Real Estate Breakdown

The Palm Springs real estate market continues to face mixed signals, although it seems that governmental intervention has nudged home sales in the right direction. According to a November 5, 2009 article in the Desert Sun, “The inventory of existing homes for sale in the Coachella Valley is the lowest since December 2005 as home sales rose 1.2 percent in September over September 2008, the California Desert Association of Realtors reported today. The median price was $159,810 in September, down from $199,810 in September 2008. Prices dropped 20 percent in September over the same period a year ago. ‘The desert median price for a single family home is now below the national median for the first time in several years when including sales in the high desert areas,’ said Greg Berkemer, executive director of the California Association of Realtors. ‘Median sale prices on the valley floor itself rank among California’s most affordable homes.’”

Palm Springs homes for sale have been faring better than the rest of the Coachella Valley, which has been declining recently. According to a more recent article in the Palm Springs Desert Sun, published on November 26, 2009, “Coachella Valley home sales fell 3 percent in September, a new report from San Diego-based MDA DataQuick shows. Sales had been rising steadily since June 2008 – after sales fell 12 percent and the median sales price stood at $300,000 – mostly because of dropping prices. September ended that sales streak. The median price rose 2 percent in October throughout the six-county Southern California region. October data are not yet available for the valley.”

Government action seems to have improved the lot for real estate in Palm Springs, according to a third article in the Desert Sun, this one by Debra Gruszecki. The piece, released on November 6, 2009, noted that “Congress sweetened the deal for house-hunters on Thursday, extending the deadline beyone Nov. 30 for first-time homebuyers to  collect up to $8,000 and beefing up the tax credit pool to include a $6,500 credit for owners of existing homes who are buying a new home. That incentive is kicking in at an opportune time in the Coachella Valley, real estate professionals said Thursday.”