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Tag: <span>palm springs real estate</span>
The median price for a detached home in the Coachella Valley ended the year at $615,000, which represents a yearly gain of 18.3%. Attached homes ended the year at $403,000, representing an increase of 22.5%.
Breaking down the percentage gains by cities for detached homes and attached homes:
Rancho Mirage 36.6% and 34%
Palm Springs 36% and 30.4%
Indian Wells 34% and 30.6%
Palm Desert 30% and 36.4%
La Quinta 28% and 47.5%
Indio 29.7% and 31.6%
The largest price increase of attached homes was 60.4% in Desert Hot Springs, followed by 42.3% in Bermuda Dunes.
The median number of days in the market throughout the Valley was 26 days. And, there are plenty of properties that sold above asking price within days of listing.
The price increases for sellers are wonderful but it makes if difficult for homebuyers to find homes that meet their wants and needs.
So, who are the buyers?
We still have the retirees and the snow birds, including those in Canada. In the past 2 years there’s been a stunning influx of new homeowners who have fled the dense and depressed cities around the country who want open, spacious and active places like our Valley. The pandemic made many in-office work scenarios impossible, creating a large swath of employees who could work from home. This new work force is younger and many are from California cities. The second-home and investment buyer is still looking out here. Even through various market ups and down, typical for resort communities, real estate investment remains one of the safest places to build wealth.
After a massive jump in home prices since the pandemic, pricing is expected to cool off somewhat, given low inventory and rising mortgage rates. This doesn’t mean there won’t be another increase, it just means home prices may be a bit more modest.
In closing, I’ll again say that if you’re a seller, now is a great time to sell. And buyers, for now, expect to see fewer homes and more interest from other buyers in your selections.
Year-Over-Year Price Increases and Lowest Inventory in History
The median price of Valley detached homes in March was $549,000, which is 27.3% above last year. The attached home median price in March was $345,000, up 15.4% over the last twelve months.
Prices are expected to continue moving higher by following the seasonal pattern of reaching highs in May before pulling back. Seven cities how have median price increases for detached homes over 20%, with two up more than 30%. It should also be noted that five cities have exceeded the historic price highs they made in the year 2006, with two more only fractional percentage points away.
The three-month average of total sales is now averaging 1,129 a month, which is 39% higher than last year. Due to seasonal forces, average could reach 1,200 units, or higher, over the next two months and sales staying in the high range.
Inventory continues to decline and as of this writing, there are 707 units for sale. That compares to 3,034 units a year ago. Continued high sales and lower inventory has again driven the “month of sales” ratio to new historic lows. It is now just 4/5 a month, or just a little over three weeks. A year ago, the ratio was 3.7 months. This lack of supply is causing bidding wars amongst the many home buyers and is the force driving home prices much higher.
If you are considering buying, the time is now. I see the current trend of appreciation continuing for the next few years.
If you are considering selling, now is a great time. Most homes sell within days. Don’t get left behind.
Put me to work for you! Please don’t hesitate to contact me for specifics.
