Home sales in the greater Palm Springs area continued to show strength last month, although it's too soon to tell how much impact the Coronavirus will have on sales going forward. Compared to the same month last year, we've seen a slight decrease in the number of homes sold ... in March a total of 915 homes were sold, a -7.8% decrease over the number sold last March.
There were 5,045 homes available for sale in March 2019, and this month there are 3.992 homes available for sale … a noticeable (-20.9%) 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 we'll see the number of homes available for sale go even lower as we move into the summer selling season.
The low inventory has been pushing home prices higher for most cities, with the median sale price for detached homes (single-family) up (+4%) over the same month last year, while the median price for attached homes (condos) was up (+1.7%).
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 $521,398 a decrease of (-2.22%) over the same month last year.
- Number of Days on Market. Days on market have decreased (-2.5%), homes are selling fast for an average of 79 days.
- The Number of Homes for Sale. There were 3,992 homes for sale last month, a (-20.9%) decline over March of last year. Inventory remains below average, and we're entering what is traditionally the time of year with the fewest homes on the market. I anticipate that the summer selling season will see a further drop in inventory due to Coronavirus concerns.
Interest rates continue to be very attractive and that will continue to drive new purchases and refinance activity. Conforming 30-year fixed-rate mortgages rates have dropped to 3.375% and the FHA 30-year fixed rate stands at 3.375% as well. 30-year fixed Jumbo loans are now offered at 4.375%
City Standouts! What’s Up and Who’s Down?
All but three of our cities experienced a decrease in the number of homes sold last month. Increases in sales were led by Bermuda Dues (+36.5%), followed by La Quinta (+11.5%) and Desert Hot Springs (+7.3%). Coachella and Indian Wells saw the largest drop in the number of homes sold, with (-43.7%) and (-23.7%) drops respectively.
When it comes to Average Selling Prices, about half of our cities saw price increases, with Rancho Mirage showing a healthy (+26%) increase over last March solds. Palm Desert, Bermuda Dunes, Indian Wells, Indio and La Quinta experienced decreases in average sold price percentages, with the larges drop in average sale prices in Indian Wells (-25%).
The Number of Days on Market decreased for most of the cities in the Coachella Vally, with homes taking longer to sell last month in Palm Springs (+1.6%), Cathedral City (+31.5%), and Rancho Mirage (+13.4%).
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