Inventory continues to shrink as home prices soar

The cost of an average-size home in Palm Springs has increased dramatically since last year and homes are now selling here at a higher premium than anywhere else in the Coachella Valley, with a price per square foot of $600.

Buyers of single-family homes being sold in the city paid an average of $1,304,451 in March. At the same time, data shows those landing successful offers paid 4% over asking for an unattached home and 2.6% above asking for condos, townhomes, and other attached dwellings.

The data, provided by Greater Palm Springs Realtors (GPSR), shows the following:

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  • In March, the sales price of an average size single-family home in Palm Springs (2,175 square feet) was up 29.4% from the March 2021 median price of $1,008,330.
  • Average size condominiums and townhomes (1,250 square feet) in the city sold for a median price of $441,798 in March — an increase of 34.3% compared with one year ago.
  • Across the entire Coachella Valley, the median price of an average single-family home continued to rise — averaging $660,000 in March, which is a gain of 20.2% over March 2021. 
  • Condominium and townhome prices in the Valley also continued to increase, with an average sale price of $450,000 — a rise of 30.4% from a year ago.
  • An average of 174 properties were sold each month in Palm Springs during the three months ending March. 31. One year ago, that number was 198.
  • On April 1, there were 678 units available to purchase in the Valley, compared with nearly 742 available units available on April 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. All 10 of the communities tracked by PSRAR saw homes sell for a premium.
  • The average time on the market for single-family homes was lowest in Coachella (18 days) and highest in Bermuda Dunes (33 days). In Palm Springs, single-family homes sold were in escrow an average of 19 days compared to 29 days the year before

When home sales are broken down by city, the report shows the largest decline in sales in La Quinta, Palm Desert, Palm Springs, and Rancho Mirage. The cities showing consistent growth remain Cathedral City, Desert Hot Springs, and Indio. 

Data from March 2022 Greater Palm Springs Realtors report.

One of the standout graphs on the report shows the precipitous drop in housing availability, with the Valley’s current inventory sitting at 678 units. The report states, “We continue to find it worrisome that there was no seasonal rise in inventory, which almost always occurs between October and April. It’s worrisome because the seasonal pattern now points to even lower inventory as we move toward September.”

The report goes on to conclude that the only hope for more inventory is a surge of new listings but judging by last month’s trends, that doesn’t seem to be on the horizon.

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