If three months in a row makes a trend, we have a clear new trend in our local housing market. The number of homes sold fell for the third month in a row in the Palm Springs area, and inventory is now at a 10-year low. While there are fewer homes on the market, buyer activity remains strong and that’s driving home prices up.
Available inventory is down (-7.3%) over the same month a year ago, with 298 fewer homes available for sale. With fewer homes available for sale, we’re seeing a slowdown in actual home sales, with the number of homes sold down (-17.2%) over the prior January.
As a result, the average selling price rose (+5.7%) to $504,000 and the average selling price per square foot rose (+7.4%) to $247.
Homes continue to sell quickly, with Days on Market down (-11.4%) to 78 days.
Trendvision’s® most recent year-over-year, January 2019 vs. January 2018 Report shows fewer homes sold in all price bands, with the biggest drop in the under $500,000 price band, with a (-19.0%) drop in number of homes sold.
Home sales in the $500,000-$999,999 price point dropped again this month, with (-12.9%) fewer homes selling, while the $1M+ price band saw sales fall off by (-10.2%).
Average selling prices rose in all price categories, with the largest percentage increase in the under $500,000 category, with a (+4.5%) increase in average selling price. The $1M+ and $500,000-$999,999 price bands saw smaller gains, with average selling prices rising by (+2.9%) and (+0.6%) respectively.
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 rose overall in the Palm Springs area by (+5.7%) over the same month last year. The biggest gains were at the low end and the high end of the market, with sale prices of homes priced $500,000-$999,999 remaining essentially flat. Interestingly, after relatively slow growth in home pricing over the last few years, appreciation of attached homes (condos) has outpaced detached homes (single family homes) over the last few months.
- Number of Days on Market dropped (-6.9%) compared to January of last year, with the biggest change in the $1M+ price range where Days on Market rose (+51.2%) over last year. Homes in the other price bands were selling quicker than a year ago with Days on Market down (-15.8%) for homes priced $500,000-$999,999 and down (-9.4%) for homes priced under $500,000.
- The Number of Homes for Sale. While we are seeing the typical seasonal uptick in new listings, our inventory is still below what is normal for this time of year. Inventory is down (-7.3%) over January of last year and strong buyer activity combined with inventory shortages will likely drive an ongoing shortage of desirable housing in the are for the foreseeable future.
Current trends have us in a seller’s market in most areas, with homes selling quickly and desirable homes priced right receiving multiple offers.
City Standouts! What’s Up and Who’s Down?
For the third month in a row, the Number of Homes Sold in January 2019 vs. January 2018 was down across the Palm Springs area. Once again, the number of homes sold was down all cities except for Coachella, which saw a (+14.3%) increase in home sales. The largest percentage drop in home sales was in Cathedral City, down (-44.1%), Bermuda Dunes down (-31.2%), and Rancho Mirage down (-28.8%).
When looking at Average Selling Price, most cities experienced a rise in average selling prices, with the exceptions being Indian Wells, down (-17.6%), Bermuda Dunes, down (-12.6%), and Palm Springs, down (-0.9%).
The Number of Days on Market was down in about half of our cities, with homes selling fastest this month in … Cathedral City (-22.4%), Palm Springs (-18.7%), and Palm Desert (-18.3%).
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?