As we enter the 4th quarter of 2020, we are seeing a remarkable upswing in the local real estate market!
Even though there has been an economic slowdown over the past five months due to COVID-19, home sales have increased dramatically — surpassing the number of homes sold last September. The number of homes sold increased +25.5% when compared to the same month a year ago. Buyers are buying in all price ranges and good homes priced right are selling quickly. We’re also frequently seeing multiple offers, a marked change from last summer.
Home selling prices are also on the rise, and low inventory, combined with unusually strong buyer activity, has resulted in a +24.13% increase in the average selling price across the Palm Springs area when compared to the same month last year.
Housing inventory stands at 2,909 homes available for sale, compared to the 3,782 homes that were available for sale in September 2019 … a significant (-23.1%) 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 inventory will remain below normal at least through December of this year.
The high demand and low inventory has been a major factor for home prices increasing, with the median sale price for detached homes (single-family) up (+20.4%) over the same month last year, while the median price for attached homes (condos) is down (-4%).
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 $583,927 an Increase of (+24.13%) over the same month last year.
- Number of Days on Market. Days on market have increased (+9.5%), homes are selling on average of 81 days.
- The Number of Homes for Sale. There were 2,909 homes for sale last month, a (-23.1%) decline over August of last year. Inventory remains below average, if trends continue we'll see fewer homes on the market over the coming months.
Interest rates are still at an all-time low and will continue to drive new purchases and refinance activity. 30-year fixed-rate mortgages are staying steady at 2.75% and 15-year fixed loans are at 2.375%. The FHA 30-year fixed rate stands at 2.75% and 30-year fixed jumbo loans are at 3.25% plus .375 points.
City Standouts! What’s Up and Who’s Down?
The strength in our market is best shown by the incredible increase in the number of homes sold across the valley last month. The Number of Homes Sold in August 2020 vs. August 2019 are up in all cities EXCEPT: Cathedral City (-9.3%), Desert Hot Springs (-20.3%) and Coachella (-39.1%). Indian Wells, La Quinta and Rancho Mirage saw the most dramatic increases in number of homes sold, with (+95.2%), (+78.8%), and (+73.9%) increases respectively.
When looking at the Average Selling Prices, La Quinta stood out with a whopping (+37%) increase over last August. Every city in the Coachella Valley experienced an increase in average sales price except for Indian Wells (-11.9%) and Bermuda Dunes (-13.6%).
The Number of Days on Market Increased for most cities in the Coachella Vally except for Rancho Mirage (-10.6%), Indian Wells (-31.3%), and Coachella (-23.4%).
City Watch - Rancho Mirage
Number of Homes for Sale = 413 (-0.2%)
Number of Homes Sold = 120 (+73.9%)
Average List Price = $984,043 (+6.7%)
Average Sale Price = $724,070 (+15.4%)
Average Days on Market = 93 (-10.6%)