The Palm Springs real estate market continues to serve as the jewel of the Coachella Valley. Tucked behind the peaks of San Jacinto, Palm Springs is a popular destination for those looking to escape the cold of the Northeast. That said, it is not your typical Southern California market. It is a popular retirement community and relies heavily on tourism. Buy and hold properties are prominent, but are by no means the only source of Palm Springs real estate investing. For all intents and purposes, this community is thriving.
According to Realtor.com, who pulls data from the MLS, homes in the Palm Springs real estate market boast an average value of $190,125. However, the average sales price is considerably higher. At $417,066; the average sales price in Palm Springs is 54.4 percent higher than the actual value of the average home. Sales prices in Palm Springs are also well ahead of the national average, but that is to be expected of most California markets. Accordingly, the average home price in the state of California is just over $361,000.
Palm Springs real estate has appreciated by as much as 3.6 percent over the course of 12 months, which is lower than the national average of 6.7 percent. However, experts have already forecasted a 4.6 percent increase in the coming year. Appreciation rates are actually slow for a city in California, but Palm Springs is unique in that it doesn’t attract the same demographics as the rest of the state. In fact, many residents are property owners, and many are between the ages of 50 to 59. Palm Springs has become a sort of desert oasis for those that have retired, or are considering retirement. It would certainly benefit investors in the area to recognize that most buyers in Palm Springs fit a specific demographic.
Homes in the Palm Springs market are only a part of the 9,092,375 properties and 153,970 homes for sale in California. As a result, the average home price and average home value of Palm Springs also influence the average home price ($361,123) and average sale price ($581,732) in California. The national average, on the other hand, is approximately $205,156.
With homes selling for well above their actual value in Palm Springs, the area favors sellers. However, there are still deals to be found by determined buyers.
Not unlike the rest of California, the Palm Springs real estate market has seen appreciation chip away at the state of the foreclosure market. Over the course of 12 months, foreclosures have actually declined by as much as 28 percent. In the last month alone, distressed properties dropped 14 percent. According to RealtyTrac, there are approximately 459 homes still in some state of foreclosure in the Palm Springs real estate market (default, auction or bank-owned). As members of the Palm Springs real estate investing community are aware, these properties should continue to serve as a great source of deals!
Report courtesy of Fortune Builders.