We got a strong start to the new year in the Palm Springs area with a healthy increase in the number of homes sold compared to January of last year. A total of 740 homes were sold in January, a 19.2% increase over the number sold this time last year. Overall buyer activity remains strong, but the low inventory is making it difficult for buyers to find the perfect home. The continued strength in our market is driven by historically low interest rates, relatively affordable housing, and the quality of life the area affords.
Inventory constraints continue, and we once again see a noticeable drop in available homes for sale compared to last year. There were 4,568 homes available for sale in January 2019, and this month there are 3,785 homes available for sale … that’s a (-17.1%) decrease in available housing over 12 months!
The low inventory is continuing to push home prices higher … the median price for detached homes (single-family) was up (+10.5%) over the same month last year. The median price for attached homes (condos) was up (+2.0%) over last year.
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 $494,922 a decrease of (-2.98%) over the same month last year.
- Number of Days on Market. Days on Market remain constant, with homes selling in an average of 79 days.
- The Number of Homes for Sale. There were 3,785 homes for sale last month, a (-17.2%) decline over January 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 3.625% 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 3.375% and the Jumbo 5-year ARM is 3%.
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City Standouts! Who's Up and Who’s Down?
As indicated above, the Number of Homes Sold in January 2020 vs. January 2019 were up in all cities EXCEPT; Palm Desert (-9.5%), Bermuda Dunes (-27.3%) and Coachella (-17.6%). All other cities saw increases in the number of homes sold, with strong gains in Cathedral City (+76.5%), Indian Wells (+45%), and La Quinta (+34%).
When looking at Average Sold Price, Coachella stood out with a solid (+18%) increase over last January solds. Only Rancho Mirage, La Quinta and Indio experienced decreases in average selling prices.
The Number of Days on Market Increased for every city in the Coachella Vally EXCEPT; Palm Desert, Indio and Coachella. The largest decreases in selling time was in Coachella (-34.2%), Palm Desert (-26.9%) and Indio (-34.2%). Cathedral City and Bermuda Dunes experienced the biggest increase in selling times, up (+37.2%) and (+33.7%) respectively.
City Watch - Indian Wells
Number of Homes for Sale = 227 (-8.8%)
Number of Homes Sold = 29 (+45%)
Average List Price = $1,511,466 (-6.53%)
Average Sale Price = $942,296 (+14.5%)
Average Days on Market = 92 (+7.0%)
Our buyer activity remains strong, and many are having difficulty finding the right home. If you're considering putting your home on the market, let us help you get it 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.
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