According to the PSRAR Market Watch, in May the median price throughout the Valley was $349,000 so it hasn’t changed in the past year. However, we have seen more positive price changes on a city by city basis and the increases have been impressive. Five cities show positive, double digit gains with the City of Coachella leading the charge and up 18% from a year ago.
When we look at the average sales over the past twelve months we see that they continue to decline. With the inventory at 4,962 on June 1st, it is now only 346 units above the level of one year ago. This is encouraging since it shows the inventory problem that appeared to emerge at the start of this year’s selling season has not intensified but has actually declined. With the lack of inventory to a level only 346 units higher than last year and with sales numbers comparable to last year’s numbers, the ratio of “months of sales” on June 1st was fairly close to last year’s ratio. It’s currently 7.2 months; a year ago it was 6.6 months.
The median price of detached homes in most cities has risen from a year ago and the gains are substantial. This was somewhat unexpected a few months ago considering the massive inventory of homes that accompanied the beginning of the spring selling season. The city of Coachella and Desert Hot Springs continue to gain traction from their late emergence from the distressed selling of a few years ago. The median price in Palm Springs at $550,500 is only 8% from its all-time high of $600,000 (only 4% when measured by median price per sq. ft.).
Put my expertise to work for you – Randy Weimer – Contact me today at 760-333-7747 to discuss all of your real estate needs.