While banks tighten credit for first-time buyers, the pandemic is hammering Americans who don’t have the privilege of working remotely. The wealthy, meanwhile, are benefiting from the surging stock market and mortgage rates are at record lows. Demand for luxury homes in the greater Palm Springs area is soaring, underscoring how the COVID-19 pandemic has intensified wealth disparities in the U.S.
Luxury Home sales in Palm Springs area in January 2021 (Price Range: $750,000 – No Limit) jumped 63.2% year over year.
The number of under contract listings was 363, set a new all-time high since 2005, up 41.2% compared to previous month and up 207.6% compared to previous year.
Versus last year, the total number of luxury properties available this month is lower by 486 units of 52.4%, sets a new all-time low since 2005.
Today’s Coachella Valley Luxury Real Estate Market gives sellers immense negotiating power. A lot of people with high incomes work from home, and many can’t pass up buying luxury homes with interest rates in the 2-plus percent range because their money goes further. We think that the demand will hold through the whole of 2021.
With so many more luxury home buyers in the market than homes available for sale, home buyers are frequently entering into bidding wars for the houses they want to purchase. This buyer competition drives home prices up. As a seller, this can definitely work to your advantage, potentially netting you more for your house when you close the deal.
If you’re considering selling your luxury house, the best time to do so is now.