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Healthy buyer demand and constrained supply continue to be the story for much of the country. In the Greater Palm Springs area, showing activity in July remained substantially higher than a year before. And multiple offer situations are a frequent experience in many cities. We are countering 10-20 offers in some cases.
With the inventory of homes for sale still constrained, a competitive market for buyers shows little sign of waning. All the desert cities experienced growth in month-over-month pending home sales transactions. Seven cities show positive year-over-year price gains for detached homes while two are lower. In the attached market we see price weakness in all seven cities that have attached homes.
Despite this significant economic impact of COVID-19, home buyers remain extremely resilient. With mortgage rates remaining near record-low levels and home purchase mortgage applications up from a year ago, high buyer activity is expected to continue into the late summer and early fall market.
Tips for Buyers
Buyers are still in a great position with low-interest rates but they have to be cognizant of the lack of inventory causing multiple bid situations. One thing to focus on is making sure that you’re not securing an offer at a price that might run into appraisal issues. Buyer’s Agents should run comparable sales in the neighborhood to make sure you’re paying fair market value.
Tips for Sellers
Forbearance programs, which allow borrowers to delay mortgage payments, might also be playing a role in keeping prices high and inventory low. And it means also that many struggling homeowners aren’t entering foreclosure or being forced to sell. Forbearance, however, eventually ends, and borrowers may lose their homes if they can’t afford to make up the missed payments.
Experts warn that the longer the pandemic continues, the more likely people will permanently lose their jobs and that long-run damage will catch up to the housing market.
For those people who put selling on the back burner during the pandemic, now is a great time to reassess coming back on the market. It might be wise to capture the market now rather than waiting to see if inventory is going to start picking up and creating more competition for your listing.
If you would like a FREE CMA or Comparative Market Analysis of your home in Coachella Valley then please contact us so that we can do an accurate analysis on your home. If you’re selling your home you will be glad that you did.
Mark Kunce, SRES®
Co-Owner/Realtor at Avenue Properties