The Palm Springs area real estate market remains strong as we move towards the end of the spring season here in the desert! We are starting to see an increase in homes available for sale, buyer demand is still strong, and average selling prices continue to increase slightly.
The number of homes for sale in the Palm Springs area has increased +15% in April 2022 compared to April 2021. The increase in new listings, while encouraging for buyers, is not sufficient to meet current demands as continued strong buyer activity results in the latest listings selling quickly.
New listings were down -14.2% from a week ago, but the number of homes available for sale is up +5.6% in that same week. New escrows and closed transactions are also down -8.2% and -2.6% respectively and this could be a sign of a shift in the market.
Sales activity was down last month, with 944 homes sold in April compared to 1,112 sold in March, a month-over-month decrease of -15.1%. When compared to last year, you find -25.8% drop in sales activity compared to April of the last year.
The month-over-month average selling price for April has decreased -1.8% from March, but when you compare this number to April of last year, the average sale price was up +30.5%. So while the rapid rise in selling prices has slowed down recently, they are up dramatically compared to last year. The big question is will the rise in selling prices come to an end as we enter the summer selling season.
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. The average home sale price last month in the Palm Springs area was $885,000 an Increase of (+30.5%) over the same month last year.
- Number of Days on Market. Days on market have decreased (-42.6%), with homes selling in an average of 27 days.
- The Number of Homes for Sale. There were 781 homes for sale last month, a (+15%) increase over April of last year. Inventory is still at near all-time lows, but if trends continue we'll see more homes on the market over the coming months.
Interest rates are rising and have passed the 5% mark. Conforming 30-year fixed-rate mortgages are at 5.375%, while the FHA fixed-rate are at 4.99%, VA loans are at 4.99%, and jumbo 30-year fixed is at 5.50%. Given a large number of cash purchases in the area, we are not yet seeing any material impact on the market from rising interest rates.
City Standouts! What's Up and Who's Down?
You can get a better view of the trends in our market when you look at the numbers for each major city in the area.
The Number of Homes Sold in April 2022 vs. April 2021 has decreased in all cities except for Desert Hot Springs (+28.1%), and Coachella (+18.8%). The largest percentage drop in sales last month was in Indian Wells (-46.8%), La Quinta (-39%), and Bermuda Dunes (-33.3%).
When it comes to Average Selling Price, prices were up the most in La Quinta with a (+55.9%%) increase over last April. Once again the highest average selling price was in Indian Wells where the average home sold for $1,843,100 last month. Every city in the Coachella Valley experienced an increase in the average selling price.
Homes continue to sell quickly, and The number of Days on Market decreased for all cities in the Coachella Valley, with most homes selling in well less than 30 days.
City Watch - Rancho Mirage
Number of Homes for Sale = 93 (-28.5%)
Number of Homes Sold = 93 (-28.5%)
Average List Price = $1,770,000 (+13.4%)
Average Sale Price = $1,131,255 (+35.3 %)
Average Days on Market = 27 (-55.7%)
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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