At latest count, the number of single family homes for sale in the entire Coachella Valley – from Palm Springs to Indio, in all prices ranges, is down to less than 2000 units. That’s over a 60% decrease in the number of properties for sale in Palm Springs and throughout the Valley in just two years. The decrease in available single family homes for sale in Palm Springs alone is just as dramatic, with slightly less than 180 homes for sale, compared to over 480 just two years ago. What is happening in the Palm Springs real estate market mirrors the current national trend in real estate as discussed in a July 29, 2012 LA Times article, Shrinking Supply of Homes for Sale. The last 24 months have been really active with lots of buyers scooping up available houses and taking advantage of historically low mortgage interest rates.
Market Trends in Palm Springs Real Estate
With shrinking inventories of Palm Springs real estate, we are experiencing more and more multiple offers. We clearly have seen prices increase in selected communities and neighborhoods where activity is highest. Typically prices below $180-200K are attracting the largest number of buyers. Properties in this price range are the most affordable for individuals looking to buy their family home and are also attractive to investors who are looking for good investment rental properties, with an expected ROI (return on investment) of 6-8% after expenses. It’s like a feeding frenzy at this end of the market.
The bottom line is this. If you’ve been considering buying a piece of Palm Springs real estate – a winter home, or an investment property, start the process now because there could be even more competition should inventories continue to decrease. When you decide to start your search, it is important to use a professional, local REALTOR who is knowledgeable about our Palm Springs area, its communities and neighborhoods. I would be happy to help you with all of your real estate needs, and answer any questions you might have.
Direct: 760 861-0952