Our market has gotten off to an incredible start in 2019 here in the Palm Springs area, and the opportunity for home sellers to sell quickly and for top dollar hasn’t passed yet, but it may soon.
Let’s look at a few statistics and see how well our market has been performing lately.
For single-family homes, the median price in March was $415,000—a 5.9% increase compared to March 2018. The median value of single-family homes in all nine major cities in the Coachella Valley made positive year-over-year gains, and these gains range from a high of 25.7% in Indian Wells to 1.8% in Palm Springs.
For condos, the median price in March was $290,000—a 7.8% increase compared to March 2018. We expect the condo market to remain strong throughout the rest of the year as it plays catchup with the strong performance we’ve seen from the single-family market over the last several years.
So don’t let the recent talk of a market slowdown scare you off from seizing the moment. Experts agree that selling this year will yield far better results than waiting until the years to come, and there are three reasons why:
1. There’s been a surge of buyer demand from millennials. The largest segment of millennials will soon be entering the peak home buying age, which will have a massive impact on buyer demand across the nation. On a local scale, this should increase demand for starter, primary, and second homes, which will in turn push those sellers into the move-up market. Right now, local data shows that homes priced over $800,000 are seeing a decline in their list-to-sale price ratios.
2. Interest rates are still at historic lows. Nationwide, rates are hovering between 4% and 4.5%, which is still incredible compared to what buyers could get in the past. Brexit, trade talks between China, and the possibility of inflation have all created some volatility in interest rates, though, and we must remember that interest rates follow the 10-year treasury yield—as that goes up, so will interest rates. Because of this, buyers are eager to find a home and lock in a low rate while they still can, which gives sellers tremendous leverage.
3. Housing supply is down. After hearing rumors of a supposed market slowdown, many would-be sellers chose to put their real estate goals on hold. The decline in home sales and the large price recovery we’ve seen over the last five years has created a general worry that inventory would rise as more and more homeowners put their homes on the market to take advantage of high prices. So far, though, this concern is unfounded. Inventory in the Coachella Valley hasn’t risen. As of April 1, there were 3,772 homes on the market, which is the lowest point it’s been in the last five years.
For many sellers savvy enough to see the big picture, this means one thing: less competition. It’s a simple matter of supply and demand—the fewer sellers there are in the market, the better your chances are to sell quickly and for top dollar.
So, if you think you’re ready to put your home on the market and taking advantage of these conditions, the first step you need to take is to find out what your home is worth, which you can do by clicking on our very own “Home Valuation” button on our website. I would also be happy to give you an in-home consultation if you want an even better idea of what you can sell for, so just give me a call or send me an email and we can schedule an appointment.
As always, if you have any other questions about our market or you have any other real estate needs, feel free to reach out to me. I look forward to hearing from you.