Summer 2022 has been a season of change for the U.S. real estate market. With housing affordability at a 33-year low, existing-home sales have continued to soften nationwide, falling 5.9% month-to-month and 20.9% year over-year as of last measure, according to the National Association of REALTORS® (NAR). Pending home sales have also continued to decline, while new listings have steadily increased, with unsold inventory reaching 3.3 months’ supply at the start of August. The pullback in demand has been particularly hard on homebuilders, causing new-home sales and construction to slow.
Home sales in the Greater Palm Springs area have been falling dramatically The three month average of sales in August was 674 units a month, which is lower from a year ago by 31%. The largest declines were again in the cities of La Quinta and Palm Desert, where sales were down 42 and 34 respectively.
The August’s median price of a detached home in the Coachella Valley fell to $682,000 from $710,000 last month, but it’s still up 17.4% year over year. We have entered the seasonal period when home prices usually slow, or even decline, so some of this decline is seasonal but most we believe represents the general corrective turn that is occurring in home prices everywhere. The median price for attached homes in
August was at $467,500, which is down again from the previous month but up 25.1% year over year.
On September 1st, Valley inventory was 1,593 units, which is 757 units more than last year. After surging for three months, inventory has stayed around 1,600 units for the last two months. Some of this is seasonal, and we expect it to stay at this level for another month or so. Then, if seasonal forces continue, it should start to grow again, possibly reaching 2,500 units by February.
Inflation, higher interest rates, and fears of a potential recession have taken a toll on buyers and sellers this summer, leading many people to stay on the sidelines to see what will happen with the market. But some experts, including NAR Chief Economist Lawrence Yun, believe the worst of inflation may be over. Although sales prices remain up from this time last year, price growth is expected to moderate in the months ahead as the market continues to shift in a more buyer-friendly direction.
If you’re selling your house in Coachella Valley to make a move, it means you’ll have more options for your own home search. That gives you an even better chance to find a home that checks all of your boxes. So, if you’ve put off selling because you were worried about being able to find somewhere to go, know your options have improved.
If you’ve been searching for a home and have found yourself stepping out of the process because you’re worried about rising costs, connect with a trusted Palm Springs real estate expert. Having a team of local advisors on your side may be just what you need to guide your search in a new and more affordable direction.
If you’re thinking of making a move, call us 760-766-6093 to discuss your goals and what lies ahead, so you can pick your best time to make a move.