Home sales in Palm Springs have declined, according to the latest data available, but only due to lack of inventory, not lack of interest. At the same time, the price of an average size single family home in the city is now above $1 million.
That data, provided by the Palm Springs Regional Association of Realtors (PSRAR), shows the following:
- The median sale price of an average size single-family home in Palm Springs (2,175 square feet) in October was $1,175,878 — up 34.7 percent from the October 2020 median price of $872,675, and 263 percent above the average price of $323,879 during a slump in 2011.
- Average size condominiums and townhomes (1,250 square feet) in the city sold for a median price of $371,392 in October — an increase of 21.7 percent compared with one year ago.
- Across the entire Coachella Valley, the price of an average single family home continued to rise compared to last October — averaging $600,000 in October 2021, compared to $527,500 in October 2020. Condominium and townhome prices in the Valley also continued to increase, with an average sale price of $370,000 compared to $310,000 a year ago.
- Combined, an average of 173 properties sold each month in Palm Springs during the three months ending November 1. One year ago, that number was 237. Palm Springs continues to lead other Valley cities in total units sold.
- The three-month average of total sales in the entire Valley in April was 1,050 units a month, which compares with 844 units a year ago.
- On November 1, there were 915 units available to purchase in the Valley, compared with 2,014 available units (both single family homes and condominiums and townhomes) available on November 1, 2020.
“This ongoing paucity of inventory continues to be the driving force lifting home prices higher,” the report states. “Since Valley inventory is very seasonal, usually reaching peak levels around March, it will be interesting to watch whether this pattern continues as we move into 2022.”
Sellers in Palm Springs continue to see homes go quickly and continue to have their asking prices met, if not exceeded. The average time on market in the city was 19 days, compared to 42 days one year ago. Sellers are seeing average offers 2.3 percent above asking price in the city this year, compared to 2 percent below asking price last year.
While there may be some flattening of home prices throughout the Valley, overall there is no sign that the surge that first began in 2020 will let up.
“As we have been saying, we believe year-over-year price changes should begin to moderate and this appears to be happening,” the report authors said. “However, we are entering a seasonal period of price strength, so we expect any moderation to be minimal.”