Lack of inventory continues to hamper home sales, drive prices higher in Palm Springs
Sellers in Palm Springs continue to see homes go quickly, but not as quickly as recent months. Their asking prices continue to be exceeded.-
Data from the monthly Desert Housing report shows home prices in Palm Springs continued to climb in December, finishing 2021 up more than 36% compared to the end of 2020. Throughout the Coachella Valley, including here, housing inventory is now at its lowest point ever recorded.
The data, provided by the Palm Springs Regional Association of Realtors (PSRAR), shows the following:
- In December, the sales price of an average size single-family home in Palm Springs (2,175 square feet) was $1,185,357 — up 36% from the December 2020 median price of $871,871. That number was only $3,000 higher than November’s price.
- Average size condominiums and townhomes (1,250 square feet) in the city sold for a median price of $401,254 in December — an increase of 30.4% compared with one year ago.
- Across the entire Coachella Valley, the median price of an average single-family home continued to rise — averaging $615,000 in December 2021, which is a gain of 18.3% over December 2020. Condominium and townhome prices in the Valley also continued to increase, with an average sale price of $402,900 — a rise of 22.5% from a year ago.
- An average of 164 properties were sold each month in Palm Springs during the three months ending Dec. 31. One year ago, that number was 223.
- Regionally, sales in December declined from November primarily due to a drop in sales in the four high-end cities of La Quinta, Palm Desert, Palm Springs, and Rancho Mirage. The three-month average of total sales in the entire Valley in December 2021 was 1,016 units a month, compared to 910 units last December.
- On Jan. 1, there were 607 units available to purchase in the Valley, compared with nearly 3,000 available units available on Jan. 1, 2021.
“This is disappointing since we’ve just passed through the three historically strongest months of inventory increase.” the report states. “…Other Southern California regions show the same pattern; that inventory is again falling toward historic lows.”
Sellers in Palm Springs continue to see homes go quickly, but not as quickly as in recent months. Their asking prices continue to be exceeded. The average time on the market in the city in December 2021 was about 17 days. It was 35 days in December 2020. Sellers are currently seeing average offers 1.4% above the asking price, compared to only .2% above the asking price this time last year.
Meanwhile, the construction of new housing projects in the city shows no signs of letting up. The Palm Springs Planning Commission is expected to approve an additional 130 homes at the Miralon development in the north part of the city at its regular meeting this evening. The homes will be located in the middle of the 309-acre project, joining those previously permitted on the perimeters.
A half dozen other projects are currently underway in the city, and more are working their way through the city’s Planning Department on their way to the Commission. Some of them are listed on this website maintained by city staff.