The Palm Springs real estate market managed to weather the deluge brought about by COVID-19 in 2020. Real estate experts noted that Palm Springs and much of Coachella Valley defied dire pandemic forecasts and saw a seller’s market as hot as the sunshine that blesses these areas almost all year round.
The question now is this: in 2021, will the Palm Springs property market maintain this momentum or not?
Several experts observing movements in the local real estate market of the Greater Palm Springs area weigh in on what to expect in this new year.
Feverish Market Activity to Slow Down
Most of these observers and real estate pundits forecast that sellers will still dominate the Greater Palm Springs market up to this year. However, with COVID-19 still very much a threat to this day, its extended havoc-wreaking could temper last year’s feverish rise in market activity. The redemption here takes the form of interest rates that will continue to register rock-bottom stats.
Here are specific points to consider:
- The local real estate market will manifest a more “modest” rise in the sale of single-family homes, based on the 2021 forecast of the California housing market by the California Association of Realtors. From a whopping 8.1% jump in median home prices from approximately $592 thousand in 2019 to more than $640 thousand in 2020, a year-to-year increase of 1.3% to almost $649 thousand is expected in 2021.
- Freddie Mac, meanwhile notes a 2.6% forecasted growth in sale prices of homes from last year’s spectacular 5.5% rise.
- Zillow, for its part, still sees median home prices in the Greater Palm Springs area growing by leaps and bounds this year with a range from 6.9% (for Indian Wells) to 7.5% (for Thousand Palms).
Apart from the continuing health threat from COVID-19, California real estate publication first tuesday Journal reveals other potential dampeners to the stellar rise in sale prices of homes. These include:
- The low inventory of available homes in the market;
- Property buyers and sellers getting used to the low mortgage rates and adjusting home prices to more reasonable levels;
- The country beginning to feel the full brunt of the economic recession; and
- Employment strains and end of the foreclosure moratorium resulting in distressed sales.
All things considered, home sales volume is seen to recover by 2023 when speculators, as well as millennial and baby boomer homebuyers, return to the market to hunt for bargains.
Remote Work Driving Buyer Interest
The work-from-home setup has become institutionalized due to necessity, especially in these times. It is the most viable option for business continuity as it allows people to get work done from the comfort and safety of their respective homes.
Since employees are no longer tethered to their respective places of work, they can be productive from virtually anywhere. This is where the attraction of Palm Springs homes for sale comes into play. People from big cities like Los Angeles and New York are choosing to move to more laid-back locales like Palm Springs. House prices here may still be high but they can enjoy a less harried lifestyle and wider spaces for their families to grow.
The Palm Springs real estate market will continue to thrive this 2021, and you shouldn’t miss this opportunity. To ensure you get the best advice on navigating in this new normal, work with local top-notch Realtor John Butler. Call him at 760.989.2030 or send an email to AmazingDesertHomes(at)gmail(dotted)com.