Home sales in the greater Palm Springs area continue to show strength when compared to the same time last year. We've seen an increase in the number of homes sold each of the first three months of the year, and in February a total of 787 homes were sold, a 16.6% increase over the number sold last February.
Buyer activity continues to be strong, even though available inventory continues to be running well below last year. At the risk of sounding like a broken record, we continue to see fewer homes for sale, making it a challenge for our buyers to find that perfect home.
There were 5,063 homes available for sale in February 2019, and this month there are 4,113 homes available for sale … a noticeable (-18.8%) decrease in available housing over that period!
The low inventory is continuing to push home prices higher … the median price for detached homes (single-family) was up (+8.4%) over the same month last year while the median price for attached homes (condos) was up (+1.8%).
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 $550,935 an Increase of (+10.5%) over the same month last year.
- Number of Days on Market. Days on market remain constant, with homes selling in an average of 77 days.
- The Number of Homes for Sale. There were 4,113 homes for sale last month, a (-18.8%) decline over February of last year. While inventory remains below average, if past trends continue we'll see more homes come on the market over the coming months.
Interest rates continue to be very attractive and that will continue to drive new purchases and refinance activity. 30-year fixed-rate mortgages are remaining steady at 3.375% and the FHA 30-year fixed rate stands at 3.375%. If you’re financing a larger amount, the Jumbo 30-year fixed-rate is still attractive at 3.5% and the Jumbo 5-year ARM is 3%.
City Standouts! What’s Up and Who’s Down?
Most of our cities once again experienced an increase in the number of homes sold, led by Coachella (+50%), Bermuda Dunes (+43%) and Indio (+40%). Palm Springs and Desert Hot Springs saw home sales drop (-5.5%) and (-17%) respectively.
When it comes to Average Sale Price, Bermuda Dunes led the pack with a strong (+56%) increase over last February, followed by Palm Desert (+39%) and Desert Hot Springs (+21.7%). Only Rancho Mirage, Indian Wells and La Quinta experienced decreases in average selling price percentages.
The Number of Days on Market decreased for about half the cities in the Coachella Vally, with homes taking longer to sell last month in Palm Springs (+42.6%), Cathedral City (+23.6%), and Indian Wells (+19.6%).
City Watch - Cathedral City
Number of Homes for Sale = 250 (-817.2%)
Number of Homes Sold = 60 (+5.3%)
Average List Price = $359,294 (+12.2%)
Average Sale Price = $359,010 (+17.9%)
Average Days on Market = 68 (+23.6%)
If you're considering putting your home on the market, let us help you get it SOLD!
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