Planning to invest in Palm springs? Get the inside scoop on Palm Springs’ summer real estate trends.
As we move through the summer months, the Greater Palm Springs real estate market has seen notable shifts, presenting both challenges and opportunities for buyers and sellers alike. The latest data indicates a cooling trend in the market, with sales numbers dipping compared to last year. For anyone invested in or considering a move in this market, understanding these trends is crucial.
This summer, sales in Palm Springs have slowed down, with the three-month average for home sales now sitting at 642 units, a decrease from 712 units during the same period last year. Bermuda Dunes stands out as the only city in the region to surpass last year’s sales figures. Overall, the market has seen a decline in activity, with sales dropping 27.2% below historical norms.
This cooling trend has been consistent over the past four months, following an all-time high just three months ago. The median price of detached single-family homes has slightly declined to $669,000 as of July, only $4,000 higher than last year. This marginal change in price reflects the broader seasonal pattern, where prices typically peak in May or June before leveling off in the summer.
Inventory levels also tell a story of gradual improvement, though they remain below pre-pandemic norms. As of August 1, the Valley’s inventory stood at 2,266 units, down by 199 units from the previous month but still 496 units higher than this time last year. The seasonal pattern suggests that inventory will continue to decline for another month before beginning its usual increase in September. Despite this improvement, current inventory levels are still about 1,000 units below what was considered normal before the pandemic.
When breaking down the data by city, there’s a clear variation in year-over-year price changes. For detached single-family homes, Coachella saw a significant gain of 27.8%, while Palm Springs experienced a notable decline of 10%. In the attached or condo home market, Bermuda Dunes led with an 18% increase, while Palm Springs saw a decrease of 5.4%. These fluctuations highlight the diverse nature of the Greater Palm Springs real estate market.
For buyers, the market presents a mixed bag. Mortgage rates remain stubbornly high, but there’s hope on the horizon with a possible rate cut expected as early as September. A reduction in rates could enhance affordability but also lead to increased competition as more buyers re-enter the market. For sellers, the key to success lies in pricing homes competitively in line with the current market. With inventory gradually increasing, it’s important to attract the limited pool of buyers by ensuring your property is well-maintained and move-in ready. Today’s buyers are less inclined to take on substantial renovation projects, favoring homes that require minimal work.
Navigating these market conditions requires the expertise of a seasoned real estate agent. If you’re considering buying or selling in the Greater Palm Springs area, don’t hesitate to reach out. I’m here to provide personalized advice and help you make informed decisions in this dynamic market. If you have any real estate-related questions or need further insights, feel free to call me or text me.
