Home sales and prices have leveled off some in Palm Springs, but are still well above the figures from one year ago as a surge that started in July 2020 continues to keep demand high and supply low.
That data, provided by the Palm Springs Regional Association of Realtors (PSRAR), shows the following:
- The median price of a single family home in Palm Springs in July was $924,000 — up 28 percent from the July 2020 median price of $722,500, and 176 percent above the average price of $335,000 during a slump in 2011.
- Condominiums and townhomes in the city sold for a median price of $360,000 in July — an increase of 38 percent compared with one year ago.
- Across the entire Coachella Valley, the price of a single family home rose 30 percent over last July — averaging $599,000 in July 2021, compared to $460,000 in July 2020; condominium and townhome prices in the Valley went up 37 percent in July, with an average sale price of $383,250.
- Combined, an average of 205 properties sold each month in Palm Springs during the past three months. One year ago, the number was 164
- The three-month average of total sales in the entire Valley in April was 1,125 units a month, which compares with just 753 units a year ago.
- On August 1 2021, there were 791 units available to purchase, compared with more than 2,000 available units (both single family homes and condominiums and townhomes) available on August 1, 2020.
According to the report, a decrease in the volume of sales for the past two months is notable, but appears to align with the start of the typical seasonal sales decline between June and November.
“It is difficult to imagine any downward movement in home prices at the current time, with demand so heavily weighted over supply, in favor of home sellers,” the report states.
Of particular note is the volume of home sales at each end of the spectrum. Sales of homes under $300,000 are low compared to last year, primarily because there are fewer and fewer homes in that bracket due to the large price increases. Sales of homes over $1 million continue to remain high, with sales at 157 units a month compared to 67 units last year.
There does not appear to be any letup in the speed at which homes are selling. The average time on the market was 25 days in July, compared to 56 days one year ago. That’s the fifth straight month the “time on market” figure has dropped.