Discover the factors behind the slowdown in Palm Springs home sales.
What’s going on with home sales in the Greater Palm Springs area? Have you noticed that home sales seem to be a bit sluggish in our area right now? We’re about 24% below normal in terms of the number of homes selling at this time of year. Let’s discuss four factors contributing to this slowdown.
1. Affordability: Interest rates are high, around 7%, affecting affordability and resulting in fewer buyers. Despite this, our median price remains around $700,000, compared to $400,000 in 2020. There may be some relief if the Federal Reserve cuts rates next month, but if not, we might see downward pressure on pricing due to decreased buyer demand.
2. Higher Inventory: We have more homes on the market, giving buyers more choices. As buyers take their time and submit lower offers, we’re seeing more price reductions. Last month’s data shows 2,464 homes on the market in the Coachella Valley, compared to our normal 3,500. More homes with fewer buyers could lead to lower prices.
“Presidential election years bring uncertainty, affecting the housing market and mortgage rates.”
3. Election Year: Presidential election years bring uncertainty, affecting the housing market and mortgage rates. People often delay major purchases until after the election. I’ve seen this pattern in every election cycle during my 22-year career. People freeze, unsure of the election’s outcome and its impact on their finances.
4. Record Heat: The record heat in the Coachella Valley may be keeping some buyers away. This summer, Palm Springs has set multiple record temperatures, including a streak of 22 days at 110 degrees. If buyers are looking at homes in this heat, you know they’re serious.
If you have any other questions related to real estate sales in our area or any other real estate-related topics, please feel free to reach out to me. Give me a call, a text, or an email.
