Oct. 11, 2019
It’s official … our seasonal visitors are quickly returning to the desert and we are fast entering the prime selling season here in the Palm Springs area. The transport vehicles are dropping off cars from the north, the Costco is busy with visitors stocking their winter homes for the season, and it’s starting to get a bit more challenging to book that favorite restaurant!
And for real estate, it’s time for many of those renters to start their search for a more permanent place they can call “home” when they’re here in the desert.
We’re starting to see a return to normal inventory levels, and we anticipate more homes coming on the market as we move into the new year. Buyer activity is above normal levels for this time of year, and we may be seeing the trend of few homes sold compared to last year start to reverse itself.
Most cities experience an increase in home sales last month and there were strong price gains in most cities as well. Homes did take a bit longer to sell, but the strength in the market this time of year could indicate good news for sellers as we move in to the new year.
Our most recent year-over-year, September 2019 vs. September 2018 data shows (+8.4%) more homes sold last month in the area. The luxury market continues to perform well, with the number of homes sold up (+37.5%) in the $1M price bracket. The $500-$999,999 price range showed strength last month with a healthy (+17.7%) increase in the number of homes sold. The under $500K price range was up (+3.4%) with 546 units sold.
The the biggest jump in average selling prices was in the $1M+ price range, with a (+14.6%) increas in average selling price. The under $500K price range showed a modest (+4.4%) increase in selling prices and selling prices in the $500-$999,999 price range showing a slight (-1.6%) decline.
Interest rates remain near record lows, and that is a clear contributor to the strength of our market. 30-year fixed-rate mortgages are remain steady at 3.375% and the FHA 30-year fixed rate has dropeed 2.75%. If you’re financing a larger amount, the Jumbo 30-year fixed rate are still attractive at 3.75%. If you're not in the market to purchase a home, it make be worth considering a refinance ... many clients are able to reduce their payment by $200-$300 per month with current rates.
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 rose to $466,097 in the Palm Springs area last month, a (+9.6%) over the same month last year.
- Number of Days on Market. Homes took longer to sell last month, with days on market rising by (+12.5%) to 90 days. This is a change in recent trends and is consistent across all price levels.
- The Number of Homes for Sale. There were 3,728 homes for sale last month, a slight (-1.1%) decline over September of last year. If typical seasonal trends hold true, this should be the low point for inventory for the year, and we should start to see a greater selection of homes available for sale from now through April.
We'll be keeping an eye on these trends as rumors of a pending recsession, the upcoming election cycle, and a recent trend of rising prices in the area could all have an impact our local real estate market.
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City Standouts! What’s Up and Who’s Down?
We continue to see strong gains in home sales, and the data supports our anecdotal evidence of strong buyer activity throughout the year. The number of Homes Sold was up in all but two cities last month. Indian Wells (+25%), La Quinta (+15.5%), and Ranch Mirage (+14.5%) saw the biggest sales increases over the same month last year, with Indio showing a strong (+10.2%) increase. Home sales dropped (-16.7%) in Coachella and Palm Desert saw a small dip in sales, down (-3.9%).
Once again we see selling prices up in most cities, with all cities except for Palm Springs, Indio, and Desert Hot Springs showing price gains. The biggest percentage gains last month were in Coachella (+98.2%), followed by Indian Wells (+52.4%), La Quinta (+12.3%). And no, that's not a typo for Coachella ... with only 10 units sold, and one of them for over $1.7M, that big sale had a dramatic impact on the average for the month of September.
City Watch - Desert Hot Springs
Number of Homes for Sale = 201 - Up (+5.2%)
Number of Homes Sold = 39 - (+8.3%)
Average List Price = $299,737 (+8.8%)
Average Sale Price = $209,569 (-5.01%)
Average Days on Market = 59 (-3.3%)
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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