Palm Springs has been called “the world’s happiest city” because of its warm weather, beautiful scenery, and friendly people. It also has a thriving real estate market. The median home price in Palm Springs is $1.2 million, making it one of the most expensive cities in Coachella Valley, California.
With such high prices, it’s understandable that buyers would want to find homes at affordable rates. However, there are several factors that could affect the housing market in Palm Springs.
Let’s discuss these trends below and explain why they’re affecting the Palm Springs real estate market.
1: A Growing Population
The population of Palm Springs is growing rapidly. In fact, it grew by more than 2% from 2010-2014. This growth rate is much higher than the national average. As a result, demand for housing is increasing.
2: More People Moving To Palm Springs
In 2014 alone, more than 1,400 new residents moved into Palm Springs. That number was up from about 900 in 2013. Many of them were retirees who bought second homes here. Palm Springs is a desert resort town located in Riverside County California. During the winter months, the population increases threefold.
3: Increased Number of Homes for Sale
Palm Springs home sales have increased every year since 2009. They hit their highest point in 2011 when about 4,000 homes were sold. Since then, sales have dropped slightly but still remain above 3,500 per year.
4: Low Housing Inventory
There are currently only about 5,300 houses for sale on the market. That’s down from 7,200 in 2012. There are fewer homes available now than ever before.
5: High Demand For Homes
Demand for homes in Palm Springs continues to be strong. Buyers are willing to pay top dollar for properties with great views or proximity to golf courses. In addition, the large number of tourists who visit Palm Springs, especially during the winter months, due to the warm and mild climate and the winter sun, brings a lot of money to local Airbnb rental properties.
6: Fewer Foreclosures
Foreclosure activity is declining. About half as many foreclosed Palm Springs homes are being listed in 2015 compared to last year.
7: Higher Prices
Prices continue to rise. The median property price is about $1.2 million. That’s an increase of 6% over the past year in real estate price, that’s above the California real estate appreciation rate, and significantly above the national average home price. This means an above-average return! This makes the desert oasis a great real estate investing community.
8: Abundance of Options to Make an Affordable Option
Affordable housing options are becoming increasingly scarce. Developers are building fewer condos and townhomes. Instead, they’re focusing on single-family homes.
9: Rising Mortgage Interest Rates
Interest rates are rising in Palm Springs. Mortgage interest rates are expected to go up again this month. If you plan to buy a house soon, make sure you shop around for the best mortgage deal.
10: Lower Property Taxes
Property taxes are lower than they’ve ever been. Last year, property tax bills went down by nearly 10%.
The Best Time to Purchase a Home in Palm Springs CA
If you’re thinking about buying a home in Palm Springs, there’s no better time than right now. With so few homes on the market, you’ll get the best possible deal with a potential real estate appreciation rate. You can save thousands of dollars by purchasing your dream home today.
However, if you wait too long, you may not find what you’re looking for. When the Palm Springs housing market starts picking up steam, sellers will start putting their homes on the market. At that point, competition will heat up and you’ll need to be prepared to jump in quickly. Remember, this desert city is a fantastic real estate investing community!
You should consider buying a home in an affordable city that offers a good return on investment and favorable conditions for buyers. The winter sun during the winter months is a bonus!
When Should I Sell My House?
You don’t necessarily have to sell your current Palm Springs home immediately after buying another one. Selling your old home first gives you some breathing room while you search for the perfect place to live.
However, you should know that if you take longer than six months to sell your home, you’ll lose money which means no good return on investment. So, you might want to consider selling sooner rather than later.
The Best Neighborhoods in Palm Springs CA
It doesn’t matter where you decide to move to Palm Springs; you’ll enjoy living in any neighborhood. But certain areas offer more benefits than others. Here are some of the best neighborhoods.
1) North Palm Canyon Drive
This area offers easy access to downtown Palm Springs. It’s close to shopping centers, restaurants, and other amenities. Plus, it’s just minutes away from the airport. This is one of the safest places to live in Palm Springs.
2) West Desert
This area is located west of Palm Canyon Drive. Residents of Palm Springs enjoy walking trails, open spaces, and plenty of green space. It’s also close to the airport.
3) Saguaro Road
Palm Springs residents love Saguaro Road because of its convenient location near the airport, shopping malls, and schools. Plus, it’s close to hiking and biking trails. The desert city is popular for beautiful single-family homes, vacation homes, and rental investment properties or rental property. Palm Springs is a famous city in the Coachella Valley area in Riverside County during two extreme seasons – summer months and winter months!
Harcourts Desert Homes has been providing exceptional service to home buyers and sellers in Palm Springs for many years. Our team of experienced real estate experts works closely with you every step of the way to ensure that you get the right advice and support throughout the buying or selling process. We understand that buying or selling a house can be stressful and confusing. That’s why we provide a comprehensive range of services designed to make the whole experience easier and less stressful. Contact us today to learn more about our services!