November 2018 Greater Palm Springs Area Market Update
Dated: November 27 2018
The first statistic I’d like to share with you is our market’s absorption rate, also called months’ supply of inventory, which defines how many months it would take to sell every home that was currently available on the market if no new homes were listed. As of November 1, our months’ supply of inventory was 3.7 months, which is up 0.7% over last month due to seasonal trends. When comparing this number to the same date over the past six years, this is by far the lowest reading, and it’s a sign that the market continues to be a seller’s market.
The average days on market in October of 2018 was 64 days, which is 3 days fewer than this same time last year.
Looking at months of supply in terms of price ranges and comparing each price bracket to this same time last year, the ratio continues to be lower across all brackets. This shows that the market improvements over the last two years spread across all price ranges. That said, it would be nice to see the ratio for homes over $1 million drop down from the current 10.5 months to between eight and nine months.
As of November 1, Coachella Valley had 3,173 units available in their inventory. This is an increase of 505 units over last month. However, this is a seasonal increase; there are large jumps between October 1 and November 1 every year. When we compare it to previous November 1 numbers, we see that this is the lowest inventory of the last six years. This pattern of each month being the lowest inventory compared to previous years has been occurring for over six months now.
The increasing strength that we see in the two regional price indices is also showing in city median prices for both detached and attached homes. Changes in the median prices for detached homes show positive numbers that range from a high of 31.3% for Indian Wells down to 4.1% for Cathedral City. In the attached market, four cities—Indio, La Quinta, Palm Springs, and Palm Desert— show double-digit increases, while only Cathedral City has negative changes.
Interest rates have continued to slowly increase, and the Federal Reserve is on track to raise rates one more time this year. This continues to put some urgency on buyers looking to finance so that they can secure properties and lock in an interest rate. As rates increase, the number of buyers qualified for the higher price brackets will decrease; this may begin to create a softening effect on pricing.
Our continued price appreciation and lower inventory make it a great time to consider putting your house on the market in the Greater Palm Springs area. For buyers who are planning to finance their purchase, there is a little more urgency to get into the market now before rising interest rates negatively affect your purchasing power.
If you have any questions about the value of your home or if you’re interested in exploring the possibility of purchasing a property in the Greater Palm Springs area, we’d love to assist you. Please reach to us with any questions you have and for an opportunity to discuss your unique situation.
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, 2020, and 2021; Will is an Associate Broker/Team Leader of the WILL COOK GROUP with Keller ....
Should you require assistance in navigating our website or searching for real estate,
please contact our offices at
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: October 20, 2021 6:49 PM 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).