In March, the housing market in Palm Springs experienced a surge in property sales driven by favorable interest rates. With mortgage rates remaining at historic lows, buyers were motivated to capitalize on the attractive financing options available. The increased demand led to a competitive market, with properties selling quickly and often above asking prices.
Real estate experts noted a steady rise in home values, indicating a strong market trend in Palm Springs. Sellers benefited from the high demand, receiving multiple offers for their properties. The combination of low interest rates and rising property values created a favorable environment for both buyers and sellers in the region.
Overall, March showcased a robust housing market in Palm Springs, with active buyer interest, rapid property sales, and a positive outlook for continued growth in the real estate sector.
HOUSING MARKET OVERVIEW
Price Trends:
In February, the median price of a detached home in the Coachella Valley reached $680,500, marking an increase of $20,500 from the previous month and a 1.2% rise year over year. Notably, price changes for detached homes varied across different cities, with Indian Wells seeing a 16.7% year-over-year gain and Cathedral City experiencing a 7.6% decline. The median price of attached homes in the Valley rose to $488,250, reflecting a 12.7% increase compared to the previous year, with several cities showing gains for their average-sized attached homes.
Sales Performance:
Three-month sales in February exceeded last year’s numbers, with 518 units sold per month compared to 474 units a year ago. Although sales this month were 24.3% below normal levels, there was an improvement from the previous month. Most cities, except for Cathedral City, Desert Hot Springs, and Indian Wells, recorded higher three-month sales compared to the previous year, with Coachella and Rancho Mirage leading in percentage increase.
Inventory and Sales Ratios:
As of March 1st, the Valley’s inventory stood at 2,416 units, the highest in nearly four years. Despite this improvement, the inventory remains approximately 1,000 units below pre-pandemic levels for March. The “months of sales” ratio at the end of the month was 3.9 months, one month higher than the previous year, aligning with seasonal trends.
Days on Market:
The median number of “days on the market” in the Coachella Valley at the end of February was 44 days, slightly shorter than the previous year. City-wise, Coachella, Desert Hot Springs, and Indian Wells had the shortest selling times for detached homes. In the attached market, Indio, La Quinta, and Desert Hot Springs had the quickest average selling times.
Price Discounts/Premiums:
In February, 13.5% of homes in the Coachella Valley sold over the list price, a marginal increase from the previous year. Every city is currently selling detached homes at an average discount, ranging from 0.4% in Coachella to 4.4% in Bermuda Dunes. Average discounts for attached homes vary across cities, with Cathedral City at 1.9% and Bermuda Dunes at 6.1%.
