Your spring Palm Springs 2022 real estate market update.
Today I’m bringing you our Palm Springs spring market update. Prices continue to surge as record-high sales and record-low inventory keep pushing prices higher in every city in Palm Springs. At the end of March, the median price of a detached home was $660,000, which represents a year-over-year gain of 20.2%; last year at this time, it was $616,000. We expect prices to continue to rise over the next two months, and then seasonal factors should take over.
As of April 1, the Valley had 678 units of inventory, and it’s a bit worrisome that there was no seasonal escalation in inventory, which almost always occurs between October and April. We currently only have 0.7 months’ worth of inventory, which is 0.1 less than last year. The only hope for higher inventory is a surge of new listings, but with only 1,244 new listings in March (which is average), we don’t see that happening yet. This historically-low inventory indicates exceedingly low supply and moderate to strong buyer demand, which both contribute to higher prices.
With inflation ticking up, mortgage interest rates have also increased and are hovering at about 5% right now. There are indications this is beginning to affect buyer demand as more and more people are priced out of the market. However, interest rates are still historically favorable, and getting into the market now may be more affordable than waiting since prices are predicted to appreciate at least through the end of the year.
We expect to continue seeing a strong seller’s market throughout 2022, but there might be more competition for sellers and moderation in demand as rates go up. So if you’re considering selling, you’ll have less competition and the best chance of getting your highest price if you list now versus later.
If you have any questions about the value of your home or are interested in buying in the Greater Palm Springs area, we’d love to speak with you about your unique situation. Please feel free to reach out to us via phone, text, or email. We’d be glad to help you. Also, if you have any real estate-related topics or questions we can answer in a future blog, please let us know.