Residents and home searchers alike love Palm Springs for its luxury neighborhoods and lifestyle, great location near other prominent California cities, and world-class amenities. Those buying and selling in the area can expect a slowing market going into 2023, as inventory will rise and buyers will have the opportunity to be selective with their choices. However, median selling prices will remain high, ensuring sellers receive good offers for their properties. To better understand the 2023 forecast, here’s what you need to know.
Housing market statistics
- The Palm Springs median home price was $847,000 as of October 2022
- The sales price per square foot was $454 as of October 2022, up from $361 a year prior
- The median days on market was 59 as of October 2022, down from 288 a year prior
- The number of homes listed for sale have increased by nearly triple since 2021
Palm Springs real estate market
It’s important to note that the inventory increase hasn’t created a balanced market. This partially explains the high median sales price, and the increasing sales price per square foot. Sellers who price their properties carefully should still secure good offers on their listings. Additionally, although there was concern for a Palm Springs real estate bubble popping, this likely isn’t the case with the city. Although interest rates increase, normal buyer and seller activity maintains a healthy market. With this in mind, here’s what to expect of Palm Springs next year.
Palm Springs 2023 forecast
Inventory will continue increasing as the market slows, creating more opportunities for buyers. However, it will take a while for inventory to replenish to a normal state. This, coupled with other pressures from buyers, such as increasing mortgage rates and inflation, may make it more difficult to buy in 2023. Sellers entering the new year will still likely benefit from seller’s market conditions but should be mindful of how those conditions shift further into 2023.
Buyers in 2023
However, be mindful of increasing mortgage interest rates, as they can significantly impact your buying ability. Current rates in California average 7.10% for a 30-year fixed mortgage and 6.27% for a 15-year fixed mortgage. Be sure to explore all your options before locking in a rate.
Additionally, living in Palm Springs is more costly as it’s a luxury destination. The cost of living is 22% higher than the national average, and housing is 44% higher than in the rest of the country. Keep these factors in mind when starting your search in 2023.
Sellers in 2023
There are a few things to look out for in 2023 as a seller. For one, a buyer’s power may be impacted by factors like increasing interest rates and a high cost of living. Although buyer demand will persist, the selling process will likely take longer than in the past. Given these factors, sellers should be careful about overpricing their properties in the area, as it could lead to a lingering listing or an unsuccessful sale. For the best results, sellers should work with an agent to get their homes in a favorable condition to sell.
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