Inventory Shortages Eased a Bit, But Strong Sales Continued Last Month
While inventory was still (-15%) below September of last year, that number is an improvement over the (-25%) we’ve been experiencing over the last few months. At the same time, sales softened slightly, while average selling prices continued to rise.
Trendvision’s® most recent year-over-year, September 2018 vs. September 2017 Report show that the largest increase in home sales last month took place with mid-range homes priced $500,000 to $999,999. Homes sales in this price range increased on average by (+21.9%) over the same period last year.
The two other home pricing categories showed moderate declines in the Number of Homes Sold, (-9.3%) for homes priced Up to $499,999, and (-5.9%) for homes priced 1M+. At the same time, average sale prices rose slightly for homes under 1M, with the largest percentage price increase in homes priced up to $499,999, with a (+5%) increase in average selling price.
Low Inventory Eases yet Homes Are Selling Quicker. Our Local Market Stays Strong!
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 Sold Prices fell for homes priced 1M+ to an average of $1,505,000, (-3.3%) less than last September. Prices rose by (+5%) and (+2.6%) over last year, for homes priced Up to $499,999, and homes priced $500,000-$999,999.
- Number of Days on Market continue their downward trend this month. Homes Up to $499,999 saw days on market drop by (-13%) to 80 days, and continue to be our “best sellers”. Homes 1M+ sold in (-6.7%) fewer days on market, followed by Homes priced $500,000-999,999 selling in (-5.5%) fewer days. Overall, properly priced homes are selling in under 3 months throughout the valley.
- The Number of Homes for Sale continues to remain low, with (-15%) fewer homes for sale than this time last year. We did see 121 new homes come on the market in September, a small (+4.6%) increase over the prior month.
All three of these indices reveal that, as we have seen all year, on average, there are still fewer homes on the market, and the ones that are sell quicker and at higher prices compared to September a year ago.
City Standouts! What’s Up and Who’s Down?
For the most part, as indicated above, the Number of Homes Sold in September 2018 vs. September 2017 were down in about 1/2 of the cities, with four cities showing increased home sales: Rancho Mirage up (+21.8%), Palm Desert up (+2.3%), Bermuda Dunes up (+116.7%), and Coachella up (+6.7%).
When it comes to Average Sold Price, Palm Springs stood out with a strong (+27%) increase over last September, and Coachella prices increased (+14.3%). Only Indian Wells and Rancho Mirage experienced decreases in sold price percentages.
The Number of Days on Market decreased for every city EXCEPT Bermuda Dunes, Indian Wells and Coachella. Double-digit percentage declines as high as (-29%) for Palm Desert, (-15.6%) for Rancho Mirage and (-14.3%) For La Quinta. Then there is (-9.2%) for Palm Springs, (-7.3%) for Desert Hot Springs, (-3.4%) for Cathedral City and (-2.5%) for Indio.
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.
The Hamilton Real Estate Group is evolving to meet all of our customer’s real estate needs. If you are ready to sell, call or email us, or for a FREE instant home valuation report, click here: What's My Home Worth?