When ever I am attending a dinner party or out for cocktails with friends, there are several topics that are usually off limits: Politics and Religion.

But when I meet someone new and they find out that I am a REALTOR, then the barrage of questions comes flooding in. Some of them go like this:

1. “What is the difference between a short sale and a foreclosure?”
2. “Do you think the Palm Springs Real Market has hit the bottom?”
3. “What is happening with Port Lawrence?”
4. “Do you think it’s good time to buy?”

I will usually answer these questions this way:

1. How much time do you have for an explanation?
2. The answer is yes.
3. Check out my blog, Blog of the Desert, and read my article on Port Lawrence.
4. The answer is absolutely!!

The number one question that I get asked by everyone is: “What homes are selling in Palm Springs?”

As you can see on the chart, there have been 292 single family homes sold YTD in the city of Palm Springs, with an average days on market of 109 days.

To answer everyone’s question, “What is selling in Palm Springs?”, here it is: Homes in the $250,000 to under $300,000 have been the top sellers in the real estate market in Palm Springs. In the last 6 months, there have been 42 homes in this price range that have sold, with average time on the market of 93 days. A very close second place has been the $350,000 to under $400,000 price range, in which 39 homes have been sold.

Many of these homes represent the short-sale (pre-foreclosure) and foreclosed homes that have been flooding the real estate market. Savvy buyers have been purchasing these homes at bargain basement prices, and will reap the benefits as long as they keep the home for a minimum of 5 years.

So what do these number mean to the potential Palm Springs home buyers and sellers?

Let’s take another look at the chart. Say you are selling your home in Palm Springs, and it is priced at $649,500. According to the data, homes in the price range of $600,000-$649,999 have an average time on the market of 159 days and 11 homes have sold in the 6 month time frame.

During the same time frame, 16 homes sold in the $549,000-$599,999 price range and were only on the market for an average of 85 days. As a seller, you need to really look at the numbers and price your home according to the current market data or it will just sit on the market.

For you buyers, I have some pearls of wisdom that you need to share with you as well. The chart to the right represents the total condo sales in Palm Springs for the last 6 months. There were a total of 362 condos that have sold, with an average time on the market of 144 days.

The $200,000-$249,999 price range did very well YTD, with a total of 77 condos sold.

Many people think that the days of multiple offers are a thing of the past. This is simply not true. If homes and condos are priced aggressively, the onslaught of multiple offers will occur.

For instance, my client wanted to place an offer on a mid-century modern home that was priced at $285,000. I knew that this home would sell quickly, so I informed my client that they needed to be aggressive with their offer. We made an offer of $295,000, $10k over the asking price, with a closing in 30 days. To our surprise, we were turned down. It turns out the winning offer was $285,000 cash, and a close of escrow in 10 days.

The moral of the story: Homes are selling in Palm Springs, News at 11. For the buyers, now is the time to take advantage of some of the lowest home prices that the Coachella Valley has seen in a very long time. If you wait for “the bottom to hit”, you are already too late. For the Palm Springs home sellers, the numbers don’t lie. Home prices have gone down. If you want your home to sell, you need to price your home aggressively.

Same article posted at Blog of the Desert

About the Author:

Harold Watts of Lyle Realtors has been a REALTOR in Palm Springs since 1999.  Focusing on the 2nd & Vacation home market, Harold has been helping Real Estate Buyers and Sellers achieve their real estate goals.   If you want to know what is happening with the Palm Springs Real Estate market, give Harold Watts a call at 760-778-6200 or email him at Harold@LyleRealtors.com