What’s the latest news from our Palm Springs market? Let’s see what the numbers have to say.
First, we’ll look at the months of sales ratio, which gives us our absorption rate. On July 1 of this year, this ratio was 3.8 months. That’s 0.2 months more than where we were at a year ago—an increase caused primarily by a decline in sales. In the Valley, any ratio under four months is near historic low numbers.
As you can see in the graph at the 0:26 mark in the video above, this ratio is very seasonal, but it’s clear that where it’s at now is a positive indicator. The average days on market, meanwhile, is 66 days, which is almost identical to where it was last year.
When we look at the months of sales ratio in different price brackets at 1:02 in the video, we see that it’s higher for homes priced under $600,000 than it was a year ago. It’s only when we get to homes over $700,000 that we begin to see lower numbers. The months of sales ratio for homes over $1 million is 10 months, which is effectively equal to what it was a year ago.
Inventory in Coachella Valley remains well contained. On July 1, we had 3,010 available units, which is 28 fewer than what we had last year. Like the months of sales ratio, inventory follows a seasonal pattern, reaching its peak usually in March and then its low point in September or October. If we look at the July 1 readings all the way back to 2014, it’s clear that current inventory levels are the lowest they’ve been in the last five years.
On a city-by-city basis, we see strong 12-month price increases for detached homes in eight of the nine regional cities. Indian Wells and Laquinta both showed double-digit gains. Palm Springs, meanwhile, ended June with a median detached home price of $669,500, which is 11.6% above the all-time high reached during 2007. Palm Desert’s median detached home price declined 8%.
In the attached market, five cities have positive year-over-year gains, while three—Rancho Mirage, Indio, and Desert Hot Springs, have negative returns.
Interest rates have dipped a little in the past month and volatility continues to be the norm. Some of this dipping has caused a lot of refinancing activity, and it has motivated buyers to lock in a low rate by securing a property.
With interest rates and inventory this low, now is a great time to sell your Palm Springs area home.
If you have any more questions about our market, you’re curious what your home is worth, or you’d like to know what’s available out there, don’t hesitate to give me a call or send me an email. I’d love to help you.