For today’s market update, the first metric I’d like to discuss is our months-of-sales ratio, which gives us our absorption rate. On October 1, the months-of-sales ratio (the level of inventory divided by the average sales rate over 12 months) was 3.4 months.
Like inventory, the months-of-sales ratio is very seasonal, and ratios should only be compared to other ratios in the same month of previous years. This latest ratio is almost exactly equal to October 1 of 2018, and the ratios for both this and last year are the lowest they’ve been over the last 10 years!
The median days on market for the region is 65 days, meaning that on average, homes take that many days to sell. This is effectively equal to last year’s 66 days. The chart you’ll see in the video above at 1:04 shows that our days on market has been hovering around 70 days for the last three years.
At the current sales rate, the months-of-sales ratio for homes priced under $200,000 is 1.9 months, while the ratio for million-dollar homes is 7.8 months. Between those extremes, we see a very normal increase in the months-of-sales ratio with respect to price.
Overall, this metric shows the housing market to be in good condition throughout all price ranges. The Coachella Valley inventory continues to remain historically low; on October 1 of this year, there were 2,736 units for sale, which is the lowest level of inventory over the last 10 years.
While low inventory makes it difficult for buyers to find homes, the low supply is a very positive indicator for higher home prices. Interest rates have actually dipped a little again this past month—however, volatility continues to be the norm. Our continued low rates have moved buyers off the fence and well-priced homes are getting snatched up quickly. Now is a great time to consider selling your Greater Palm Springs area home and getting the highest possible price for it.
If you have any questions about the value of your home or if we can assist you in finding your own slice of the California desert, we’d love to talk to you. Simply reach out to us, and we’ll discuss the best path for you given your unique circumstances.
This Blog courtesy of Will Cook, WILL COOK GROUP | Keller Williams Luxury Homes, Palm Springs, CA | DRE #01879277
Ranked in the top 1% of all agents valley wide and named one of the Palm Springs Life Top Realtors for 2019 and 2020, Will is an Associate Broker/Team Leader of the WILL COOK GROUP with Keller William....
WILL COOK GROUP | Keller Williams Luxury Homes | DRE# 01879277
435 N. Palm Canyon
Palm Springs, CA 92262 760-565-5714
Should you require assistance in navigating our website or searching for real estate, please contact our offices at 760-565-5714.
The information being provided by SoCalMLS, CRISNet Regional MLS, CARETS is for the consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumer may be interested in purchasing. Any information relating to real estate for sale referenced on this web site comes from the Internet Data Exchange (IDX) program of the SoCalMLS, CRISNet Regional MLS, CARETS. ZipRealty, Inc. is not a Multiple Listing Service (MLS), nor does it offer MLS
access. This website is a service of ZipRealty, Inc., a broker participant of SoCalMLS, CRISNet Regional MLS, CARETS. This web site may reference real estate listing(s) held by a brokerage firm other than the broker and/or agent who owns this web site.
The accuracy of all information, regardless of source, including but not limited to open house information, square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals. The data contained herein is copyrighted by SoCalMLS, CRISNet Regional MLS, CARETS and is protected by all applicable copyright laws. Any unauthorized dissemination of this information is in violation of copyright laws and is strictly prohibited.
Copyright 2021 SoCalMLS, CRISNet Regional MLS, CARETS. All rights reserved. Certain information contained herein is derived from information which is the licensed property of, and copyrighted by, SoCalMLS Inc
Data last updated: January 22, 2021 2:39 AM UTC
If a listing displays "Short Sale/Subject to Lender Approval" then that listing has been identified by the seller and the listing broker as a "Short sale." This means that, at the listed price, the proceeds from the sale may not be adequate to pay all liens and costs of sale. Any offer made that does not fully cover the existing amount(s) owed to the lienholder(s) plus the costs of sale could be subject to lienholder approval, which approval may be exercised at the sole and exclusive discretion of the lienholder(s).