Here is where our Palm Springs market stands as we make our way into 2020, according to the latest statistics.
Our local real estate market is very strong right now, and I have the latest statistics from the Desert Housing Report to prove it. If you follow along in the video above, I’ve provided four slides from this report.
0:26: “The blue line, called months of sales (right scale), is the ratio of inventory divided by the sales rate and technically measures how long it’s been taking to sell the entire inventory at the current sales rate. With inventory lower than a year ago and with higher sales, the current ratio of 3.7 months is lower than the 4.1 months on January 1 of last year. This low of a ratio usually points to higher prices.
To show you how low this is, in January of 2016 the ratio was 7.3 months. This view is reinforced by another time metric, which is the median number of days it’s been taking to sell a home. As the chart shows, this number is now 50 days, which is the lowest number in the last five years.”
1:22: “We calculate the months of sales ratio in the different price brackets. We take the inventory of homes in each price bracket and divide by the sales rate in that price bracket. The above bar chart plots these results with the blue bars being the current number of months in that price bracket compared to a year ago (orange bars). Except for homes selling in the $900,000 to $1 million price bracket, the monthly sales ratio is lower in all price brackets compared to a year ago. This is especially true in the over $1 million price bracket.”
2:01: “On January 1, inventory in the Valley for both detached and attached homes stood at 2,998. We indicated this number on the chart. Due to seasonal factors, which are evident on the chart, one should only compare inventory in any month with inventory that same month in other years. We’ve therefore indicated January 1 inventory numbers back to 2015. The long-term trend of Valley inventory is declining, which continues to make the overall housing market a seller’s market.”
2:38: “On a city by city basis, median prices continue to rise for detached homes. Eight of the nine cities in the region had positive gains in 2019, while one city—Indian Wells—was down. Rancho Mirage had the highest year-over-year gain of 11.9%, followed by Cathedral City at 9.9%, Indio at 8.1%, and Palm Desert at 6.0%. Palm Springs is now 11.6% above the all-time high made in 2006.
The next closest city to its all-time high is Indio, which is currently 7.9% below its high. As the regional attached home index indicates, attached home prices by city are mixed. Four cities have positive gains while four have negative returns for the year.”
Interest rates, on average, are 1% lower than they were at this time last year. This has reinvigorated buyers to get out there and secure a property so they can lock in low rates. This continuing low-inventory environment also indicates that it’s a great time to sell your Palm Springs area home.
If you have any questions about your home’s value or would like to discuss your unique situation, give me a call or send me a text. My team and I would be happy to answer your questions.