At this point in the year, we are getting a good sense for how the Greater Palm Springs Real Estate market is likely to perform for the foreseeable future. And although it is not a
Palm Springs Area Real Estate Market Trends July 2018 And Housing Bubble Chatter
Palm Springs Area Real Estate Market Trends July 2018
The median detached home price in Palm Springs Area in July was $400,000, down $16,500 from June, but up $26,000 from last year. The median attached home price in July was $270,000, up 6% from last year. Inventory on August 1st stood at 2,735 units, 611 units less than the last August. It is the lowest inventory number since August 2013. We can probably expect to go even lower over the next two months before seasonal forces begin to take the Inventory Ratio higher as it usually begins to do around October 1st.
Housing bubble chatter has increased this summer, as market observers attempt to predict the next residential real estate shift. It is too early to predict a change from higher prices and lower inventory, but the common markers that caused the last housing cooldown are present.
Wages are up but not at the same pace as home prices, leading to the kind of affordability concerns that can cause fewer sales at lower prices. There are beginning to be hints of more supply in several markets across the country, coupled with a slowdown in total sales. In San Diego, market-wide, inventory levels were up 11.2 percent and Closed Sales decreased 8.6 percent. 20 percent of all listings had a price cut in June, up from 12 percent a year ago. In Orange County, attached homes inventory has increased to 3.0 months, up 36.4 percent from last year. These factors could potentially slow the longstanding trend of year-over-year median sales price increases.
"In the past, California, one of the largest housing markets in the nation, has been a predictor for the rest of the country. ", CNBC reports. "Home prices have been rising everywhere, amid a critical housing shortage. Prices usually lag sales by several months, and sales are beginning to crumble, even as more inventory comes on the market. The supply of homes for sale increased annually in June for the first time in three years, according to the National Association of Realtors, but sales fell for the third straight month."
Statewide, the median home price decreased to $591,460 in July, down 1.9 percent from $602,760 in June and up 7.6 percent from a revised $549,470 in July 2017. At the same time, single family homes sales were down about .9 percent statewide from the revised 410,800 level in June and down 3.4 percent compared with home sales in July 2017 of 421,460, according to information collected by C.A.R. from more than 90 local Realtor associations and multiple leasing services statewide.
"While home sales continued to decline in recent months, the softening of the market is more indicative of a market shift rather than a major market correction," said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young.
With a growing economy, solid lending practices and the potential for improved inventory from new listing and building activity, market balance is more likely than a bubble.
For Sellers: You still stand to make a pretty profit if you sell your Cochella Valley home this year, but the earlier you can list, the better off you'll be. Don’t fall victim to thinking Palm Springs Real Estate market is SO hot you don’t need to prepare your home properly.
For Buyers: Even if there’s no comps in the neighborhood due to low inventory, make sure you have your Coachella Valley realtor to run comps for those homes you’re interested in. You want to make sure these homes are actually priced at fair market value, and seeing as several homes on market today are overpriced, make sure your realtor helps determine if in fact you are getting a fair price when you buy your home. Buy something you can afford. Whether it’s an investment property or a home, you need to be able to afford it. There’s never a wrong time to buy the right house.
If you are thinking about buying or selling your home, or know someone who is, please give us a call. Together, let's figure out all your options. We will be with you every step of the way.
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