The latest data you need to know about the Greater Palm Springs market.
What’s happening to the Greater Palm Springs real estate market? We are in a different market than we experienced last year at this time, but it’s not all doom and gloom like some headlines might make you believe. The market has shifted, but it hasn’t crashed. Today I’ll share some critical data about our market to help guide your real estate plans.
First, the median price of a detached home in Coachella Valley as of November 1 is $675,000. That is $5,000 higher than last month and up 12.5% year over year. So far, the price correction many have feared has been relatively mild—some of it may even just be seasonal. It’s important during times like this to follow the data and not the alarming comments people often make.
Secondly, inventory is at 2,048 units, which is 241 units higher than last month and 1,133 more than last year. Some of this increase is seasonal; if the pattern continues, the number of homes for sale will probably reach 2,500 units by February. However, keep in mind that the pre-pandemic norm is over 3,000 units.
The graph at 2:21 in the video above displays the current months of sales ratio by price bracket compared to last year. Ratios in every bracket far exceed last year’s levels. **The recovery of inventory is even, occurring across all price ranges. **
Thirdly, the average selling time/days on market in our area has continued to increase. At the end of October, the median number of days on the market throughout the Valley was 35, which is 10 days more than last year. Experts think we’ve seen the low in this metric and believe it will rapidly increase back to 50 or 60 days, which is historically normal for our area.
In addition, mortgage rates have jumped across all loan types as the Federal Reserve has continued to raise rates. They are now over 7% and approaching 8%, which has priced many buyers out of the market completely. However, lenders are now offering creative products to buy down the interest rate for the first three years, and some sellers and builders are offering to negotiate the cost of the buydown with the buyers, enabling them to purchase and have a lower payment for at least the first three years.
What does all of this mean for buyers and sellers in today’s market? For buyers, interest rates have created a very challenging environment, but some loan products are coming to the market to help mitigate these higher interest rates. For sellers, know that the market hasn’t crashed and homes that are priced well and in great condition still sell. Both buyers and sellers can still find success. Also, there are plenty of cash buyers that are currently looking to secure homes in our area.
With all of these changes, it is more important than ever to work with an experienced agent, and my team and I would love to apply for the job. If you have any questions about your unique situation or would like to purchase or sell in the Greater Palm Springs area, please feel free to call, text, or email us. We look forward to hearing from you.