Here’s what you need to know about what’s going on in our local market.
For today’s market update, the first metric I’d like to discuss is our months-of-sales ratio, which gives us our absorption rate. On October 1, the months-of-sales ratio (the level of inventory divided by the average sales rate over 12 months) was 3.4 months.
Like inventory, the months-of-sales ratio is very seasonal, and ratios should only be compared to other ratios in the same month of previous years. This latest ratio is almost exactly equal to October 1 of 2018, and the ratios for both this and last year are the lowest they’ve been over the last 10 years!
The median days on market for the region is 65 days, meaning that on average, homes take that many days to sell. This is effectively equal to last year’s 66 days. The chart you’ll see in the video above at 1:04 shows that our days on market has been hovering around 70 days for the last three years.
At the current sales rate, the months-of-sales ratio for homes priced under $200,000 is 1.9 months, while the ratio for million-dollar homes is 7.8 months. Between those extremes, we see a very normal increase in the months-of-sales ratio with respect to price.
Overall, this metric shows the housing market to be in good condition throughout all price ranges. The Coachella Valley inventory continues to remain historically low; on October 1 of this year, there were 2,736 units for sale, which is the lowest level of inventory over the last 10 years.
While low inventory makes it difficult for buyers to find homes, the low supply is a very positive indicator for higher home prices. Interest rates have actually dipped a little again this past month—however, volatility continues to be the norm. Our continued low rates have moved buyers off the fence and well-priced homes are getting snatched up quickly. Now is a great time to consider selling your Greater Palm Springs area home and getting the highest possible price for it.
If you have any questions about the value of your home or if we can assist you in finding your own slice of the California desert, we’d love to talk to you. Simply reach out to us, and we’ll discuss the best path for you given your unique circumstances.