edged up slightly to 2.5% and VA loans are at 2.986%.
City Standouts! What’s Up and Who’s Down?
You can really see the strength in our market — it’s actually quite pronounced — when you look at the numbers for each of the major cities in the area. The Number of Homes Sold in October 2020 vs. October 2019 is up in all cities except Desert Hot Springs (-7.7%) and Coachella (-34.7%). Palm Springs, Rancho Mirage, Indian Wells, and La Quinta saw the most dramatic increases in the number of homes sold, with (+70.8%), (+72%), (+225%) and (+74.3%) increases respectively.
When looking at the Average Selling Prices, Desert Hot Springs stood out with a strong (+34.7%) increase over last October’s solds. Every city in the Coachella Valley experienced an increase in average selling price last month!
The Number of Days on Market decreased for all cities in the Coachella Valley except for Palm Desert (+4.5%) and Indian Wells (+44.3%).
City Watch - Indio
Number of Homes for Sale = 371 (-12.7%)
Number of Homes Sold = 155 (+40.9%)
Average List Price = $453,668 (+6.3%)
Average Sale Price = $381,272 (+8.4%)
Average Days on Market = 52 (-30.6%)
If you're considering putting your home on the market, let us help you get it SOLD! We're seeing multiple offers for homes that are properly priced, and with fewer homes on the market, this could be the best time to get your home sold.
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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.
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