The Desert Real Estate Market Trends Report for Palm Springs, Palm Desert, Rancho Mirage, Indian Wells, La Quinta and Cathedral City.

Statistical Tables

Quantitative Easing and Mortgage Rates

The Federal Reserve has ended quantitative easing, again. What does that mean for mortgage rates?

For the moment, nothing. The Fed isn’t expected to raise short term interest rates until the middle of next year.

Also, the Fed has a very limited ability to affect long-term interest rates.

Plus, the dollar reached a four-year high recently. Why? Because the economies of other countries around the world are still moribund and that means money is pouring into the United States keeping interest rates low.

We don’t expect that to change for a couple of years.

October Statistics

Trends at a Glance
(Single-family Homes)
Data Oct 14 Sep 14 Oct 13
Median Price: $335,000 $318,000 $299,000
Average Price: $423,662 $447,046 $440,860
Home Sales: 347 324 418
Sale/List Price Ratio: 96.4% 96.1% 96.5%
Days on Market: 115 137 87
(Attached Homes)
Data Oct 14 Sep 14 Oct 13
Median Price: $200,000 $240,000 $185,450
Average Price: $236,387 $257,486 $221,902
Home Sales: 168 155 170
Sale/List Price Ratio: 95.8% 95.5% 96.2%
Days on Market: 117 136 83

The median price for single-family, re-sale home was up 12% year-over-year. That is the thirty-first month in a row the median price has been higher than the year before.

Sales of single-family, re-sale homes fell 17% last month compared to October 2013. That's thirteen months in a row home sales have been lower than the year before. Year-to-date, home sales are down 35.5%.

Attached homes and condo sales were off 1.2% year-over-year. Year-to-date, sales are down 30.6%.

The median price for attached homes and condos was down 16.7% from September, but it was up 7.8% year-over-year.

Since January 2014, the 3-month moving average median price is down 5.5% for attached homes. It is up 46.3% from the bottom of the market which was in October 2011.

Desert Price Differences
from January 2014 & Peak & Trough
Homes: detached      
YTD Peak % Trough % Peak Trough
3-month -1.9% -28.3% 98.8% Jun-07 Apr-09
12-month 6.7% -23.1% 89.2% Nov-07 Nov-09
Homes: attached      
3-month -5.5% -39.1% 46.3% Mar-06 Oct-11
12-month 10.3% -29.0% 46.1% Jun-06 May-12
The 3-month moving average median price for detached homes is down 1.9% from January 2014. The median price has bounced up 98.8% from the bottom of the market, but is still down 28.3% from the peak.

Sales momentum…

for homes rose 3.0 points to  -50.2. Sales momentum for condos gained 1.6 points to -35.5. (See charts below)

We calculate…

momentum by using a 12-month moving average to eliminate seasonality. By comparing this year’s 12-month moving average to last year’s, we get a percentage showing market momentum.  

In the chart below…

the blue area shows momentum for home sales while the red line shows momentum for the median price.

Pricing momentum…

for homes fell one point to  +17. Pricing momentum for attached homes fell 0.2 of a point to +18.7.

Palm Springs Area Real Estate Market Momentum Chart

Palm Springs area real estate condo sales momentum

This is an extraordinarily tough market for buyers. It’s important to be calm and realistic. If you don’t know what to do or where to begin, give me a call and let’s discuss your situation and your options.

Palm Springs area real estate

As you can see by the following charts, the largest swings in prices has been in the under $500K segment of the market. Above that, pricing has been pretty stable. Sales, on the other hand, have been abysmal under $1,000,000.

Median Prices
Percent Change From Year Before
  <$500K >=$500K and <$1MM >=$1MM
2000 12.7% 1.0% 0.0%
2001 14.5% 1.2% -3.8%
2002 18.3% -3.9% 0.0%
2003 13.8% 3.3% -3.2%
2004 23.4% 2.4% -1.1%
2005 16.9% 3.1% 3.0%
2006 0.1% -0.8% 2.6%
2007 -1.6% 1.5% 1.8%
2008 -33.8% -2.2% 7.9%
2009 -26.7% -1.5% -8.9%
2010 9.8% 0.0% -0.9%
2011 -8.9% -1.5% -1.8%
2012 16.4% -0.8% -1.8%
2013 24.1% 2.4% 3.3%
2014 11.2% 0.8% 0.4%
Home Sales
Percent Change From Year Before
  <$500K >=$500K and <$1MM >=$1MM
2000 12.2% 39.9% 62.1%
2001 -15.8% -3.0% -22.4%
2002 23.1% 47.7% 19.3%
2003 9.4% 61.0% 39.4%
2004 22.6% 116.9% 144.2%
2005 -18.1% 10.1% 55.5%
2006 -31.6% -31.5% 1.7%
2007 -29.8% -10.8% -21.6%
2008 49.6% -25.3% -19.1%
2009 66.9% -31.2% -50.9%
2010 -11.2% 33.0% 53.0%
2011 19.4% 2.7% -10.2%
2012 -3.1% 7.4% 25.9%
2013 8.3% 61.5% 28.6%
2014 -42.9% -22.1% 1.9%

The median price for the under $500,000 segment of the market was up 12.4% year-over-year in October. This segment constituted 75.5% of sales.

Palm Springs area home sales and prices under $500,000

By contrast, the $500,000 to $1,000,000 segment of the market was 21.3% of sales last month. The median price was up 11.9% year-over-year in October.

Palm Springs area home sales and prices

The million dollar plus market was 6.8% of total sales in October. The median price for this segment of the market was up 11.9% year-over-year.

See our Annual Report for year-end numbers.

Palm Springs are $1MM home sales and prices

The graphs below show monthly prices and sales since 2005. We have used a three month moving average to smooth out monthly fluctuations yet retain seasonal flow.

This chart show the number of homes sold plus the median and average prices since 2005.

This chart show the number of condos sold plus the median and average prices since 2005.

For full details see the tables below and the Monthly Trends section which breaks out each city's statistics. That menu is at the left.

Also, check out our Annual Trends section for charts and graphs for the past eight years.

The following table provides the median price, the average price and the number of units sold for residential re-sale single family homes.

Monthly Statistics

Desert Home Statistics
September 2014
  Homes     Change from last year Change from last month
Area Median Average Sales MedY AveY SalesY MedM AveM SalesM
Combined $318,000 $447,046 324 15.6% 13.8% -40.3% -10.9% -7.8% -14.3%
Palm Springs $559,500 $620,324 52 16.6% 14.8% -46.9% 1.1% 1.8% -21.2%
Palm Desert $329,000 $435,022 30 -2.7% 19.8% -43.4% -16.2% -22.6% -28.6%
La Quinta $336,950 $448,324 64 -11.3% -13.4% -31.2% -18.8% -17.6% -16.9%
Indian Wells $665,000 $910,444 9 -18.4% -25.2% 12.5% 15.7% 1.1% -30.8%
Rancho Mirage $530,000 $764,946 27 -1.7% 8.4% -30.8% -18.0% -4.0% -20.6%
Cathedral City $240,000 $249,387 45 8.8% 8.0% -22.4% -1.0% -3.9% 28.6%
Indio $279,000 $411,993 43 18.8% 57.9% -51.1% 16.3% 45.6% -4.4%
Desert Hot Springs $142,500 $136,779 28 1.9% -7.6% -56.9% -6.9% -13.4% 3.7%
Sun City - PD $320,113 $330,455 16 -1.5% -1.7% 23.1% -5.6% -1.0% -44.8%
Bermuda Dunes $375,000 $416,889 9 8.4% 18.0% 50.0% -1.3% 13.2% 28.6%
This table provides the median price, the average price and the number of units sold for residential re-sale condominiums.

Desert Condo/Attached Statistics
September 2014
  Condos     Change from last year Change from last month
Area Median Average Sales MedY AveY SalesY MedM AveM SalesM
Combined $240,000 $257,486 155 14.3% 16.0% -30.8% 1.3% 0.3% 3.3%
Palm Springs $218,250 $238,265 72 18.0% 19.1% -31.4% 13.1% 16.3% 46.9%
Palm Desert $250,000 $275,266 41 11.1% 18.8% -32.8% -5.7% -1.7% -4.7%
La Quinta $415,000 $353,286 7 33.5% 7.2% -41.7% 20.3% -27.5% -53.3%
Indian Wells $389,900 $394,633 3 -34.8% -30.0% -25.0% 16.4% 32.0% -57.1%
Rancho Mirage $322,500 $320,947 19 37.2% 30.7% -17.4% 17.3% 13.1% 11.8%
Cathedral City $142,000 $147,249 10 9.2% 8.3% -23.1% 24.6% 21.8% -23.1%
Indio $99,000 $99,000 2 16.3% -30.8% -60.0% -45.0% -45.0% 100.0%
Desert Hot Springs n/a n/a n/a n/a n/a n/a n/a n/a n/a
If we can help you devise a strategy, call or click buyer or seller.  To keep on top of the market, subscribe to this report and you will be notified by e-mail when it is updated each month.

The Graphs

Trend charts for individual cities can be reached by clicking on the City Trends menu to the left.

For detailed information on a specific neighborhood or country club, give Greg Bauer a call at (800) 975-7720, or fill out the appropriate form: Buyers or Sellers.

For our opinion of what your home will sell for in today's market, call or e-mail us.