With our first full month of data since COVID-19, we are now starting to see the impact of the virus on our local real estate market. The bottom line ... sales dropped dramatically while selling prices remained stable.
Home prices in the greater Palm Springs area continued to show strength for most cities, even though sales have been impacted by the Coronavirus. Compared to the same month last year, we've seen a decrease in the number of homes sold ... in April a total of 576 homes were sold, a -47% decrease over the same time last year. Based on recent Market Watch statistics from Palm Springs Life magazine, we anticipate that home sales will level out and will start to trend upward in the months to come.
Inventory is still near record lows! There were 4,999 homes available for sale in April 2019, and this month there are only 3,653 homes available for sale … a (-26.9%) 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 we'll see the number of homes available for sale to remain below normal as we move into the summer selling season.
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 $505,136, essentially flat over the same month last year.
- Number of Days on Market. Days on market have increased slightly (+1.3%), with homes still selling relatively quickly, an average of 78 days compared to 77 over the same month last year.
- The Number of Homes for Sale. There were 3,653 homes for sale last month, a (-26.9%) decline over April of last year. Inventory remains below average, if trends continue we'll see fewer homes on the market over the coming months.
Interest rates remain near all-time lows and will continue to drive new purchases and refinance activity. Conforming 30-year fixed-rate mortgages rates have dropped to 2.875% and conforming 15-year fixed loans are at 2.75%. You can get a 5/1 ARM for 2.875% and the FHA 30-year fixed rate stands at 2.75%.
City Standouts! What’s Up and Who’s Down?
As you can see, the Number of Homes Sold in April 2020 vs. April 2019 was down in all cities, with the least impact felt in Coachella and Cathedral City.
When it comes to Average Sold Price, Coachella stood out with a (+22.2%%) increase over last April. Only Rancho Mirage, Indio, Indian Wells, and La Quinta experienced decreases in average sold price percentages, with the largest drop in average sale prices in Indian Wells (-38.6%).
City Watch - Palm Desert
Number of Homes for Sale = 843 (-20.9%)
Number of Homes Sold = 114 (-50.2%)
Average List Price = $746,627 (+7.3%)
Average Sale Price = $504,185 (+12.2%)
Average Days on Market = 77 (+2.7%)
The Number of Days on Market decreased for every city in the Coachella Vally EXCEPT; Palm Springs (+3.6%), Cathedral City (+8.3%), Palm Desert (+2.7%), Bermuda Dunes (+21.7%), and Indian Wells (+56.7%).