Today I have an update on what our local real estate market is doing.
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Today I’m going to give you an update on what our local real estate market is doing.
Our absorption rate, or months of sales, is 4.4. This number is confirming that we are continuing our trend as a seller’s market. This is the No. 1 indicator that confirms this trend.
The strength of our seller’s market is confirmed also by a days-on-market reading of 70 days, which is three days fewer than less month. This is also the lowest number of days on market since October 2013.
As you can see in the graph displayed in the video at 1:17, we see lower months of supply ratios in all price brackets, which indicates the Valley’s improving housing market is broad-based and strengthening in all price ranges.
As you recall, a balanced market is a six-month absorption rate. That said, while the months of supply for homes priced over $900,000 has dropped from 10.9 to 9.3, this price bracket could still use some improvement, as these numbers are still a little high and indicate a bias toward buyers.
On November 1, Valley housing inventory started, as it does every year, an inevitable rise. The 384-unit increase in one month was relatively small, however, when compared to previous years. That’s a positive, and it’s primarily due to the higher sales volume in the summer months. At 3,625 units, our current inventory is 725 units less than it was last year at this time.
Year over year, the changes in the median home price of the nine major cities show overall strong gains but also a wide variation in the numbers.
For detached homes, year-over-year go from 16.2% in Desert Hot Springs to -4.3% in Indian Wells. We see similar results for attached homes but with an even wider spread in year-over-year changes. Here, they go from a 23% gain for Rancho Mirage—which is great— down to -29% for Desert Hot Springs.
It should be noted that the number of sales in Desert Hot Springs was very low, and some of that decline was due to statistical variations.
Interest rates have continued to remain steady and are hovering at about 4% with minimal fluctuation.
Our appreciation in home pricing, and lower inventory point to a great time to consider selling your home in the greater Palm Springs area. For buyers, while there is more competition and well-priced homes are moving, the lower interest rates create a compelling reason to get into this real estate market.
If you have any questions about the value of your home or are interested in exploring investing in real estate in the greater Palm Springs area, we’d love to be the ones to help you out. Just give us a call, text, email, or check us out on the web at www.WillCookGroup.com.
As always, if you have any real estate-related topics or questions that I can answer, please give me a call or send me an email. I’d be happy to make a video about it.
See you next time!