With COVID-19 becoming a “normal” part of our day to day life, many people are evaluating how they want to live in this “new normal”. As a result, we are seeing a migration to the desert from the big cities by those seeking a more relaxed lifestyle or simply looking for a place for a temporary getaway from the stress of city life. The Coachella Valley’s relatively small population, blue skies, warm weather, and palm trees make the perfect destination for these buyers.
Our valley’s natural beauty, relaxed vibrant lifestyle, and good home values have resulted in a buying frenzy, as is evident in the increase in home sales over the last few months that shows no signs of slowing down.
The number of homes sold last month increased by +17.7% and the number of pending sales is up +110% when compared to the same month a year ago. Buyers are active in all price ranges and good homes priced right continue to sell quickly. Every new listing is attracting a ton of interest and many homes are selling for over asking with multiple offers.
Buyers getting homes under contract quickly causes home values to increase dramatically. When one buyer loses a home to another buyer with a stronger offer, they tend to offer a high price at the next home so they don't lose it. This is driving average selling prices higher, increasing the average selling price by +25.3% across the Palm Springs area when compared to the same month last year.
There were 1,272 homes available for sale last month, compared to the 3,256 homes that were available for sale in January 2020 … a (-60.9%) decrease in available housing over that period! Low inventory continues to be a problem for our buyers and inventory levels are remaining consistent with what we saw for the last 6 months.
The high demand and low inventory have been major factors driving home price increases, with the median sale price for detached homes (single-family) up (+21.8%) over the same month last year, while the median price for attached homes (condos) is up (+19.8%).
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 $626,430 an Increase of (+25.3%) over the same month last year.
- Number of Days on Market. Days on market have decreased (-23.2%), homes are selling on average of 63 days.
- The Number of Homes for Sale. There were 1,272 homes for sale last month, a (-60.9%) decline over December of last year. Inventory hits an all-time low, if trends continue we'll see fewer homes on the market over the coming months than in prior years.
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 2.75% while the FHA fixed-rate edged up slightly to 2.75% and VA loans are at 2.75%
City Standouts! What’s Up and Who’s Down?
You can really see the strength in our market when you look at the numbers for each of the major cities in the area. The Number of Homes Sold in January 2021 vs. January 2020 is up in all cities except for Desert Hot Springs (-9.6%).
When looking at the Average Selling Prices, Palm Springs stood out with a strong (+30.8%) increase over last January. Every city in the Coachella Valley experienced an increase in average selling price.
The Number of Days on Market decreased for all cities in the Coachella Valley except for Desert Hot Springs (+4.5%) and Palm Desert (+10.5%.)
City Watch - Rancho Mirage
Number of Homes for Sale = 283 (-35.7%)
Number of Homes Sold = 97 (+36.6%)
Average List Price = $1,122,846 (+8.79%)
Average Sale Price = $735,589 (+8.95%)
Average Days on Market = 70 (-30.5%)
If you're considering putting your home on the market, let us help you get it SOLD! We're seeing multiple offers for homes that are properly priced, 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, just click here and let us know which city reports you’d like to receive: Send Me A City Report.
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.
The Hamilton Real Estate Group is evolving to meet all of our customer’s real estate needs. If you are ready to sell, call or email us, or for a FREE instant home valuation report, click here: What's My Home Worth?