There is a clear trend in our local real estate market over the last five months… and its good news for sellers while providing some challenges for our buyers.
Trendvision’s® most recent year-over-year, March 2019 vs. March 2018 Report shows (-6.7%) fewer homes sold last month and inventory remains low throughout the Palm Springs area. The number of homes sold was down (-10.8%) in the under $500K price bracket, essentially flat in the $500-$999,999 price range, and up a healthy (+15.7%) for homes selling for over $1M.
Inventory constraints eased slightly in the $500-$999,999 price range with a slight (+2.0%) increase in homes available for sale. Inventory for the under $500K price range was nearly unchanged, and there were (-5.7%) fewer homes available for sale priced $1M+.
Average selling prices rose (+9.0%) for homes priced under $500K, and sale prices rose (+9.6%) for homes priced $1M+. Selling prices remained flat for homes in the $500-$999,999 price range.
Interest rates are still very attractive and remain well below 5%, which is helping the market. You can get a 30-year fixed rate mortgage at 4.375% and the FHA 30-year fixed rate is 4.125%. 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 3.75%.
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 (+13.2%) over the same month last year. The biggest gains were for homes priced under $500K (+9.0%) and homes priced $1M+ selling for (+9.7%) more.
- Number of Days on Market dropped (-2.3%) compared to March of last year, with the biggest change in the $1M+ price range where Days on Market dropped (-8.1%) over last year. Homes in the other price bands were selling quicker than a year ago as well, with Days on Market down (-6.2%) for homes priced $500,000-$999,999 and down (-2.5%) for homes priced under $500,000.
- The Number of Homes for Sale. The number of homes for sale peaked in February at 3,850, with a slight decline last month to 3,742. Well keep an eye on this number next month, as we may have started our typical seasonal decline in available inventory. Inventory last month was down down slightly (-0.8%) over March of last year.
I’ve stated this for the last 5 months, and it’s still true today … 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?
Continuing our trend over the last five months, the Number of Homes Sold in March 2019 vs. March 2018 was down across the Palm Springs area. The biggest percentage drop in sales were found in Bermuda Dunes down (-52.2%), Cathedral City down (-21.3%) and La Quinta down (-19.1%). Sales remained essential flat in Coachella while Indian Wells and Indio saw sales increased (+11.8%) and (+7.8%) respectively.
Most cities experienced a rise in average selling prices, with the exceptions being Rancho Mirage, down (-17.4%), La Quinta, down (-10.7%), and Coachella, down (-6.7%).
City Watch - Palm Desert
Number of Homes for Sale = 779 - Down (+3.2%)
Number of Homes Sold = 213 - Down (-8.2%)
Average List Price = $601,000 - Down (-4.0%)
Average Sale Price = $460,000 - Up (+17.3%)
Average Sale Price Per Sq. Ft. = $240 - Up (+13.2%)
Average Days on Market = 82 - Down (-4.7%)
The Number of Days on Market was down in all cities, with the exception of Indio, up (+20.3%) and Coachella up (+100%).
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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