Palm Springs Area – A Good Time To Buy or Sell

We’ve seen higher- end home prices drop here at a rate of 1.5 to 2% per month, since January 2008.   A 35% or more price reduction from the highs in 2006-2007 is not uncommon.  In the last few months though, prices seem more stable and we may get a modest annual boost from the increased numbers of buyers here for our winter season. 

For individual sales exact trend prices may not matter too much as buyers are willing to pay more for a property they love and less for one they want to upgrade.  Two buyers may easily differ on the value of a home by 10%, which can mask any short-term trend value change.   The amount of inventory can also affect price if the lower priced homes in the same class are bought first – leaving later buyers with fewer choices and higher prices.

So, in a stable or further declining market, there is no reason for Sellers to wait as prices are not expected to rapidly rise if history repeats itself.  It took LA 10 years to recover the high they experienced in 1999 from the housing downturn then

It’s also a good time for Buyers, as we may be seeing the bottom.  Those buyers who believe we can go down another 20% might wait, but that’s a gamble.

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