The Greater Palm Springs area real estate market remains hot ahead of the spring selling season, three-month total sales in February averaged 852 units a month, which is 19% less than last February. While down from last year it is still a hundred units higher than pre-pandemic levels.

Palm Springs Area Real Estate Market Update February 2022

The cities of Rancho Mirage, Indian Wells and Indio have year-over-year increases above 30% for their average detached home. Eight cities have price gains over 30% for attached homes, with La Quinta having a year over year price increase of 51.4%. The high demand for attached homes is due to the lack of detached home supply in the lower price ranges.

With a shortage of existing homes for sale, many prospective buyers are turning to new construction for their next home purchase. But with rising construction costs, + 87.5% + 5.8% many buyers are finding they can’t afford to purchase a new home. Nearly 7 out of 10 U.S. households can’t afford a new median-priced home, according to data recently released by the National Association of Home Builders (NAHB), which found that 69% of U.S. households lack the income to qualify for a mortgage of $412,506 using standard underwriting criteria.

Interest Rates will likely fluctuate in the short-term based on what’s happening globally. But before long, experts project rates will renew their climb. If you’re in the market to buy a home, doing so before rates start to rise again may be your most affordable option.

With interest rates inching upward, and experts expecting further rate increases on the horizon, motivated buyers are hoping to lock in their home purchases to take advantage of what are still historically low rates. But even in a market like we have now, working with an agent to set the right asking price is critical, as pricing it too high or too low could have a negative impact on your final sale.

If you or someone you know is looking to buy or sell a home please give us a call 760-766-6093.