Inventory Constraints Continue to Ease, Sale Prices Continue to Rise
As we enter into our busiest time of year, we are seeing modest improvement in inventory levels, solid sales numbers, and a continued rise in average sale price.
Inventory constraints showed improvement this month, with the number of homes available for sale (-13.3%) below October of last year. That number is an improvement over the (-15%) we experienced the prior month. At the same time, the number of homes sold remained stable, while average selling prices rose nearly (+8%).
Trendvision’s® most recent year-over-year, October 2018 vs. October 2017 Report show that the largest increase in home sales last month once again took place with mid-range homes priced $500,000 to $999,999, with a (+15.9%) increase. Home sales dropped slightly in the Under $499,999 price point, but average selling prices in both of these categories rose last month.
Homes in the $1M+ price range saw a (+8.3%) increase in number of homes sold and a substantial drop in the number available for sale, down (-15.3%), while average selling price remained virtually the same as the same time last year.
Low Inventory Eases yet Homes Are Selling Quicker. Our Local Market Stays Strong!
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 Sold Prices rose overall in the Palm Springs area by (+8.1%) over the same month last year. The under $500,000 price range saw the biggest increase, (+6.9%) over October of last year, and the $500,000-$999,999 price range saw average selling prices rise (+3.0%).
Number of Days on Market dropped (-13.5%) overall compared to October of last year, with the biggest change in the $500,000-$999,999 price range, with a (-23.7%) reduction in Days on Market over the same period last year. Homes priced $1M+ took longer to sell, with Days on Market rising by (+34.8%) to 151 days.
The Number of Homes for Sale, recently at a 5-year low, was (-13.3%) lower than October 2017. For homes priced up to $499,999, inventory was (-17.9%) lower than last year, and buyers looking in this price range are finding it challenging to find good properties that meet their needs.
While inventory woes have eased somewhat, as we have seen all year, buyers have fewer homes to choose from, and sellers are finding they can command higher prices for their homes if they are in good condition and properly priced.
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City Standouts! What’s Up and Who’s Down?
Last month, as indicated above, the Number of Homes Sold in October 2018 vs. October 2017 were down in all but three of the cities, with an increase in the number of home sold in: Rancho Mirage up (+44.7%), Palm Desert up (+0.7%), La Quinta up (+11.6%). The largest percentage decline in home sales was in Bermuda Dunes (-36.4%) followed by Indian Wells with (-13.3%).
When looking at Average Sold Price, Bermuda Dunes saw the largest percentage increase with a (+33.2%) rise in average selling prices, with La Quinta and Indio following behind with (+15.9%) and (+13.3%) increases respectively. The largest drop in average selling prices last month was Rancho Mirage with a (-12.0%) drop in average selling prices.
The Number of Days on Market decreased by over 30% for four cities … Palm Desert (-35.2%), Bermuda Dunes (-34.5%), Rancho Mirage (-33.3%), Indian Wells (-32.5%) … with La Quinta and Coachella seeing an increase in time to sell of (+31.5%) and (+24.5%) respectively.
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