Home Sales Down, Inventory Woes Ease, Sale Prices Continue Their Rise!
December is often the slowest month for home sales in the Palm Springs area, and we’re starting to see the typical slight downturn in sales that comes as many of our buyers turn their focus to family for the holidays.
Inventory constraints showed improvement for the third month in a row, with the number of homes available for sale (-8.6%) below November of last year … much lower the the (-25.0%) we had seen over the summer. The number of homes sold is down slightly (-9.1%), not unexpected for this time of year, while average selling prices rose nearly (+11.5%).
Trendvision’s® most recent year-over-year, November 2018 vs. November 2017 Report show that the largest increase in home sales last month once again took place with mid-range homes priced $500,000 to $999,999, with a (+24.8%) increase.
Home sales in the Under $499,999 price point dropped by (-16.8%) while the $1M+ price band saw a (-8.6%) drop in sales, but average selling prices in both of these categories rose by (+7.1%) and (+11.9%) respectively.
Typical seasonal changes in sales are evident. But Selling Prices Remain 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 rose overall in the Palm Springs area by (+11.5%) over the same month last year. The $1M+ price range saw the biggest increase, (+11.9%) over November of last year, while the under $500,000 price range saw average selling prices rise (+7.1%). There was a slight drop (-1.5%) in average selling prices for homes priced $500,000 - $999,999.
- Number of Days on Market dropped (-15.7%) overall compared to November of last year, with the biggest change in the $1M+ price range, with a (-42.5%) reduction in Days on Market over the same period last year. Homes priced to $499,999 sold faster with Days on Market dropping (-15.7%) and homes priced $500,000 - $999,999 saw Days on Market drop by (-17.6%). Overall homes were selling in an average of 75 days.
- The Number of Homes for Sale. With inventory recently at a 5-year low, we’re seeing more homes come on the market, but inventory was still (-8.6%) lower than November 2017. For homes priced up to $500,000 - $999,999, inventory was about the same as this time last year. Inventory was down (-5.2%) for homes priced $1M and above and home priced under $500,000 saw inventory levels (-13.5%) below this month a year ago.
While inventory woes have eased somewhat, as we have seen all year, buyers have fewer homes to choose from, and sellers are finding they can command higher prices for their homes if they are in good condition and properly priced.
City Standouts! What’s Up and Who’s Down?
For the most part, as indicated above, the Number of Homes Sold in November 2018 vs. November 2017 were down in all but three of the cities, with an increase in the number of home sold in: Bermuda Dunes up (+60.0%), La Quinta up (+7.1%), Indio up (+3.0%). The largest percentage decline in home sales was in Coachella (-57.1%) followed by Indian Wells with a (-23.8%) decline.
When looking at Average Sold Price, Indian wells saw the largest percentage increase with a (+75.8%) rise in average selling prices, with Indio and La Quinta following behind with (+19.7%) and (+17.0%) increases respectively. The largest drop in average selling prices last month, for the 2nd month in a row, was Rancho Mirage with a (-19.8%) drop.
The Number of Days on Market was down in all but two cities, with homes selling faster this month in … Desert Hot Springs (-33.0%), Cathedral City (-16.9%), Palm Desert (-21.2%), Rancho Mirage (-19.3%), Indian Wells (-42.6%), La Quinta (-9.0%), Indio (-7.2%), Coachella (-52.5%). Bermuda Dunes and Palm Springs saw increases in time to sell of (+64.2%) and (+1.1%) respectively.
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