Palm Springs Housing Market Continues Improvement

Palm Springs Housing Market Continues Improvement: There is no question the housing market has been in an upward slope over the past several months.  While the economy is very slowly improving, the real estate market is warming up at a much quicker pace.  This is especially true for Coachella Valley, as a new report from MDA DataQuick shows that prices and sales are rising.

There was a large increase in the median sales price along with the amount of homes sold.  In that month the median sales price of new and single-family homes rose by 11 percent.  With this, the average price for homes in that category increased to around $200,000, which was $20,000 higher than in February of 2009.  Home sales saw an increase of 9.4 percent compared to last year in February.

As mentioned, this was not a sudden turn for the best as sales have been increasing for months now.  In fact, they have been outpacing sales from last year every month since October with sales volume increases of 31 percent in November, 29 percent in December and 22 percent in January.

There are countless reasons for home buyers to take advantage of the Palm Springs housing market today, which has contributed to the drastic increase in numbers.  Greg Berkemer, executive vice president of California Desert Association of Realtors in Coachella Valley says the numbers are indicative of the market recovering from rock-bottom.  He says buyers are finally taking advantage of the best price margins.

One thing in particular that has given people a reason to look into purchasing a home is a recent action by the California Legislature, which is providing relief for homeowners who have mortgage modifications, lost their homes to foreclosure or sold their houses for less than they owed on their mortgage.  This has helped increase the short-sale activity.

As many are aware of, the $10,000 state tax credit for new and existing home buyers has already and will continue to spur sales through 2010.  New home sales at a median of $259,759 were down just 5 percent from last year in January.  However, February saw new home sales representing a gain of 21 percent over the year before with the median at $278,750.

While new and single-family home sales has been increasing, so too are luxury real estate homes in Coachella Valley.  DataQuick reported one home sold for a whopping $6.7 million in Palm Desert in February while six other homes were sold above the $1 million mark.  While it has certainly been a good sign seeing these numbers continuously improve, it is still not time to get overly excited says an associate broker in Indian Wells and president of the Palm Springs Regional Association of Realtors. 

He believes property on the low end of the spectrum is what is really selling.  Because of the fact that inventory is reducing, the median is little by little beginning to creep up.  However, mid-priced homes are still facing a tough market. 

So while people are actually looking to buy again, the $300,000 to $500,000 range is still a troubling time.  Not only are prices out of whack, but so too are sales within this median price range. 

Another worry for those in the real estate industry is summer that is approaching.  Typically, with warmer weather the sales begin to drop as the tourist season dissipates.  While the winter saw tremendous numbers, many are anxious to see how the median price and sales in general hold up over summer. 

If you would like to see property in the Palm Springs Housing Market, please call us at the numbers below. Were committed to helping you find the home of your dreams.

With over 20 years of experience in the Real Estate market,  Elaine truly enjoys helping people in the process of buying or selling a home.

Elaine Stewart - Remax Real Estate
(760) 668-2399 Mobile 
(760) 391-4415 Office
Desertrealestate1@yahoo.com