As the summer draws to a close, multiple opposing factors and trends are competing to define the direction of the real estate market. After the US Federal Reserve lowered benchmark interest rate for the first time in a decade, mortgage rates have come down approaching historically low levels not seen + 10.3% – 1.8% since 2016. Although home refinancing have jumped up and consumer confidence in housing is increasing, lack of affordable inventory continue to affect first-time home buyers and limit the increases in new sales.
As many homeowners refinanced their homes to take advantage of declining interest rates, consumer confidence in housing was reported to be at historically high levels.
In September 1st the “months of sales” ratio, which is inventory divided by the average sales rate over 12 months, was 3.3 months, which is equal to the ratio on September 1st of last year. This is the lowest September inventory number in over five years.
On a city by city basis we continue to see strong, 12-month price increases for detached homes. Palm Springs continues to lead and amaze. The median price for detached homes in Palm Springs is now $659,000, almost 10% above the all-time high made during the bubble years of the first part of this century.
Palm Springs Real Estate Market August 2019 Highlights:
- The median price for detached homes in Palm Springs was up 14.2 percent.
- The median price for attached homes in Cathedral City was up 19.7 percent.
- Inventory increased 23.7 percent in Rancho Mirage
- Inventory increased 17.0 percent in Indian Wells
- The median price for attached homes in Palm Desert was up 6.8 percent.
- The median price for attached homes in La Quinta was down 5.8 percent
- The median price for attached homes in Indio was down 7.0 percent.
- Inventory increased 33.3 percent, the median price for attached home decreased 7.0 percent in Desert Hot Springs
- The median price for detached homes in Coachella was up 14.2 percent.