Recently I did a study for a client who asked the simple question, “Are Palm Springs real estate prices rising, falling, or steady?” My answer to the question was determined by evaluating all Palm Springs properties for sale and sold in on our Desert Area MLS for the last twelve months. I included both single family homes and condos. An analysis of Palm Springs real estate market trends shows the following:
1. Low End Properties – Below $200K, prices are up about 13% from a year ago, and inventory is down over 60%. This is where most investors are looking, and they are bidding up prices. We have lots of short sales but few REO’s.
2. Upper Low End Properties – Prices in the $200K to $500K are down 4% and inventory is down about 36%. This category includes lots of short sales, but not many REO’s.
3. Moderately Priced Properties – At the level of $500K to $1M, prices are up a slight 2% but are mostly flat. Inventory is down 25%.
4. High End Properties – Prices for homes above $1M are up 25%, and inventory is down 40%.
Real Estate Market Trends in Palm Springs
I then checked Palm Springs real estate market trends in the MLS sales records as far back as I could go, which is thirteen (13) years. I found that we have never had this few properties for sale in Palm Springs, at least not since 2000. In this graph, dark blue represents Homes Sold, light blue represents Homes Listed during that time.
As we are now entering our winter “snow bird season”, we can expect a predictable seasonal increase in the number of new active listings, with prices peaking in December or January. The season will mostly end by the end of March and we will return to lower inventory levels.
Throughout the Palm Springs real estate market, I anticipate that, while inventories remain at relatively low levels, prices at all market levels will likely be going up for the foreseeable future. My answer is general in nature but does give a “feeling” of the dynamics of the Palm Springs real estate market today.
That’s it for now. Please check out all the great search features here on our new web site! And remember to call or email me with all of your real estate needs. I’ll be happy to help.
____ Dick Sakowicz
____ Re/Max Real Estate Consultants
____ Direct: 760 861-0952
____ [email protected]