Palm Springs is a city in California that attracts many tourists and investors with its desert hot springs, golf courses, and mid-century modern architecture. It is also a popular destination for people who want to escape from big cities and enjoy a sunny and relaxing lifestyle. But how is the Palm Springs housing market performing in 2023? What are the current trends and challenges for buyers and sellers? And what are the best opportunities and strategies to succeed in this market? In this article, we will answer these questions and more.
Palm Springs Housing Market Overview:
The Palm Springs housing market is somewhat competitive, with homes receiving an average of two offers and selling 1.87% below the asking price. The median sale price of a home in Palm Springs was $513K in September 2023, down 11.6% since last year. The median sale price per square foot was $402, down 4.4% since last year. However, the number of homes sold increased by 35% for single-family homes and 39% for condos compared to last year. The average days on market was 77, which is slightly higher than the national average of 70.
The Palm Springs housing market is influenced by several factors that make it unique and attractive. One of them is the migration trend away from big cities, especially during the pandemic. Many people are looking for more space, privacy, and affordability in less populated areas, and Palm Springs offers all of that. Another factor is the renewed interest in investing in second homes or vacation properties, as Palm Springs is one of the top destinations in California for leisure and entertainment.
Palm Springs Housing Market Challenges:
Despite the strong demand, the Palm Springs housing market also faces some challenges that may affect buyers and sellers. One of them is the rise in interest rates, which have increased from under 3.0% in 2021 to around 7.0% in 2023. This has created a dual issue: fewer buyers who can afford to buy a home, and fewer sellers who are willing to sell their home and take on a new loan at a higher interest rate. This may result in a slowdown in the movement of homes and a decline in home prices.
Another challenge is the uncertainty caused by the pandemic and its variants, which may affect the travel and tourism industry that supports the Palm Springs economy. If there are new restrictions or lockdowns, this may reduce the number of visitors and investors who are interested in buying or renting properties in Palm Springs. This may also affect the income and confidence of local residents who depend on tourism-related jobs.
Palm Springs Housing Market Opportunities:
Despite the challenges, there are also opportunities for buyers and sellers who are savvy and flexible. For buyers who are looking for a primary residence or a second home, they should consider factors such as budget, lifestyle, and future plans. They should also look for properties that offer value, quality, and convenience. For example, they may find bargains in some of the most affordable neighborhoods in Palm Springs, such as Racquet Club West, where the median listing home price is $209.9K. They may also find properties that have desirable features such as pools, garages, or views.
For sellers who are looking to sell their property, they should consider factors such as timing, pricing, and marketing. They should also look for ways to make their property stand out from the competition and attract multiple offers. For example, they may invest in some upgrades or repairs that can increase the appeal and value of their property. They may also use professional photography and staging to showcase their property online.
For both buyers and sellers, they should also consult with a professional real estate agent who can help them navigate the Palm Springs housing market and achieve their desired outcomes.
The Palm Springs housing market is dynamic and attractive, offering a range of options and opportunities for buyers and sellers. The market is influenced by various factors, such as migration trends, investment trends, and appreciation potential. However, with the right strategy and guidance, both buyers and sellers can find success in the Palm Springs housing market.