Summer sales activity in the Palm Springs area is the strongest many can remember in quite some time. Buyer activity is strong, and while our lower summer inventory is resulting in fewer sales, the average selling prices for homes rose again this month, with home prices rising in all cities except for Indian Wells.
Inventory was virtually the same as it was this time last year, and with interest rates remaining well below 4%, there is nothing on the horizon that indicates any slowdown in our sales activity over the summer.
Trendvision’s® most recent year-over-year, June 2019 vs. June 2018 Report shows (-5.2%) fewer homes sold last month. The number of homes sold was up(+16.0%) in the $500,000 - $999,999 price bracket, down (-9.6%) in the under $500K price range, and down (-7.7%) for homes selling for over $1M.
While inventory began a return to normal this month, the under $500,000-$999,999 and $1M+ price ranges experienced slight inventory decreases of (-2.6%) and (-4.0%) respectively. Inventory rose (+2.5%) in the under $500K price range over the same period last year.
Average selling prices rose across all price bands, led by a (+10.8%) increase for homes priced $1M+ and (+5.4%) for homes priced under $500K. The $500,000-$999,999 price band was essentially flat with a (+1.7%) increase in average selling price.
Interest rates have stayed well below 4% for the last few months, and that is clearly helping the market. 30-year fixed rate mortgages are at a competitive 3.375% and the FHA 30-year fixed rate is 3.75%. If you’re financing a larger amount, the Jumbo 30-year fixed rates dropped to 3.875% and adjustable Jumbo loans can be had for as low as 3.5%.
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 rose overall in the Palm Springs area by (+5.8%) over the same month last year. The biggest gains once again were, once again, for homes priced $1M+ with a robust (+10.8%) increase.
- Number of Days on Market dropped (-3.4%) compared to June of last year, with the biggest change in the $1M+ price range with a (-27.3%) decrease, and the under $500,000-$999,999 price range saw a (-10.5%) drop. Homes priced under $500K took longer to sell last month with Days on Market increasing (+5.1%).
- The Number of Homes for Sale. There were 3,121 homes for sale last June, virtually unchanged from June of last year (-0.2%). If trends from past years hold true, we could expect to see inventory drop another 16% by August, after which seasonal listing activity typically begins its annual upward trend.
The trend we have seen all year long continues… good homes priced right are selling quicker and for more money that they did a year ago.
City Standouts! What’s Up and Who’s Down?
With home sales down slightly across the Palm Springs area this month, we find the number of Homes Sold was down in all but 3 cities for June 2019 vs. June 2018. Sales were up in Palm Desert (+3.4%), La Quinta (+11.7%) & Desert Hot Springs (+20%), while the biggest percentage drop in sales was found in Coachella down (-50.0%), followed by Indian Wells down (-24.3%) and Bermuda Dunes down (-23.1).
Average selling prices were up across the board, with all cities except for Indian Wells showing price gains. The biggest percentage increases were in La Quinta (+20.1%), followed by Bermuda Dunes (+19.7%), and PalmSprings at (+13.5%).
City Watch - Indian Wells
Number of Homes for Sale = 189 - Up (+6.8%)
Number of Homes Sold = 84 - Down (-24.3%)
Average List Price = $1.736M - Up (+1.3%)
Average Sale Price = $1.292M - Up (+26.3%)
Average Sale Price Per Sq. Ft. = $377 - Up (+13.7%)
Average Days on Market = 118 - Down (-13.2%)
The Number of Days on Market was down overall, with only four cities showing an increase, Desert Hot Springs (+21.9%), Indio (+6.2%), Palm Springs (+3.8%), and La Quinta (+2.1%).
With fewer homes available for sale, and buyer activity up, this could be the perfect time to get your home sold!
If you'd like a detailed market report for a specific city, just click here: 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?