Posted on 20 Oct
The Palm Springs market doesn’t show any signs of cooling as buyers flock to the Coachella Valley for its mesmerizing beauty, thriving arts scene, eclectic dining and incredible outdoor recreation. The Agency’s data shows that the desert destination is in high demand, as Q3 2020 shows a dramatic 70% increase in sales compared to the same quarter of 2019.
The Q3 increase came on the heels of a nearly one-third drop in Q2 over the year before, as the pandemic’s effects were felt throughout the Coachella Valley. But pent-up demand from the Spring, which is typically the strongest selling season, began to fuel increased sales. As The Agency’s Director of Architectural Estates, Desert Communities Jeff Kohl recently told The Wall Street Journal, “The market has exploded.” While the summer months are usually quiet, Jeff tells WSJ, “We’ve seen more deals in the last three months than in the last two years combined. Everything has sold—unless it’s significantly overpriced or needs a lot of work.”
Jeff also noted that buyers from Los Angeles, San Francisco and San Diego are fueling much of the demand as they seek “drive-to” destinations to escape the city to play golf and tennis. Palm Springs is a perfect example of a vacation home destination that can be accessed by major population centers without the use of commercial air travel.
Jeff weighed in on the state of the market in the WSJ’s article about the Kaufmann Desert House, one of Richard Neutra’s most recognizable projects, hitting the market for $25 million. Sales over $10 million in Palm Springs, North Palm Springs and Rancho Mirage are very rare, with only one transaction in that category over the past five years.
In the third quarter of 2020, not only were sales up 70% over the year prior, but the combined median home price increased 14% over the same period in 2019. The rapid pace of sales has reduced the number of active units by 39%, an extremely thin 1.5 months of inventory at the current pace of sales.
If you’re interested in selling or buying in the Palm Springs/Palm Desert region, contact a member of The Agency team on the ground here at TheAgencyRE.com/Palm-Springs.