While the real estate market continues to be strong in the Palm Springs area, we are still waiting for our inventory to return to normal as we close out the summer. Our market continues to be characterized by low inventory that's resulting in fewer sales than last year, with homes still selling quickly for top dollar. While the number of new listings has is down, it still appears that the upward trend in inventory is due to some buyers sitting on the sidelines.
When we look at what's happening in the market month to month, we find that the number of homes for sale is up +8.7% in August compared to July. The number of homes sold this past month is down -16% compared to July and the average selling prices in August is up +1.4% compared to July.
Will we see a shift from the intense seller's market we have experienced recently? It's really still too soon to tell. Much of the lack of inventory was attributed to seller reluctance to list their homes for sale due to COVID concerns. Moving into October we will see major events, like the Indian Wells tennis tournament, return to the desert. That, along with cooler weather, will bring many of our seasonal visitors back to the Coachella Valley. Will a gradual return to a more "normal" existence result in more homes being listed for sale? Conventional wisdom says "yes", but the only way to know for sure is to stay on top of the numbers so we can spot those market shifts as they occur.
For weekly updates and to see if this short-term trend becomes the beginning of an adjustment to our local market, check out our weekly update each Monday at
Let's look at the key market indicators that show how our market is performing compared to this time last year; Average Sold Price, Number of Days on Market, and Number of Homes for Sale.
- Average Home Sale Prices. Last month, the average home sale price last month in the Palm Springs area was $663,070 an Increase of (+14%) over the same month last year.
- Number of Days on Market. Days on market have decreased (-64%), homes are selling on average of 32 days.
- The Number of Homes for Sale. There were 829 homes for sale last month, a (-58%) decline over August of last year. Inventory remains well below normal for this time of year.
Interest rates are still at an all-time low and will continue to drive new purchases and refinance activity. Conforming 30-year fixed-rate mortgages are at 3.250%, while the FHA fixed-rate are at 2.875% and VA loans are at 2.875%
City Standouts! What’s Up and Who’s Down?
You can see the strength in our market when you look at the numbers for each major city in the area.
The Number of Homes Sold in August 2021 vs. August 2020 is down in all cities except for Desert Hot Springs +15%, Cathedral City +16.2%, and Coachella +14.3%. The biggest percentage drop in sales was in Indian Wells, down -51.2%
When it comes to Average Selling Price, Coachella stood out with a huge +49.8.% increase over last August's solds. Every city in the Coachella Valley experienced an increase in average selling price except for Bermuda Dunes, which was down -8.3%. Once again the highest average sale price was in Indian Wells at $1,118,000.
Homes continue to sell quickly, and The Number of Days on Market decreased dramatically for all cities in the Coachella Valley except for Coachella, which remained flat.
City Watch - Rancho Mirage
Number of Homes for Sale = 889 (-66%)
Number of Homes Sold = 65 (-45.8%)
Average List Price = $1,392,751 (+41.9%)
Average Sale Price = $899,319 (+24.2%)
Average Days on Market = 36 (-61.3%)
If you're considering putting your home on the market, let us help you get it SOLD! We see multiple offers for properly priced homes, and with fewer homes on the market, this could be the best time to get your home sold.
If you'd like a detailed market report for a specific city, email us and let us know which city reports you'd like to receive.
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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