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

Statistical Tables

Summertime!

And the living ain't easy. It's been over 100° for the past two weeks and the air conditioning is running constantly. Of course, it's a dry heat! LOL.

On the other hand, property sales have been downright COLD!

Sales of single-family, re-sale homes are down 35.8% for the year, while attached homes/condo sales are off 27.9%.

A good part of the reason for the drop off in sales is due to the drop in value of the loonie. After reaching near parity a couple of years ago, the Canadian dollar plunged to $0.89 in March. That took a lot of buyers off the playing field. It has since rebounded to over $0.93, but it will have to go higher if we expect Canadians to begin buying again.

We'll have to wait until next season to see.

May Statistics

Trends at a Glance
(Single-family Homes)
Data May 14 Apr 14 May 13
Median Price: $368,500 $345,000 $299,900
Average Price: $566,869 $532,448 $424,456
Home Sales: 566 571 931
Sale/List Price Ratio: 95.0% 95.1% 96.0%
Days on Market: 104 95 92
(Attached Homes)
Data May 14 Apr 14 May 13
Median Price: $265,000 $279,500 $210,000
Average Price: $288,057 $292,763 $222,498
Home Sales: 262 303 409
Sale/List Price Ratio: 95.4% 95.6% 96.3%
Days on Market: 106 99 105

The median price for single-family, re-sale home was up 22.9% year-over-year. That is the twenty-sixth month in a row the median price has been higher than the year before.

Sales of single-family, re-sale homes fell 39.2% last month compared to May 2013. That's eight months in a row home sales have been lower than the year before. Pretty much the whole season.

Attached homes and condo sales were off 35.9% year-over-year.

The median price for attached homes and condos was down 5.2% from April, but it was up 26.2% year-over-year.

Since January 2013, the 3-month moving average median price is up 41.6% for attached homes. It is up 76% from the bottom of the market which was in October 2011.

Desert Price Differences
from January 2013 & Peak & Trough
Homes: detached      
YTD Peak % Trough % Peak Trough
3-month 17.0% -23.2% 112.8% Jun-07 Apr-09
12-month 16.3% -26.7% 80.4% Nov-07 Nov-09
Homes: attached      
3-month 41.6% -26.8% 76.0% Mar-06 Oct-11
12-month 23.3% -33.7% 36.5% Jun-06 May-12
The 3-month moving average median price for detached homes is up 17% from January 2013. The median price has bounced up 112.8% from the bottom of the market, but is still down 23.2% from the peak.

Sales momentum…

for homes plummeted 8.6 points to  -21.3. Sales momentum for condos dropped 8.7 points to -2.5. (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 0.1 of a point to  +22.7. Pricing momentum for attached homes gained 0.9 of a point to +17.3.

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 $500,000, but are surging in the above $1,000,000 segment of the market.

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 9.3% 1.5% 1.8%
Home Sales
Percent Change From Year Before
  <$500K >=$500K and <$1MM >=$1MM
2000 25.0% 68.8% 72.7%
2001 -15.5% -9.6% -10.5%
2002 12.4% 35.2% 9.8%
2003 12.1% 67.3% 32.1%
2004 34.5% 114.1% 121.6%
2005 -21.6% 19.6% 49.4%
2006 -28.4% -31.1% 15.9%
2007 -26.5% -7.2% -19.7%
2008 13.8% -28.1% -14.0%
2009 103.5% -42.8% -59.2%
2010 -7.5% 60.2% 53.8%
2011 10.7% 9.4% -11.4%
2012 4.2% 1.2% 38.5%
2013 10.8% 55.2% 4.0%
2014 -43.8% -15.8% 35.7%

The median price for the under $500,000 segment of the market was up 10.4% year-over-year in May. This segment constituted 66.4% of sales in May.

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

By contrast, the $500,000 to $1,000,000 segment of the market was 22.4% of sales last month. The median price was up 8.3% year-over-year in May.

Palm Springs area home sales and prices

The million dollar plus market was 11.3% of total sales in May. The median price for this segment of the market was up 16.4% 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
May 2014
  Homes     Change from last year Change from last month
Area Median Average Sales MedY AveY SalesY MedM AveM SalesM
Combined $368,500 $566,869 566 22.9% 33.6% -39.2% 6.8% 6.5% -0.9%
Palm Springs $467,000 $605,422 82 -0.6% 12.0% -50.3% -11.0% 6.9% 9.3%
Palm Desert $392,000 $673,731 81 18.8% 49.5% -17.3% 3.0% 21.7% 15.7%
La Quinta $600,000 $734,802 109 24.7% 32.2% -35.5% 8.0% -8.0% 4.8%
Indian Wells $1,262,500 $1,662,841 22 46.8% 48.9% -26.7% 22.0% 11.6% 0.0%
Rancho Mirage $660,000 $811,737 54 14.7% 25.2% -20.6% -4.6% -4.7% 17.4%
Cathedral City $240,400 $263,845 56 6.8% 13.2% -45.1% 6.8% 10.9% -18.8%
Indio $244,250 $277,384 72 1.8% 4.7% -33.9% -7.0% -9.5% -16.3%
Desert Hot Springs $144,500 $149,920 50 20.4% 17.2% -52.4% -9.7% -7.4% -3.8%
Sun City - PD $342,000 $356,006 33 4.6% 4.9% -17.5% 1.7% 1.5% 22.2%
Bermuda Dunes $298,500 $304,314 7 -9.5% -19.5% -41.7% -14.2% -20.6% -56.3%
This table provides the median price, the average price and the number of units sold for residential re-sale condominiums.

Desert Condo/Attached Statistics
May 2014
  Condos     Change from last year Change from last month
Area Median Average Sales MedY AveY SalesY MedM AveM SalesM
Combined $265,000 $288,057 262 26.2% 29.5% -35.9% -5.2% -1.6% -13.5%
Palm Springs $205,000 $239,377 91 13.9% 23.7% -42.4% -13.1% -8.3% -5.2%
Palm Desert $278,351 $303,185 80 25.1% 29.0% -24.5% -2.0% -2.2% -26.6%
La Quinta $395,000 $406,498 25 32.1% 27.8% -32.4% 12.9% 11.0% -13.8%
Indian Wells $377,500 $373,564 14 8.2% 0.1% 55.6% 0.0% -2.6% 40.0%
Rancho Mirage $384,000 $368,428 29 42.2% 22.6% -35.6% 35.0% 14.5% -23.7%
Cathedral City $130,000 $136,500 15 16.1% 15.7% -40.0% 0.0% -21.0% 15.4%
Indio $175,000 $201,333 3 14.0% 23.6% -75.0% 110.8% 109.4% -40.0%
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.