Latest Trends in the Palm Springs Area Real Estate Market

Buying a home? Click here to perform a full home search

Selling a home? Click here for a FREE Home Price Evaluation 

Today, we’re going to talk about what’s going on in the greater Palm Springs area real estate market.

Overall, our market has shifted to a buyer’s market, with 8.4 months of sales. While this shift has occurred in all nine cities, some price points have more inventory than others. For example, homes over $900,000 have the highest absorption rate with 24.2 months of inventory. That means if no other homes came on the market, it would take over two years to sell everything that’s currently on the market. This is a significant shift compared to last year, which stood at 9.8 months of sales.

Today, homes under $300,000 have 5.8 months of inventory, compared to 5.1 months of inventory last year. As of January 31st, our entire inventory stood at 5,801 units, which is 826 units higher than this time last year.

The seasonal nature of our market is such that January and February typically have the highest levels of inventory. However, inventory has increased recently due to a lot of Canadians taking advantage of rising home appreciation and a favorable U.S. currency exchange rate. When these Canadians sell their properties, not only are they cashing in on their home appreciation, they’re also getting a 30% to 35% bump when exchanging U.S. dollars for Canadian money.  Since this puts more inventory on the market, there is some downward pressure on pricing.

Our current median price per square foot is $177, which is a slight decline of $2.80 from last month. As of the end of January, six of the nine cities saw positive year-over-year appreciation, while Palm Desert, La Quinta, and Indian Wells saw home values decline.

Interest rates are still hovering around 4% despite the Federal Reserve increasing rates last December. This, combined with our increased inventory levels, makes now a great time to buy a home in the Palm Springs area. If you have any questions, give us a call or send us an email. We would be happy to help you!