While the strong seller's market continues in the Palm Springs area, we are keeping an eye on some numbers that may indicate a slight shift in the market as we move through the summer selling season.
When we look at what's happening in the market over the last two months, we find that the number of new listings dropped -8.8% in June compared to May. We also notice that the number of homes for sale is down -9.3% in the same period. Average selling prices in June are also down -5.0% compared to May.
We're also monitoring the weekly trends over the past few weeks to see if we can observe any shifts in the market. We noticed an uptick of +4.3% in inventory over the last few weeks, and new escrows have begun to show a slight decline during that time. Closed transactions are also down slightly over the previous four weeks compared to the four weeks prior. These numbers could be early indicators of a shift from the intense seller's market we have experienced over the last year.
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 in the Palm Springs area was $715,606, increasing +27.3% over the same month the previous year.
- Number of Days on Market. Days on market have decreased -54.3%, and homes are selling on average of 37 days.
- The Number of Homes for Sale. There were 645 homes for sale last month, a -72.9% decline over June of last year. Inventory has hit an all-time low, and if trends continue, we'll see fewer homes on the market over the coming months.
The number of homes sold this month is up +41.9% compared to June of last year. New listings are snapped up quickly in this market, and it's the substantial number of sales keeping inventory at record low levels.
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 staying steady at 3.375%, while the FHA fixed-rate are at 2.99% and VA loans are at 2.99%.
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 June 2021 vs. June 2020 is up by double digits in all cities, led by Indian Wells +91.3%, Desert Hot Springs +77%, Cathedral City +69.2%, and Bermuda Dunes +56.3%.
Average Selling Prices were up in all cities except for Bermuda Dunes, which saw an -5.3% drop in average selling price. Indio had the biggest percentage increase in average selling prices with a +40.7% increase over last June sales. Indian Wells followed closely behind with a +40.2 increase in selling price and Desert Hot Springs with a +37.4 increase.
Homes continue to sell quickly, and Days on Marked dropped by over 50% in every city except for Cathedral City, down -47.5%, and Coachella, where Days on Marke remained flat at 34.
City Watch - Palm Springs
Number of Homes for Sale = 93 (-73.2%)
Number of Homes Sold = 247 (+39.5%)
Average List Price = $929,543 (+47.8%)
Average Sale Price = $723,987 (+20%)
Average Days on Market = 28 (+54%)
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.