Palm Springs Market Shift: Is Now the Time to Buy in Palm Springs? The Palm Springs housing market is experiencing a marked slowdown, with a rise in available homes, declining prices, and reduced sales volume. This trend aligns with the broader cooling seen across the Coachella Valley region.
The August 2024 Desert Housing Report highlights that the median price of detached homes in Palm Springs has dropped by 6.1% from the previous year, now at $1,198,338. In contrast, attached homes have slightly increased, with the median price rising by 2.5% to $453,900.
Sales activity has also slowed in Palm Springs. An average of 103 units are sold each month, down from 131 units a year ago, leading to a 28% decline in total dollar sales.
Palm Springs Market Shift – Housing Inventory
The inventory of available homes has grown substantially, with 548 units now on the market, up from 383 units last year. This increase indicates a shift toward a buyer’s market, offering a wealth of options for potential buyers. This abundance of choices could lead to better deals and more choices, providing a silver lining in the current market conditions.
Homes are also taking longer to sell, with the median time on the market rising to 48 days compared to 47 days last year. Additionally, buyers are receiving larger discounts, as detached homes are now selling at an average discount of 3.4%, compared to 1.5% last year.
Palm Springs Market Shift – Trends
These trends in the Palm Springs area reflect similar patterns throughout the Coachella Valley. The median price of detached homes in the broader region has dipped to $653,726, slightly lower than last year’s price. The three-month average sales across the Valley have also dropped to 578 units per month, compared to 629 units a year ago.
According to The Desert Houseing Report, current sales are 29.7% below typical levels and have declined for the past four months. However, the anticipated decrease in interest rates, which could make borrowing more affordable, is expected to boost buyer interest, potentially altering the current market conditions.
While the real estate inventory has improved, you should note that the low sales volume maintains a relatively stable supply-demand balance across the market. This stability should reassure homebuyers and sellers about the overall health of the market, providing a sense of confidence in the current conditions.
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