An update on the current dynamics in the Palm Springs market.
There are some interesting trends shaping the winter market landscape in Coachella Valley. Let’s dive into the key insights and numbers that define the current state of the market.
The winter real estate market is off to a promising start, with the three-month average sales rate showing a significant increase compared to the same period last year. In January alone, there were 510 units sold, marking a noteworthy improvement from the 436 units sold last year.
Examining the data, Rancho Mirage emerges as the city with the largest percentage increase in sales, closely followed by Coachella and La Quinta. This positive momentum is a welcome change, considering that sales in January are now only 28.6% below the normal rate, showing improvement from the previous month.
The seasonally adjusted sales curve reveals a trajectory that dipped to 34.7% below normal by January 2023 but has been gradually improving since then. Lower inflation and mortgage rates are anticipated to contribute to a return to normalcy later in the year.
In terms of pricing, the median price of a detached home in the Coachella Valley in January was $660,000, reflecting a 1.8% decrease year over year. Although prices typically begin to rise in January, the current seasonal pattern suggests a potential shift in 2024. However, with rising inventory and relatively low sales, the balance between supply and demand is slowly favoring buyers.
Inventory levels have seen a notable increase, reaching the highest point since 2020 on February 1st at 2309 units. While this is still a thousand units below the normal range for this time of year, it signals a distinct improvement. The expectation is that the seasonal increase in inventory will continue, possibly reaching 2500 units by March.
Examining the two tables displaying price and price per square foot for average-sized homes in each Coachella Valley city, there is a wide variance in gains for detached homes. Indian Wells saw a 9.9% gain, while Bermuda Dunes experienced an 11% decline. Conversely, several cities witnessed gains for their average-sized attached or condo homes, including Indian Wells, Indio, Palm Springs, and Rancho Mirage.
The median selling time in the region remains fairly stable. At the beginning of January, homes spent an average of 40 days on the market, mirroring the figures from the previous year. This stability is expected to persist for at least the next six months.
For buyers, the current market presents an opportunity with lower mortgage rates. However, increased competition is anticipated as more buyers take advantage of these favorable rates. Sellers, on the other hand, still enjoy demand for well-maintained, competitively priced homes. Nevertheless, with rising inventory and extended days on the market, buyers now have more negotiating power.
In this dynamic market, it’s crucial to partner with an experienced agent. If you’re considering buying or selling, now is the time to reach out. Whether by call, text, or email, our team is ready to discuss your unique situation and guide you through this evolving real estate landscape. Your dream home or successful sale may be just a conversation away!