Market Update for the Palm Springs Area Market

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

With 5.3 months of sales, our overall market has shifted more towards a neutral position with the bias towards the sellers. If we look at months of sales, or absorption rate, by price range, we see that inventory is comparable to last year’s in most price brackets except for in the $700,000 and above price point. In that price range, months of sales has increased somewhat.  Home prices below $300,000 have the lowest absorption rate at four months of sales, the same as it was last year.

“

Home prices below $300,000 have the lowest absorption rate.

”

As expected because of seasonal patterns, Coachella Valley inventory continued to decline through August, but at a higher than normal rate. As of September 1, 2016, our inventory stood at 3,730 units. This is 111 units higher than last year at the same time. On March 1, inventory was 6,000 units. This was 1,000 more than March 1 in the year before. This caused some concern at the time, but the numbers have now fallen to a number almost equal to September 1 of last year.

City median prices at the end of August still show strong gains, with seven cities having a positive year over year gain and only two, Cathedral City and Palm Desert, going negative. Desert Hot Springs had the highest change in pricing at an increase of 17.6%. This brings its price gain off of the 2011 lows to 122.9%, the highest of all nine cities. It should also be noted that a Palm Springs median price of $548,540 is only 8.6% away from its all-time high.

Interest rates have been hovering around 3.5%, despite threats of an increase from the Federal Reserve. It is a general consensus that over the next six months, interest rates will increase. However, they should remain below 4%.

Coupled with our appreciation in home pricing in the greater Palm Springs area and the threat of increases in interest rates, which is motivating buyers, it’s a great time to consider selling your home in the greater Palm Springs area.

If you have any other real-estate related topics or questions you’d like answered, please send me an email, give me a call, or send a text. I would be happy to answer your questions and may make a video about it.