Home sales in the Palm Springs area rebounded with strong sales numbers across most cities in the valley. Overall buyer activity remains strong and we continue to see good homes that are priced right selling quickly, often with multiple offers. We did not experience the typical December slowdown that often accompanies the holiday season, and sales trends continue to bode well for sellers in 2020.
Inventory constraints continue into the busy season, and we once again see a rather dramatic drop in available homes for sale compared to 3 years ago. There were 4,585 homes available for sale in January 2018, and this month there are 2,998 homes available for sale … that’s a (-34.6%) decrease in available housing over three years!
The low inventory is continuing to push home prices higher … the median price for detached homes (single-family) was up (+9.0%) over the same month last year … that’s the highest single-year increase on record! The median price for attached homes (condos) was up (+2.0%) over last year, and while price increases for condos accelerated about two years ago, we see price gains for condos starting to soften a bit.
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 $492,233, a (+1.5%) increase over the same month last year.
- Number of Days on Market. Homes sold faster last month, with days on market dropping by (-2.7%) over the last year to 72 days.
- The Number of Homes for Sale. There were 2,998 homes for sale last month, a slight increase over last month and a (-11.9%) decline over December of last year. The inventory constraints are likely to continue as we see strong buying activity and a trend towards more people moving to the desert full-time.
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 3.75% and the FHA 30-year fixed rate stands at 3.5%. If you’re financing a larger amount, the Jumbo 30-year fixed-rate is still attractive at 3.625% and the Jumbo 5-year ARM is 3.25%.
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City Standouts! What’s Up and Who’s Down?
As you can see in the chart below, the number of homes sold in December 2019 vs. December 2018 was up in all cities except Indio, which was down (-7.9%). All other cities saw increases in the number of homes sold, with strong gains in Bermuda Dunes (+66.7%), Rancho Mirage (+41.7%), and Palm Desert (+33.3%).
Average selling prices were up across the board, with the largest increases in Bermuda Dunes, up +(59.8%), and Desert Hot Springs, up (+45.6%). Palm Springs and La Quinta were the only cities to see a drop average selling prices last month.
The number of Days on Market was up in about half of the cities and down in the other half. The largest decrease in selling time was in Indio (-13.7%) and La Quinta (-11.9%). Rancho Mirage and Desert Hot Springs experienced the biggest increase in selling times, up (+24.2%) and (+16.9%) respectively.
City Watch - Bermuda Dunes
Number of Homes for Sale = 61 (-16.4%)
Number of Homes Sold = 10 (+66.7%)
Average List Price = $604,403 (+12.5%)
Average Sale Price = $509,400 (+59.8%)
Average Days on Market = 76 (+10.1%)
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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