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

Statistical Tables

Palm Springs Area Home Sales in a Slump

Year-to-date, sales of single-family, re-sale homes are down 36.6%. We haven't seen this few homes sold since 2008.

So what's going on?

First, the Canadian dollar has lost about 15% of its buying power in the last 18 months. Mind you, this has nothing to do with the Canadian economy. It has to do with all the countries in the world buying up American dollars. The American dollar is up against almost every other currency in the world. So, our foreign buyers have left the market.

Tack on the uncertainty in this year's election, people are reticent, hesitant and just plain staying on the sidelines.

Although sales are down, prices continue to increase by double-digits, year-over-year.

September Statistics

Trends at a Glance
(Single-family Homes)
Data Sep 14 Aug 14 Sep 13
Median Price: $318,000 $356,880 $275,000
Average Price: $447,046 $485,073 $392,937
Home Sales: 324 378 543
Sale/List Price Ratio: 96.1% 95.7% 95.1%
Days on Market: 137 104 88
(Attached Homes)
Data Sep 14 Aug 14 Sep 13
Median Price: $240,000 $237,000 $210,000
Average Price: $257,486 $256,717 $222,048
Home Sales: 155 150 224
Sale/List Price Ratio: 95.5% 95.3% 96.1%
Days on Market: 136 122 95

The median price for single-family, re-sale home was up 15.6% year-over-year. That is the thirtieth month in a row the median price has been higher than the year before.

Sales of single-family, re-sale homes fell 40.3% last month compared to September 2013. That's twelve months in a row home sales have been lower than the year before. Year-to-date, home sales are down 36.6%.

Attached homes and condo sales were off 30.8% year-over-year. Year-to-date, sales are down 32.3%.

The median price for attached homes and condos was up 1.3% from August, and it was up 14.3% year-over-year.

Since January 2014, the 3-month moving average median price is up 3.3% for attached homes. It is up 59.9% 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 -1.6% -27.9% 99.8% Jun-07 Apr-09
12-month 6.0% -23.8% 87.5% Nov-07 Nov-09
Homes: attached      
3-month 3.3% -33.5% 59.9% Mar-06 Oct-11
12-month 9.8% -29.4% 45.3% Jun-06 May-12
The 3-month moving average median price for detached homes is down 1.6% from January 2014. The median price has bounced up 99.8% from the bottom of the market, but is still down 27.9% from the peak.

Sales momentum…

for homes dropped 3.6 points to  -50.4. Sales momentum for condos dropped 6.8 points to -37.1. (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 0.3 of a point to  +18.1. Pricing momentum for attached homes fell 0.3 of a point to +18.9.

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% 0.0% 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 6.8% year-over-year in September. This segment constituted 71.6% 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 21.6% of sales last month. The median price was up 4% year-over-year in September.

Palm Springs area home sales and prices

The million dollar plus market was 6.8% of total sales in September. The median price for this segment of the market was up 8.9% 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
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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.