Today I’m bringing you our Palm Springs spring market update. In every community in Palm Springs, prices continue to rise as a result of record-high sales and record-low inventory, both of which continuing driving up demand and driving down supply. The typical price of a detached home in the United States was $660,000 at the end of March, which marks a year-over-year gain of 20.2 percent; this time last year, it was $616,000 in the United States. We anticipate that there will be a continuation of the price increase over the course of the following two months, and then seasonal factors should take over.
The Valley has 678 units of inventory as of the first of April, and the absence of a seasonal escalation in inventory, which nearly always takes place between October and April, is a little bit concerning. Seasonal escalations in inventory are almost always seen between these months. We only have enough inventory to last 0.7 months at the moment, which is 0.1 less than we had this time last year. The only thing that can bring about a rise in inventory is a significant increase in the number of new listings, but considering that there were only 1,244 new listings in March (which is about average), we do not see that happening anytime soon. Because of the extremely low supply and the moderate to high demand from purchasers, which both contribute to higher prices, the inventory levels are at their lowest level on record.
“Prices are continuing to skyrocket as a result of record-high sales and record-low inventory,” the source of the problem said.
Mortgage interest rates have also increased, and they are currently hovering somewhere around 5 percent despite the fact that inflation has been going up. As a result of rising prices, an increasing number of people are being priced out of the market, and there are signs that this is beginning to affect buyer desire. However, interest rates are still historically advantageous, and entering the market at this time may be more reasonable than waiting because it is anticipated that prices will continue to rise at least until the end of the year.
We anticipate that the market will remain favorable for sellers during the entire year of 2022; but, as interest rates continue to rise, there may be increased rivalry among sellers as well as a decrease in demand. If you post your home for sale now rather than waiting until later, you will have less competition and have a better chance of achieving the greatest possible price for your wares.
If you are interested in purchasing a property in the Greater Palm Springs region and have any questions about the worth of your current home or if you are interested in purchasing a home in the Greater Palm Springs area, we would welcome the opportunity to chat with you about your specific situation. We encourage you to get in touch with us by phone, text, or email at your earliest convenience. We’d be pleased to help you. Also, if you have any questions or topics pertaining to real estate that you would like us to answer in a future blog post, please let us know.