Low inventory and strong buyer activity has resulted in a 10.7% increase in average selling price across the palm Springs area when compared to the same month a year ago.
While home sales are not back to what they were pre-COVID-19, the number of homes sold has nearly doubled when compared to the prior month. The number of homes sold in June was 732, a decrease of -22.9% from a year ago but a strong increase of +52.8% from the prior month. Buyers are submitting offers — and we’re often seeing multiple offers —and they are following through to closing.
There were 4,482 homes available for sale in June 2019, and this month there are only 3,436 homes available for sale … a noticeable (-23.3%) 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 throughout the summer.
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 (+6.7%) over the same month last year, while the median price for attached homes (condos) is down (-6%).
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 $561,974 an Increase of (+10.7%) over the same month last year.
- Number of Days on Market. Days on market have increased (+2.5%), homes are selling on average of 81 days.
- The Number of Homes for Sale. There were 3,436 homes for sale last month, a (-23.3%) decline over June of last year. Inventory remains below average, if trends continue we'll see less 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 rates have dropped to 3.00% and 15-year fixed loans are at 2.625%. The FHA 30-year fixed rate stands at 2.75% and 30-year fixed jumbo loans are at 3.75%.
City Standouts! What’s Up and Who’s Down?
As indicated above, the Number of Homes Sold in June 2020 vs. June 2019 were down in all cities EXCEPT: Bermuda Dunes (+60%) and Coachella (+40%).
When it comes to Average Sold Price, Bermuda Dunes stood out with a whopping (+54.5%) increase over last June solds. Every city in the Coachella Valley experienced and increase in average sold price, reflective of supply constraints and strong buyer demand.
The Number of Days on Market Decreased for most city in the Coachella Vally EXCEPT; Desert Hot Springs, Palm Desert, Bermuda Dunes and Indian Wells.
City Watch - Rancho Mirage
Number of Homes for Sale = 458 (-11.2%)
Number of Homes Sold = 69 (-6.8%)
Average List Price = $984,026 (-2.1%)
Average Sale Price = $690,331 (+5.9%)
Average Days on Market = 86 (-8.5%)