Click here for the full Desert Housing Report for August 2024.
The Palm Springs real estate market is known for its unique blend of luxury homes, desert getaways, and vibrant communities. But, just like any market, it's constantly evolving. The August 2024 Desert Housing Report provides valuable insights into the current housing trends in Palm Springs and the broader Coachella Valley. Whether you're looking to buy or sell a home, understanding these key metrics is critical to making informed decisions. Let’s dive into the numbers and explore what’s happening in the market right now.
Market Dynamics
The August 2024 Desert Housing Report reveals a cooling real estate market across Palm Springs and the Coachella Valley. With rising inventory levels and modest price adjustments, the market is moving away from the pandemic-induced frenzy we saw in previous years. However, for buyers and sellers alike, this presents a unique opportunity to navigate a more balanced housing market.
Price Variations
One of the most notable trends in the August report is the slight drop in median home prices. The median price of detached homes in the Coachella Valley is now $653,726, which is about $5,000 lower than it was at this time last year. Meanwhile, attached homes like condos and townhomes are priced at $445,000, also down by $5,000 compared to 2023.
What’s particularly interesting is that different desert cities are experiencing vastly different pricing dynamics. While Palm Springs saw a 6.1% decline in detached home prices year-over-year, Coachella experienced a 22.2% surge. These variations highlight the importance of understanding specific local markets before making a move.
Sales Trends
Sales activity across the Coachella Valley has slowed down in 2024. The report shows that total three-month sales are 29.7% below the historical norm, reflecting a market cooldown that has been ongoing for about four months. For August 2024, there were 578 home sales across the region, down from 629 sales last year.
Palm Springs saw 103 homes sold, making it one of the top-selling cities in the area, just behind Palm Desert, which led the pack with 129 sales. However, this decline in sales volume creates opportunities for buyers to negotiate better deals as the competition eases.
Inventory Insights
If you’ve been in the market recently, you might have noticed an increase in available listings. As of September 1st, there were 2,237 homes for sale in the Coachella Valley—a rise of 576 units compared to last year. While inventory levels are improving, they’re still about 1,000 units below what was considered normal before the pandemic.
For buyers, more inventory means more options. Sellers, however, should be aware that increased competition could mean longer listing times or the need to price their homes more competitively.
Days on Market
The median number of days on the market (DOM) for homes in the Coachella Valley is now 48 days, which is 10 days longer than it was a year ago. Interestingly, different cities show vastly different DOM figures. For example, homes in Coachella are selling faster than anywhere else, with an average of just 14 days on the market. In contrast, Indian Wells sees an average of 63 days before homes sell.
Price Adjustments
While home prices have cooled, not every city in the Coachella Valley is seeing significant declines. The August 2024 Desert Housing Report shows that homes in Bermuda Dunes, for example, are still fetching higher prices, with attached homes showing a 10.9% increase year-over-year. On the flip side, Desert Hot Springs saw an 11.8% drop in attached home prices, signaling a more buyer-friendly environment.
For sellers, it’s crucial to stay informed about these local market trends to ensure your home is priced appropriately for current conditions. Buyers, on the other hand, may find this the perfect time to enter the market and secure a deal, especially in cities where prices have softened.
Current Interest Rates
One of the most important factors affecting the housing market in 2024 is the anticipated drop in interest rates. The Federal Reserve has indicated that rates may decrease toward the end of the year, which could reignite buyer interest across Palm Springs and the Coachella Valley. Lower interest rates generally make homeownership more affordable, allowing buyers to qualify for larger loans or reduce their monthly mortgage payments.
However, there's a flip side to this trend. While lower rates can attract more buyers, they can also create more competition for homes, driving up prices in certain areas. For sellers, a rate drop might be a window of opportunity to attract more buyers and get a higher price for their home before the market heats up again.
Forward Outlook
Looking ahead to the rest of 2024, The Palm Springs real estate market is likely to stabilize as inventory continues to rise and interest rates potentially drop. While sales activity may remain lower than historical norms, buyers and sellers can both benefit from the current conditions—provided they stay informed and act strategically.
Considering Zillow’s Palm Springs Real Estate Market Overview, buyers should take advantage of the increased inventory and lower prices in select cities, while sellers should focus on making their homes stand out in a competitive market. With the right approach, both buyers and sellers can navigate these trends and make the most of the current market dynamics.
The August 2024 Desert Housing Report paints a picture of a shifting real estate market in Palm Springs and the Coachella Valley. With inventory on the rise and prices beginning to adjust, both buyers and sellers have unique opportunities to make smart real estate moves. Whether you're thinking about buying or selling, staying informed about these trends will be key to success.
If you're curious about the value of your home in today’s market, we offer a free home valuation, so you can get an accurate estimate of your property’s worth, and get started on your Palm Springs real estate journey!
If you want a better understanding of the recent National Association of Realtors Settlement changes that have recently gone into place, check out our The Truth About the NAR Settlement: What You Need to Know article.
Consider an experienced and knowledgeable local realtor (like me) to help you make sense of things.
If you’re ready to buy and/or sell yourself, I look forward to assisting you. I promise to give you a much more targeted answer than ChatGPT, Google or the news will.
What other questions do you have?
Are you thinking about buying or selling a home in Palm Springs this year? What concerns do you have about the current market? How do you think the expected drop in interest rates will affect your decision to buy or sell a home in Palm Springs?
Please feel free to give me a call, text, email me – or let’s schedule a Zoom meeting.
I’m looking forward to connecting with you!
Your Palm Springs Insider,
Glen Nadeau
📱 Call or Text: 805-220-8097
📨 Email: [email protected]
📅 Zoom: Click here and let's schedule it!
💻 Website: https://www.modernlivingpalmsprings.com/
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*We cannot guarantee any of the above statements or third-party links. Before you enter any transaction, you should read and review all contracts, leases, and information as they are unique and subject to changes. We recommend you consult with your accountant, attorney, tax advisor, and local real estate professionals prior to any real estate transactions.
