While not as "red hot" as it was the first half of the year, the real estate market continues to be a strong one for sellers. Inventory had been rising slightly each week recently but now has dropped back down to near-record lows.
The number of homes available for sale was down 55.6% compared to last October and down 70% compared to three years ago.
Many buyers have decided to "take a break," and that, combined with low inventory, has resulted in a 30.5% drop in the number of homes sold compared to October of last year.
So while there are fewer buyers and fewer closings, and the rapid price increases from the first 1/2 of the year have slowed a bit, good homes priced right are selling quickly at or above the asking price.
When we look at what's happening in the market month to month, we find that the number of homes for sale is up +3.6% in October compared to September.
The number of homes sold this past month rose 5.1% compared to September, and the average selling price in October is up +2.2% to $705,000, compared to $690,000 in September.
While prices continue to rise, the rapid increases we experienced during the 1st half of the year are settling down a bit. We had seen prices up 33% over the year prior. The average sale price for October was up 21% over the same month last year.
Let's look at the key market indicators that show how our market is performing compared to this time last year; Average Sold Price, Number of Days on Market, and Number of Homes for Sale.
- Average Home Sale Prices. Last month, the average home sale price in the Palm Springs area was $714,141, an Increase of (+22.1%) over the same month the previous year.
- Number of Days on Market. Days on market have decreased (-44.8%), homes are selling on average of 37 days.
- The Number of Homes for Sale. There were 891 homes for sale last month; a (-55.6%) decline over October of last year. Inventory is still at an all-time low. If trends continue, we'll see fewer homes on the market over the coming months.
Interest rates are still at an all-time low and will continue to drive new purchases and refinance activity. Conforming 30-year fixed-rate mortgages are at 3.250%, while the FHA fixed-rate are at 2.990% and VA loans are at 2.990%.
City Standouts! What’s Up and Who’s Down?
You can get a better view of the trends in our market when you look at the numbers for each major city in the area.
The number of homes sold in October 2021 vs. October 2020 is down in all cities across the Coachella Valley, with the most significant percentage drop in sales in Indian Wells, with 51.9% fewer homes sold. La Quinta -39.7%, Rancho Mirage -34.9%, and Indio -32.7% also saw major declines in the number of homes sold last month.
When looking at Average Selling Price, Indian Wells again topped all other cities with an average selling price of $1,693,640, a +57.7.% increase over last October. Palm Desert saw a +45.6% increase in the average sale price, and Indio was right behind with a +41.7% increase. Every city in the Coachella Valley experienced an increase in average selling price except for Bermuda Dunes, down -4%.
Homes continue to sell quickly, and The number of Days on Market decreased dramatically for all cities in the Coachella Valley Homes sold fastest in Palm Springs, in an average of 26 days. Homes took the longest to sell in Desert Hot Springs, an average of 46 days.
City Watch - Palm Desert
Number of Homes for Sale = 165 (-66%)
Number of Homes Sold = 182 (-28.9%)
Average List Price = $891,730 (+21.9%)
Average Sale Price = $679,338 (+45.6%)
Average Days on Market = 32 (-52.9%)
If you're considering putting your home on the market, let us help you get it SOLD! We see multiple offers for properly priced homes, and with fewer homes on the market, this could be the best time to get your home sold.
If you'd like a detailed market report for a specific city, email us and let us know which city reports you'd like to receive.
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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