Aug. 16, 2020
As we cross the halfway point of 2020, we are seeing a remarkable recovery in the local Palm Springs area real estate market!
After a dramatic drop in home sales in April and May, home sales have bounced back dramatically from the COVID-19 shutdown, actually surpassing the number of homes sold last July. The number of homes sold increased +6.3% when compared to the same month a year ago. Buyers are submitting offers — and we’re often seeing multiple offers — and they are following through to closing.
Home selling prices are also on the rise, and low inventory, combined with unusually strong buyer activity has resulted in a +17.22% increase in the average selling price across the Palm Springs area when compared to the same month last year.
Housing inventory stands at 3,140 homes available for sale, compared to the 4,096 homes that were available for sale in July 2019 … a significant (-23.3%) decrease in available housing over that period! Low inventory continues to be a problem here in the Palm Springs area, and I would anticipate that inventory will remain below normal at least throughout the summer.
The high demand and low inventory has been a major factor for home prices increasing, with the median sale price for detached homes (single-family) up (+10.2%) over the same month last year, while the median price for attached homes (condos) is down (-2.1%).
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 $535,194 an Increase of (+17.22%) over the same month last year.
- Number of Days on Market. Days on market have increased (+2.6%), homes are selling on average of 80 days.
- The Number of Homes for Sale. There were 3,140 homes for sale last month, a (-23.3%) decline over July of last year. Inventory remains below average, if trends continue we'll see fewer 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 rates have dropped to 2.75% and 15-year fixed loans are at 2.375%. The FHA 30-year fixed rate stands at 2.75% and 30-year fixed jumbo loans are at 3.25% plus .375 points.
City Standouts! What’s Up and Who’s Down?
As indicated above, the Number of Homes Sold in July 2020 vs. July 2019 are up in all cities except Cathedral City (-1.2%), Palm Desert (-2%) and Indio (-4.3%). The largest jump in home sales was seen in Indian Wells, with a (+40.7%) increase in the number of homes sold.
When it comes to Average Sale Price, Desert Hot Springs stood out with a strong (+23%) increase in sales over last July. Every city in the Coachella Valley experienced an increase in average selling price except for Rancho Mirage (-2%) and Bermuda Dunes (-1.5%).
The number of Days on Market decreased for most cities in the Coachella Vally except for Palm Springs and Palm Desert. Generally speaking, strong buyer activity is resulting in most homes selling much quicker than last year.
City Watch - Indio
Number of Homes for Sale = 362 (-26.7%)
Number of Homes Sold = 132 (-4.3%)
Average List Price = $454,519 (+11.0%)
Average Sale Price = $374,011 (+9.6%)
Average Days on Market = 68 (-0.0%)
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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