Aug. 13, 2019
Summer sales activity in the Palm Springs area remains strong, and reversing our trend of fewer homes sold that we've experienced over the last few months, we saw home sales rise (+0.9%) overall in July. That may be partly due to the increase in the number of homes available for sale as the inventory shortages have kept sales down over the last few months. The average selling prices for homes continued to rise this month, with home prices rising in virtually all cities across the valley.
In reviewing data for the last 3 months, it appears that our inventory shortages may be coming to an end. There were 2,771 homes available for sale in July of this year, virtually unchanged from the same period last year. The quarterly data shows the same trend ... a return to normal inventory levels for this time of year. August is typically the month with the fewest homes for sale, and we would expect to see more homes come on the market as we move into fall.
Trendvision’s® most recent year-over-year, July 2019 vs. July 2018 Report shows (+0.9%) more homes sold last month. The number of homes sold was up (+11.7%) in the $500,000 - $999,999 price bracket, down (-2.9%) in the under $500K price range, and up (-15.6%) for homes selling for over $1M.
Inventory began a return to normal this month, with the $500,000-$999,999 price range showing a (+4.0%) increase in available homes, the under $500K price range remaining essentially flat, and the and $1M+ price range experiencing a (-5.7%) dip in the number of homes available for sale.
Average selling prices continued to rise (+3.0%) for homes priced under $500K and homes priced $1M+ saw a (+4.0%) rise in average selling prices compared to the same month a year ago. The $500,000-$999,999 price band saw a slight (-1.5%) drop in average selling prices and those prices remain flat when looking at the last 3 months data.
Interest rates remain well below 4% for the last few months, and that is clearly helping the market. 30-year fixed-rate mortgages are at a competitive 3.73% and the FHA 30-year fixed rate is 3.42%. If you’re financing a larger amount, the Jumbo 30-year fixed rates are still attractive, at 4.03%, and adjustable Jumbo loans can be had for as low as 3.88%.
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, and when looking at the last quarter's data you see the same trend. Prices are clearly on the rise in the area.
- Number of Days on Market dropped (-6.7%) compared to July of last year, consistent with the trend for the last 3 months. The biggest change was in the $1M+ price range with a (-10.4%) decrease, and the under $500,000 price range saw a (-9.5%) drop. Homes priced under $500,000 - $999,999 took longer to sell last month with Days on Market increasing by (+3.1%).
- The Number of Homes for Sale. There were 2,7771 homes for sale last July, virtually unchanged from July of last year and a (-11.1%) drop from last month. Inventory should start it's typical seasonal rise starting next month, which should continue to push the number of homes sold higher.
The trend we have seen all year long continues… good homes priced right are selling quicker and for more money that they did a year ago.
City Standouts! What’s Up and Who’s Down?
With home inventory returning to normal levels and a slight increase in home sales, we find the number of Homes Sold was up half of the cities for July 2019 vs. July 2018. Sales were up in Indian Wells (+42.1%), Indio (+19.1%), Palm Desert (+11.4%), Bermuda Dunes (+5.9%), and Palm Springs (+1.0%). The biggest percentage drop in sales was found in Coachella, down for the 2nd month in a row (-28.6%).
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Average selling prices were up across the board, with all cities except for Bermuda Dunes showing price gains. The biggest percentage increases last month were in Desert Hot Springs (+18.1%), followed by Palm Desert (+12.2%), Coachella (+11.9%), and Rancho Mirage (+11.3%)
City Watch - Cathedral City
Number of Homes for Sale = 136 - Up (-13.9%)
Number of Homes Sold = 79 - Down (-7.1%)
Average List Price = $367K - Up (+10.r%)
Average Sale Price = $309K - Up (+4.0%)
Average Sale Price Per Sq. Ft. = $189 - Up (+8.0%)
Average Days on Market = 64 - Down (-14.7%)
The Number of Days on Market was down in five cites last month, with these cities showing an increase, Indian Wells (+50.0%), Bermuda Dunes (+36.1%), Coachella (+21.3%), Desert Hot Springs (+18.4%), and Rancho Mirage (+1.8%).
Our buyer activity remains strong, and many are having difficulty finding the right home. If you're considering putting your home on the market, let us help you get it SOLD!
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?
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
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