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Greater PS Real Estate News

Home Prices Slow Seasonally

backyard view from patio to pool. patio furniture in view
SOLD
80654 Avenida Santa Carmen
Sun City Shadow Hills
Beautiful mountain views from inside and poolside at this move-in ready home. One block to main clubhouse and fitness center with indoor & outdoor pools and spas.
2BD/2BA | DEN | 1,823 SF
Listed @ $610,000
Sold @ $610,000

In June, the median price of a detached home in the greater Palm Springs area was $700,000, up 17% from last year but the same price as last month, according to Market Watch’s Desert Housing Report..

"We have entered the seasonal period," the report says, "when home prices slow, or even decline somewhat, and we expect that pattern to continue this year, perhaps even more so."

Besides the seasonal slow down, the forces that have been driving prices higher -- high sales and low inventory -- are starting to decline because of rising mortgage rates and high prices.

The median price for attached homes was $490,000, up 34% year-over-year but slightly lower than last month. Seasonal factors may also affect the attached home market as we enter the summer.

12-Month Change in Price of Average Size Home

The Desert Housing Report, June 2022, Market Watch LLC

Year-over-year gains in detached homes range from 49% in Indian Wells to 18% in the city of Coachella. In the attached home market, four cities have gains over 40% -- Bermuda Dunes, Desert Hot Springs, Indio and Rancho Mirage.

Data for 12-Month Change in Price of Average Size Home - June 2022 

Monthly Sales -- 3-Month Moving Average

Front of property view from the street, desert landscaping and long pathway to front door
SOLD
81605 Avenida De Baile
Sun City Shadow Hills
Charming, sunny Canterra model open floor plan with expanded, covered patio & beautifully landscaped backyard. Partly turnkey furnished
2BD/2BA | 1,257 SF
Listed @ $425,000
Sold @ $425,000

Sales averaged 923 units a month in June, which is 23% less than last year. It is also about 7% less than average sales in June in the period before the pandemic. "We are now entering the weak, summer seasonal period and," the report says, "if history is a guide, we will see sales drop to average levels of 650 to 700 units a month by late fall."

Inventory Surges

On July 1, area inventory was 1,531 units, which is 877 units more than last year, and a 134% increase.

“What’s significant about this is that it is occurring during the season when inventory normally contracts," says the report.

"It will be important to watch these levels as we approach September, which is the month when inventory normally begins to grow. If this pattern continues, we could possibly re-normalize inventory and reach 3,000 units by late fall."

At the end of June, the median number of “days in the market” throughout the area was 21 days, which is one day more than last month but six days less than last year.

The report concludes that low inventory has kept selling times near their current low numbers, but it appears that forces are in place that will cause selling times to increase.

 


If you have any questions about your how the real estate market is affecting your particular property, simply send us an e-mail. We`ll be glad to answer your questions.

As the above numbers and analysis show, we are still in a strong sellers’ market in the midst of our prime sales season. Anyone who is thinking about listing their home for sale should consider making their move now.

Please contact us if you would like to learn more about your options, including a free home valuation to see what your home is worth in today’s market. And when you list your home, a complimentary staging consult will be offered. We are ready to serve you.



Bonnie and Hank Steele began work as Realtors in 1983, They have successfully listed, staged and sold homes in suburban New York City, St. Simon`s and Sea Island, Georgia, and the Palm Springs area. To sell your home safely in the shortest possible time at the highest possible price, call 760-219-1450