A housing report covering the month of August revealed another slight decline in the median price of homes in the Coachella Valley. The median dropped to $660,400, a 3% decline compared to last year at the same time.
In Palm Springs, the median price of an average-size detached home in August 2023 was $1.27 million. In August 2022, that number was about $1.4 million. Palm Springs had the highest percentage decline in sales compared to a year ago at 18%.
The authors of the housing report note that while prices are contracting, sales are also low, meaning supply and demand remain balanced. The report estimates price weakening will continue for another month or two.
For about four months, sales had been improving from a historic 35% below average in January. The trend is flattening out, though, with sales currently sitting at about 24% below average. The report’s authors don’t expect sales to improve unless interest rates come down from 7.5% to about 5%.
Inventory in the valley sits at 1,601 units at the start of this month, 28 fewer than the month before, and continues the downward trend of the last six months. Inventory is at almost the same level as the same time last year. The report notes, “We expect the normal seasonal increase in inventory to start next month.”
Meanwhile, the median number of days in market is 38 days. That number has steadily been dropping since April, and the report expects it will continue to drop due to low inventory. This time last year, the median number of days in market was 28 days, and the report authors believe we could reach that number again within a month or two.
