As we step into the heart of summer, the real estate market in Palm Springs, California, along with the broader Coachella Valley, reveals intriguing shifts and trends. Whether you're contemplating buying or selling a home, staying informed about the current market dynamics is crucial. This comprehensive update for June 2024 aims to provide you with valuable insights, helping you make well-informed decisions in the vibrant Palm Springs real estate market.
Let's dive into the details of Palm Springs Real Estate Market Update for June 2024 to get a clearer view of its dynamic nature.
Market Dynamics
Price Variations
The median price of a detached home in the Coachella Valley experienced a slight decline in June, settling at $695,000 after peaking two months ago. This represents a modest year-over-year increase of 0.7%. For attached homes, the median price remained steady at $475,000, showing no change from last year. Notably, price changes vary significantly across different cities. Coachella saw a remarkable 19.6% increase, while Bermuda Dunes experienced an 11.5% decrease.
Sales Trends
Sales activity has shown a slight decline compared to last year. The three-month average sales in June stood at 739 units per month, down from 798 units the previous year. Despite this, Palm Desert and Palm Springs remain the leaders in sales volume, with 163 and 151 units sold per month, respectively. The long-term average sales for the region hover around 617 units per month, indicating a relatively stable market despite seasonal fluctuations.
Inventory Insights
As of July 1st, the total inventory in the Coachella Valley was 2,464 units, marking a decrease of 146 units from the previous month. This reduction follows the typical seasonal pattern as we move into the summer months. However, inventory levels are still about 1,000 units below pre-pandemic norms, suggesting a continuing tight supply. The "months of sales" ratio, a critical indicator of market balance, stands at 4.0 months, slightly higher than last year's 2.9 months, reflecting a balanced market environment.
Days on Market
The median days on market (DIM) for homes in the Coachella Valley was 45 days in June, consistent with the previous month but seven days longer than last year. Coachella boasts the shortest selling time at 18 days, followed by Cathedral City at 30 days. On the other end, La Quinta has the longest median selling time at 53 days. This metric highlights the varying pace at which homes sell across different cities in the valley.
Price Adjustments
In June, detached homes in the region were selling at an average discount of 2.0%, while attached homes had a slightly higher discount at 2.6%. The city of Coachella stands out, with homes selling at a slight premium of 0.1%. Conversely, Bermuda Dunes had the largest average discount of 4.2%. Overall, the percentage of homes selling above the list price was 14.8%, a slight decrease from 17.9% last year.
Current Interest Rates
Interest rates in Palm Springs and the broader Coachella Valley have been a pivotal factor in shaping the real estate market. As of now, rates remain relatively high, impacting affordability for many buyers. However, there is cautious optimism that the Federal Reserve might implement rate cuts in the near future. Lower interest rates would likely boost buyer interest, making home purchases more feasible for a broader range of potential homeowners. While high rates pose a challenge, they also present an opportunity for sellers to attract serious, financially prepared buyers.
Forward Outlook
Looking ahead, the real estate market in Palm Springs and the Coachella Valley is expected to remain dynamic. While sales have been below historic norms, the anticipation of potential interest rate cuts by the Federal Reserve could stimulate buyer activity. Current interest rates continue to influence market conditions, with prospective buyers closely watching for any signs of rate adjustments that could make home buying more attractive.
The real estate landscape in Palm Springs and the Coachella Valley is continuously evolving. Staying informed about current trends and market dynamics is essential for making sound real estate decisions. Whether you're considering buying or selling a home, understanding the nuances of price variations, sales trends, inventory levels, and interest rates can empower you to navigate this vibrant market successfully.
If you want to dive deeper into the nuances of the Coachella Valley real estate market, check out the Desert Housing Report for more valuable insights.
What other questions do you have?
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.
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]
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PS- Are you a part of the LGBTQ+ community and looking to relocate to Palm Springs and the Coachella Valley? Check out our FREE “Palm Springs Enthusiasts LGBTQ+ Relocation Guide” and find out why Palm Springs is such an oasis of Pride and inclusivity – brought to you by The Palm Springs Guys and Glen Nadeau Real Estate 🏳️🌈
*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.
