by HomeAbroad Editorial Team
11 min read
The Palm Spring real estate market has been a topic of interest for buyers and sellers in recent years. The market is subject to various volatile factors, making investments unpredictable.
However, keeping abreast of the latest developments and analyzing market trends can assist you in making informed decisions and feeling secure about your financial prospects. We are here to help with the same. Let’s jump right in!
Overview of Palm Springs
Palm Springs is a city in the Sonoran Desert of southern California. Palm Springs, CA, is known for its desert hot springs, golf courses, and mid-century modern architecture.
The city has a population of approximately 45,912 people and covers an area of 94.5 square miles.
The local economy is driven by tourism, with many visitors coming to enjoy the warm weather and outdoor activities. The city is also home to a number of high-end resorts and spas, as well as a growing number of restaurants and shops. The luxury is expanding to nearby cities too.
Palm Springs Real Estate Trends: 10 Key Statistics
- Median Palm Springs housing price is $799K, trending 6.7% upward compared to last year.
- Palm Springs’s median home price per square ft is $474.
- The median sold home price at $632k is much less than the listing price.
- The homes in Palm Springs sell 1.87% below the asking price on average as of March 2023. [1]
- As of March 2023, Palm Springs is a balanced market which means that the supply and demand of homes are generally the same.
- On average, homes in Palm Springs sell 62 days after being listed on the market. The trend for the lowest median selling time on the market has gone slightly up since last year.
- Palm Springs has 800 homes for sale. It also has 315 rentals in the price bracket of $1.3K to $45K monthly.
- Sales of single-family homes increased by 35% and 36%, respectively. [1]
- Condo sales also saw an increase of 39% and 45%, respectively. [1]
- Palm Springs has 40 neighborhoods to choose from. Old Las Palmas is the most expensive one, with a median listing home price of $3.9M. Racquet Club West is the most affordable and inexpensive neighborhood, with a median listing home price of $209.9K. [1]
Palm Springs Housing Market Trends Vs. National Housing Market Trends: 2023
Here are the trends in the Palm Springs housing market compared to the National housing market trends.
Rental Market Trends In Palm Springs, CA
A vacation rental investment in Palm Springs sounds up everyone’s alley. Well, rightly so! The average rent and rental yield in Palm Springs real estate market is sure to make your pockets heavy. Here are some key rental market trends in Palm Springs, CA:
- The average rental yield one can earn in Palm Springs is around $58,609 annually.
- Your vacation rental Airbnb can fetch you around $187 per day.
- The occupancy rate is around 67%. [6]
Places With the Best Gross Rental Yields in Palm Springs
Palm Springs Home Types: Statistical Overview
Here is a comprehensive overview of the home types and their average home prices in Palm Springs as of March 2023.
- Single-Family Homes: The median listing price of single-family homes in Palm Springs is $772,500. On average, they sold for 8% above the asking price and 94 days on the market.
- Condos: The median listing price of condos in Palm Springs is $379,950. On average, they sold for 6% below asking prices and 92 days on the market.
- Townhomes: The median listing price of townhomes in Palm Springs is $502,450. On average, they sold for 4% below asking prices and 87 days on the market.
- Multi-Family Homes: The median listing price of multi-Family homes in Palm Springs is $1,490,000. On average, they sold for 7% above asking prices and 92 days on the market.
Let us take a minute to understand the terminologies for a better grasp.
- Sale-to-list price: This term refers to the percentage of the final sale price of a property compared to its initial listing price. For example, if a home is listed for $500,000 and sells for $475,000, the sale-to-list price would be 95%. This metric is often used to evaluate the effectiveness of a real estate agent’s pricing strategy or to gauge the overall health of a real estate market.
- Home Sold Above List price: This term refers to properties that are sold for a price that is higher than their initial listing price. This can happen in a competitive real estate market where buyers are willing to pay more than the asking price to secure a property or when multiple buyers submit competing offers.
- Homes with price drop: This term refers to properties that have had their listing prices reduced after being on the market for a period of time. Price drops can occur for a variety of reasons, such as an overpriced initial listing, a change in the local real estate market, or a need for a quick sale.
Migration Statistics Palm Springs Real Estate Market
- Between January 2023 and March 2023, 18% of Palm Springs homebuyers searched to move out of Palm Springs, while 82% looked to stay within the metropolitan area. [3]
- Across the nation, 6% of homebuyers searched to move into Palm Springs from outside metros. [3]
- San Francisco homebuyers searched to move into Palm Springs more than any other metro, followed by Chicago and New York.
- Las Vegas was the most popular destination among Palm Springs homebuyers, followed by San Diego, Coachella Valley, and Phoenix.
Sales and Rentals Statistics Palm Springs Real Estate Market
- The percentage of sales over the list price is 11.1%.
- Median rent is $3,300. [4]
- Average rent is $1948 for approximately 820 square feet. [2]
- Rent in Palm Springs is 53% higher than the national median.
- 1-year appreciation rate: +3.5% [4]
Analysis Of Median Listing Home Price and Median Home Sold Price: 2020-2023
Here is a comprehensive analysis of the average home price in Palm Springs listed and the median home sold price [1]:
Housing Inventory Statistics in Palm Springs
This increase in inventory is seen as a positive sign for buyers who have been struggling to find affordable homes in a market with limited supply.
However, it is worthwhile to note that prices are often high due to strong demand and that it is sometimes too early to determine if the trend of increased inventory will continue.
For better decision-making, here is a quick overview of the housing inventory statistics in the Palm Springs real estate market.
- The housing inventory in the US has significantly increased for the first time in three years, with a 27.6% rise in the number of homes for sale compared to last year. [5]
- The increase in inventory is attributed to the rising number of new listings, which have increased by 11.1% compared to last year. [5]
Palm Springs Hottest Real Estate Markets: 10 Popular Neighborhoods
Palm Springs is home to a number of different neighborhoods, each with its own unique character and housing market trends. Some of the most popular neighborhoods with million-dollar homes in Palm Springs include:
- Old Las Palmas: A historic neighborhood known for its large estates and high-end homes. Median home prices in this neighborhood are currently around $3.9 million, with a price per square foot of $1K.
- Deepwell Estates: A mid-century modern neighborhood with a mix of homes and condos. Median home prices in this neighborhood are currently around $1.8 million, with a price per square foot of $627.
- Indian Canyons: A golf course community with a mix of modern and traditional homes. Median home prices in this neighborhood are currently around $1.9 million, with a price per square foot of $612.
- The Mesa: A secluded and upscale neighborhood located in the foothills of the San Jacinto Mountains. Median home prices in this neighborhood are currently around $1.9 million, with a price per square foot of $1K.
- Racquet Club Estates: A mid-century modern neighborhood located in the north end of Palm Springs. Median home prices in this neighborhood are currently around $1.1 million, with a price per square foot of $726.
- Movie Colony: A historic neighborhood that was home to many Hollywood stars during the golden age of cinema. Median home prices in this neighborhood are currently around $2.8 million, with a price per square foot of $876.
- Vista Las Palmas: An upscale neighborhood located in the north end of Palm Springs. Median home prices in this neighborhood are currently around $2.3 million, with a price per square foot of $911.
- Sunrise Park: A centrally located neighborhood known for its spacious homes and large lots. Median home prices in this neighborhood are currently around $1.5 million, with a price per square foot of $670.
- Downtown Palm Springs: A vibrant and lively neighborhood with a mix of historic architecture and modern amenities. Median home prices in this neighborhood are currently around $252.5K, with a price per square foot of $450.
- Andreas Hills: An upscale neighborhood located in the foothills of the San Jacinto Mountains. Median home prices in this neighborhood are currently around $2.2 million, with a price per square foot of $509.
Palm Springs Budget-Friendly Neighborhoods
Here are some options with low average home prices in Palm Springs:
- Auville: A budget-friendly neighborhood located near downtown Palm Springs, with a median price of $245K.
- Sunmor Estates: An affordable neighborhood located east of downtown Palm Springs, with an average home price of $215K.
- Canyon Country Club Estates: Located in the north end of Palm Springs, this neighborhood has an average home price of $220K.
- Racquet Club West: A popular mid-century modern neighborhood located in Southauville. A budget-friendly neighborhood located near downtown Palm Springs, with an average home price of $245K.
- Deepwell Ranch Estates: An affordable neighborhood in south Palm Springs, with an average home price of $195K.
- Racquet Club East: Another mid-century modern neighborhood with an average home price of $200.
- Vista Chino: An affordable neighborhood located east of downtown Palm Springs, with an average home price of $190K.
Decline in Home Prices and Sales In Palm Springs
Despite the overall positive trends in the Palm Springs real estate market, there has been a recent decline in home prices and sales activity.
- According to data and analysis from The Palm Springs Post, home sales in Palm Springs decreased in the beginning of 2023, compared to the same period in the previous year.
- Possible reasons for lower sales include oversupply, rising interest rates, and concerns about the global economy.
- Some experts also believe that the recent decline is simply a correction in the market after several years of rapid growth.
Palm Springs Real Estate Forecast: What Will Happen In 2023?
- Palm Springs, like the rest of California and the country, will see a cooling trend in 2023, resulting in a slower rate of price increases despite prices remaining high.
- The slowdown is evident in the offers made for detached homes, with buyers paying 4.8% above the asking price compared to 5.2% in May 2022. [5]
- The fall and winter trends will also contribute to the market’s slowing down. As the market slows down, inventory will increase, creating more opportunities for buyers, but it will take time to reach normal levels.
- Buyers may face difficulties due to increasing mortgage rates and inflation. Although sellers will still benefit from a seller’s market, they should be aware of how market conditions may change in 2023. [5]
Buying Or Selling Properties In Palm Springs? Here’s What Buyers And Sellers Can Expect In 2023
If you are interested in buying properties in Palm Springs in 2023, here is what you need to know:
- Increasing inventory will help diffuse competition
- Slow increase in home prices in the area
- Mortgage interest rates in California range 7.10% for a 30-year fixed mortgage and 6.27% for a 15-year fixed mortgage
- Cost of living in Palm Springs is 22% higher than the national average
- Housing in Palm Springs is 44% higher than in the rest of the country
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If you are planning to sell properties in Palm Springs in 2023, here is what you need to know:
- Low supply will keep the market in the sellers’ favor
- High median sales price will remain
- Desirability of Palm Springs attracts buyers due to luxury properties and amenities
- Experts believe the market peaked in Q2 2022
- Buyer power may be impacted by increasing interest rates and the high cost of living
- Selling process may take longer than in the past
- Sellers should avoid overpricing their properties because of the sales decline risk.
- Sellers should work with an agent to get their homes in a favorable condition to sell
Conclusion
The Palm Springs real estate market is complex and dynamic, with trends and forecasts varying by neighborhood and property type. We hope that our aim to keep you up-to-date with the recent Palm Springs real estate market was materialized through this article.
You can make sound financial and investment decisions with a good analysis of the above data.
Sources
FAQs
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What is the richest neighborhood in palm springs?
The richest neighborhood in Palm Springs is Old Las Palmas, which is known for its large estates and affluent residents.
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What is the wealthiest part of palm springs?
Old Las Palmas is also considered the wealthiest part of Palm Springs due to its high property values and the affluent nature of its residents.
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Is the cost of living cheaper in Palm Springs than LA?
Palm Springs has a lower cost of living than Los Angeles, but the cost of housing in Palm Springs can still be relatively high compared to other areas. The cost of living in Palm Springs may also vary depending on the specific neighborhood and lifestyle factors.
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Is Palm Springs an expensive place to live?
Yes, Palm Springs is generally considered an expensive place to live. The median home price in Palm Springs is above the national average, and the cost of living is also higher than many other cities in the United States.
However, the cost of living and housing prices can vary depending on the neighborhood and type of housing, with some areas being more affordable than others.
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Is Palm Springs real estate expensive?
Yes, Palm Springs real estate is generally considered to be expensive. The median home value in Palm Springs is above the national average and higher than many other cities in California.
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What are the pros and cons of living in Palm Springs?
Some of the pros of living in Palm Springs include the warm weather, outdoor recreational activities, and thriving arts and culture scene. Cons may include the high cost of living, limited job opportunities, and occasional extreme heat.
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Is Palm Springs affordable to live in?
Palm Springs may be considered affordable to live in for some individuals, depending on their income and lifestyle. However, the cost of living in Palm Springs is generally higher than the national average and may be out of reach for some.
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What are the best areas of Palm Springs to live in?
The best areas of Palm Springs to live depend on personal preferences and priorities. Some popular neighborhoods include Downtown Palm Springs, Old Las Palmas, Indian Canyons, and The Mesa. Each neighborhood offers its own unique charm and amenities.
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Will Palm Springs real estate go down?
The future of Palm Springs real estate is difficult to predict. While the market has experienced growth in recent years, there are some indications that it may be slowing down.
However, factors such as interest rates, economic trends, and local developments can all impact the real estate market in Palm Springs.
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What is the average median home price in California?
The median home value in California is currently $569,913. This figure has been increasing steadily since 2017. The median list price per square foot in California is $339, which is higher than the national average of $203.
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What is the average median rent price in California?
The median rent price in California is currently $2,725.
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Where are the hottest real estate properties in Palm Springs?
The hottest real estate properties in Palm Springs are located in neighborhoods such as Downtown Palm Springs, Old Las Palmas, Indian Canyons, and The Mesa. These areas tend to have higher median home prices and greater demand for housing due to the various amenities available. Additionally, some of these neighborhoods are closer to the downtown area.
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