The Palm Springs Area real estate market continues to show strength, even over the holiday season. Overall buyer activity is strong, and buyers seem to be staying in the market throughout December.
For buyers feeling like they are having a difficult time finding the perfect home, that feeling is supported by the data. While inventory here is seasonal, with the most homes on the market in April/May, you can see a clear trend over the last three years … 5,819 homes were available for sale in December of 2016, and this month there are 3,983 homes available for sale … that’s a (-31.5%) decrease in available housing over three years!
As you might expect, that decrease in inventory is pushing selling prices upward. The median price for detached homes (single-family) was up (+5.0%) over the same month last year and the median price for attached homes (condos) was up (+3.7%) 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 $495,474, a (+7.5%) increase over the same month last year.
- Number of Days on Market. Homes took longer to sell last month, with days on market rising by (+5.7%) over last year to 74 days.
- The Number of Homes for Sale. There were 3,983 homes for sale last month, a (+6.1%) increase over last month and an (-11.0%) decline over November of last year. Inventory continues to be below average, even as we see our usual seasonal increase in available homes for sale.
The consensus of most we talk to who analyze our market is that the current trends will continue through 2021, driven by four key factors: 1) buyers relocating here from more expensive markets, 2) baby boomers retiring here due to our quality of life, 3) continued strength in the 2nd/vacation home market, and 4) strong population and wage growth in the Coachella Valley
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 3.73% and a 5-Year ARM can be found for 3.36%. The FHA 30-year fixed rate stands at 3.4%, and if you’re financing a larger amount, the Jumbo 30-year fixed-rate are still attractive at 4.0%.
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City Standouts! What’s Up and Who’s Down?
The Number of Homes Sold in November 2019 vs. November 2018 was down in most cities, with the following experiencing an increase the number of homes sold: Desert Hot Springs (+33.3%), Rancho Mirage (+9.4%), Indian Wells (+6.7%) and Coachella (+100%). The drop in sales is primarily due to the lack of inventory in the area.
When it comes to Average Sold Price, Palm Desert stood out with a strong (+21.3%) increase over last November, with Rancho Mirage right behind with a (+20.1%) increase. Only Desert Hot Springs, Bermuda Dunes, Indian Wells and Indio experienced decreases in average sold prices last month. As is often the case, Indian Wells had the highest average sale price in the area.
Homes are selling quicker than they were this time last year in half of the cities in the Coachella Valley. The Number of Days on Market dropped in Bermuda Dunes (-27.7%), La Quinta (-24.7%), Cathedral City (-18.6%), Rancho Mirage (-9.2%), and Palm Desert (-5.2%).
City Watch - Rancho Mirage
Number of Homes for Sale = 431 (-4.2%)
Number of Homes Sold = 58 (+9.4%)
Average List Price = $1,043,718 (-1.3%)
Average Sale Price = $645,457 (+20.1%)
Average Days on Market = 79 (-9.2%)
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!
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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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