As COVID restrictions begin to ease and more people are getting their vaccinations, we continue to see strong home sales in the Palm Springs area. Today's buyers include younger workers who are seeing permanent changes in their work-from-home status as well as investors looking to diversify their portfolios. Add these new buyers to our consistent pool of retirement home and vacation home buyers, and this has provided a strength to our market that we have not seen in many years. People are flocking to The Coachella Valley for its great location, blue-sunny skies, palm trees, and most of all, great home values.
With so much competition, multiple offers and sales prices that are well above asking price is the new normal. It's rare to see good homes on the market for longer than a week. Buyers need to be quick and ready to pay full price or even more for the right property. And buyers financing their purchases are having a difficult time competing with cash buyers.
Recent lending changes are, however, allowing our buyers who require financing to better compete with our cash buyers. Many lenders are now able to complete underwriting on a buyer’s loan prior to their making an offer. This reduces risk to a seller as it’s during the underwriting process that conditions often arise that complicate getting final loan approval.
The number of homes sold last month increased by +44.9% and the number of pending sales is up +154.5% when compared to the same month a year ago.
There were 727 homes available for sale last month, compared to the 3,047 homes that were available for sale in March 2020 … a (-76.1%) decrease in available housing over that period! Low inventory continues to be a challenge for our buyers and inventory levels are remaining consistent with what we've seen over the last 6 months.
The high demand and low inventory have been major factors driving home price increases, with the median sale price for detached homes (single-family) up (+27.3%) over the same month last year, while the median price for attached homes (condos) is up (+15.3%).
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. The average home sale price last month in the Palm Springs area was $689,506 an Increase of (+32.4%) over the same month last year.
- Number of Days on Market. Days on market have decreased (-44.9%), homes are selling on average of 54 days.
- The Number of Homes for Sale. There were 727 homes for sale last month, a (-76.1%) decline over February of last year. Inventory hits 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 staying steady at 3.250% while the FHA fixed-rate are at 2.75% and VA loans are at 2.75%.
City Standouts! What’s Up and Who’s Down?
You can really see the strength in our market when you look at the numbers for each of the major cities in the area. The Number of Homes Sold in March 2021 vs. March 2020 are up in all cities led by Indian Wells (+113.8%), Rancho Mirage (+93.5%) and Bermuda Dunes (+80%).
When looking at the Average Selling Prices, Bermuda Dunes stood out with a strong (+49.5%) increase over last March solds, followed by Indian Wells (+37.7%) and La Quinta (+36.8%). Every city in the Coachella Valley experienced an increase in average sold price last month.
The Number of Days on Market decreased for all cities in the Coachella Valley except for Coachella. Homes sold fastest last month in Indio (-45.1%), Cathedral City (-40.3%), and La Quints (-38.5%).
City Watch - Indio
Number of Homes for Sale = 250 (-47%)
Number of Homes Sold = 186 (+43.1%)
Average List Price = $489,004 (+16.9%)
Average Sale Price = $444,603 (+11.6%)
Average Days on Market = 45 (-45.1%)
If you're considering putting your home on the market, let us help you get it SOLD! We have great strategies for maximizing your home's exposure and getting the best price and this could be the best time to get your home sold.
If you'd like a detailed market report for a specific city, just 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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