Palm Springs Market Affordability Report September 2017
Where is the Palm Springs Market heading as we move into our main selling season?
Trying to stay abreast of a Real Estate Market is daunting. Our local Realtor Board makes that a bit easier by compiling these handy charts for you. We then can offer you the Palm Springs Market Affordability Report with some ease.
The following summary is provided by our local board:
The median price for the entire Coachella Valley at the end of September was $360,000. That is 4.3% above a year ago but 8% below the peak price of $389,000 last May. As the chart clearly shows, prices have once again returned to the long term 4% growth curve.
However, even with the “give back” the median September price of $235,000 for attached homes was still 2.2% above last year. The year over year change in city median home prices shows wide variation. For detached homes it goes from an 11.7% increase for Rancho Mirage down to minus 7% for Indian Wells.
We see a similar result for attached homes which go from a high of 14% for Rancho Mirage down to minus 8.2% for La Quinta.
Even though sales have declined the last three months – as they do every year at this time – the three month average of total sales in September was still ahead of last year by 6.3%. Sales of detached units was 3.8% higher while those of attached units was 11.7% higher.
On October 1st the Valley’s “months of supply” ratio was 4.0 months. That’s the lowest ratio on October 1st since 2013. Last year the ratio on October 1st was 5.5. This is a very encouraging sign as we approach next year’s selling season. This positive indicator is confirmed by September’s median value of 71 “Days on the Market”. This is nine days less than the number one year ago.
This represents our most asked question. How much less can we get the property for? My stock answer is usually 2-4% and that is still the case but you can see that line is trending up as the market tightens. It all depends on the comps and condition of the property and we will always be tough negotiators for you.
So what are we saying here?
Simple. The summer provided us with what we call a price “GIVE BACK” or decrease in prices. Condos remain a bit lower from their high in 2013 while detached homes still struggle to get back to their 2007 high mark. With a continued short supply we think that an upward pressure on prices will continue. This a GREAT time to buy. But be warned that with short supply, sale prices will be a lot closer to list prices so we will have to be tough negotiators.
And One More Thing:
Prices are creeping up yet mortgages remain affordable so take advantage of the deals out there and buy soon!