Palm Desert is experiencing a strong seller’s market at the moment, as there are 14 percent fewer homes listed for sale now than there were last year. As a result, homes are selling significantly faster. We’re seeing higher list prices as well, so although it’s a good time to be selling, it’s not a great time to be buying.
Fewer Homes Listed in Palm Desert
This time last year, the city of Palm Desert had a total inventory of 839 homes listed for sale, while today that figure is 14 percent lower at only 725. What’s surprising is that the change from just last month, when there was an inventory of 805 homes, was a substantial drop of 10 percent. Inventory is not as low as it was in July of last year, when it went all the way down to 600, but if the downward trend continues buyers are going to see a shortage of home choices over the summer months.
Homes are selling faster than they were in May of last year, too. The median days a property was on market then was 102, but that’s dropped by 19 percent to 83 days at present. Interestingly, while there were more homes listed last month, they were selling faster, taking just 78 days to sell. So, there’s been a six percent increase from last month to the present.
House Prices Increasing in Palm Desert
Median list price and median price per square foot have also risen, though with less inventory this isn’t surprising. Sellers in Palm Desert can take advantage of fewer homes listed for sale right now and potentially increase their asking prices, though a better method may be to list for a more reasonable price and see if you can generate more interest. This way, you have the potential to get a higher price, or multiple offers, therefore pushing up the sale price. Median price per square foot has risen by three percent from last month—from $195 per square foot to $200 per square foot—and seven percent from last year, up from $187 per square foot.
The median list price has climbed even more drastically. It was $329,000 last year, and rose by 10 percent to $359,900 last month. Today the median list price stands at $365,000, a one percent increase over last month.
Mortgage Rates Rising Again
Reflecting the current national trend, mortgage rates in California have risen. Rates were at one of their lowest for several years over the winter season, dropping to around 3.2 percent, but since then mortgage rates have mostly been on the up. Trends show that there’s historically been quite a difference between the high point and low point each month, so whether rates will continue to rise—or see a drop again by the end of May—remains to be seen.
California mortgage rates are staying just below the national average though, at 3.51 percent compared to 3.53 percent. For buyers, this rate—which is still reasonably low—makes purchasing a home in Palm Desert a little easier. On the whole though, the city is in a seller’s market, so wait if you can as buying now would not be the best idea.
