Home buyers in Palm Springs paying Coachella Valley’s highest premium; availability remains scarce-
The cost of an average-size home in Palm Springs decreased slightly in January, but homes are now selling here at a higher premium than anywhere else in the Coachella Valley.
Buyers of single-family homes being sold in the city paid an average of $1,142,843 in January, down $42,500 from the December price. At the same time, data shows those landing successful offers paid 1.5% over asking for an unattached home and 1.7% above asking for condos, townhomes, and other attached dwellings.
The data, provided by Greater Palm Springs Realtors (GPSR), shows the following:
- In January, the sales price of an average size single-family home in Palm Springs (2,175 square feet) was up 24% from the January 2021 median price of $922,896.
- Average size condominiums and townhomes (1,250 square feet) in the city sold for a median price of $407,143 in January — an increase of 30.3% compared with one year ago and $6,000 more than in December.
- Across the entire Coachella Valley, the median price of an average single-family home continued to rise — averaging $617,000 in January, which is a gain of 17.5% over January 2021 and $2,000 from the month prior. Condominium and townhome prices in the Valley also continued to increase, with an average sale price of $425,000 — a rise of 27% from a year ago.
- An average of 161 properties were sold each month in Palm Springs during the three months ending Jan. 31. One year ago, that number was 201.
- Regionally, total sales in January continued to decline. The three-month average of total sales in the entire Valley in January was 1,005 units a month, compared to 1,016 units in December.
- On Feb. 1, there were 596 units available to purchase in the Valley, compared with nearly 1,283 available units available on Feb. 1, 2021.
- While Palm Springs detached home buyers paid above the asking price for most homes, the scenario was not uncommon anywhere in the Coachella Valley. Seven of the 10 communities tracked by PSRAR saw homes sell for a premium.
- The average time on the market for single-family homes was lowest in Desert Hot Springs (22 days) and highest in Bermuda Dunes (38 days). In Palm Springs, single-family homes sold were in escrow an average of 28 days — the same length of time as this time last year.
High prices and fast sales may appear to be good news for real estate professionals, but that is not necessarily the case. With so few homes and such high demand, 2022 could actually see a decline in activity.
“We have entered the strong seasonal period for price strength, and we expect that to continue into 2022,” the GPSR report states. “The forces that have driven prices higher – low inventory and rising sales – continue to dominate the housing market, so we expect home prices to strongly move higher.”
However, the report concluded, “Unless new listings explode, creating more inventory, the net effect of this must be a reduction in the sales rate as we continue into 2022.”