The Palm Springs area real estate market remains strong as we head into the summer selling season. While inventory is still slightly below this time last year, buyer activity is still strong and homes are selling quicker than they did this time a year ago. While fewer homes are selling due to fewer homes available for sale, homes are selling quicker and for more money, making it a seller’s market for well-priced homes.
Trendvision’s® most recent year-over-year, April 2019 vs. April 2018 Report shows (-7.5%) fewer homes sold last month and inventory remains low thought the Palm Springs area. The number of homes sold was down (-10.0%) in the under $500K price bracket, down (-6.1%)in the $500-$999,999 price range, and up (+11.0%) for homes selling for over $1M.
Inventory constraints eased slightly again this month in both the under $500K and $500-$999,999 price ranges, with inventory increases of (+1.3%) and (+2.3%) respectively. Inventory dropped (-4.1%) in the $1M+ price range over the same period last year.
Average selling prices rose (+9.0%) for homes priced $1M+ while remaining essentially flat in the other price bands.
Interest rates are still very attractive and remain well below 5%, which is helping the market. 30-year fixed rate mortgages stayed constant at 4.375% and the FHA 30-year fixed rate is 4.250%. If you’re financing a larger amount, the Jumbo 30-year fixed rates are 4.25% and adjustable Jumbo loans can be had for as low as 3.625%.
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 rose overall in the Palm Springs area by (+8.1%) over the same month last year. The biggest gains were for homes priced $1M+ with a robust (+9.0%) increase.
- Number of Days on Market dropped (-5.8%) compared to April of last year, with the biggest change in the $500,000-$999,999 price range where Days on Market dropped (-16.0%) over last year. Homes in the other price bands were selling quicker as well, with Days on Market down (-3.7%) for homes priced $1M+ and down (-2.5%) for homes priced under $500,000.
- The Number of Homes for Sale. The number of homes for sale showed a slight uptick last month to 3,673, a (+0.6%) increase over the same month last year. We are entering our typical seasonal decline in listings, but so far the decline is less severe than it was last year at this time.
The trend through the first part of this year continues… it’s a seller’s market in most areas, and homes that are priced right are selling within 2-3 months, with many receiving multiple offers.
City Standouts! What’s Up and Who’s Down?
Continuing our trend over the last six months, the Number of Homes Sold in April 2019 vs. April 2018 was down (-7.5%) across the Palm Springs area. The biggest percentage drop in sales was found in Coachella down (-15.8%), Desert Hot Springs down (-13.6%) and Palm Desert down (-12.8%). Only two cities saw an increase in sales; Bermuda Dunes and Cathedral City had sales increases of (+5.9%) and (+3.9%) respectively.
Last month about 1/2 of the cities experienced a rise in average selling prices, with the biggest increases in La Quinta (+37.6%) and Indian Wells (+36.2%). The biggest drop in sale prices took place in Coachella, with a (-14.3%) drop in Sales. Palm Springs,, Rancho Mirage and Indio experienced price drops in the single digits, while sales prices in Cathedral City remained essentially flat.
City Watch - Rancho Mirage
Number of Homes for Sale = 469 - Down (+9.1%)
Number of Homes Sold = 103 - Down (-7.2%)
Average List Price = $1.17M - Down (-3.8%)
Average Sale Price = $706,000 - Down (-5.5%)
Average Sale Price Per Sq. Ft. = $263 - Up (+2.3%)
Average Days on Market = 94 - Down (-3.1%)
The Number of Days on Market was down in all cities, with the exception of Desert Hot Springs, up (+14.1%) and La Quinta up (+10.3%).
Current trends have us in a seller’s market in most areas, with homes selling quickly and desirable homes priced right receiving multiple offers.
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