Greater Palm Springs Housing Market Analysis
In June, the typical price of a Detached home in the Coachella Valley was $700,000. This was up 16.9 percent from the same time period a year ago but was flat compared to May.
Attached homes have a median price of $490,000, up 34.2% annually but down 0.2% from previous month.
Gains in the value of detached homes over the past year range from 49.3 percent in Indian Wells to 17.8 percent in Coachella proper. Attached homes in Bermuda Dunes, Indio, and Rancho Mirage have appreciated by more than 40 percent in value. It is the time of year when home values typically level off or even fall, and this trend is predicted to hold true this year, perhaps even intensify.
More than half (54.2% as of the end of June) of all home sales were above asking price. The corresponding figure from 12 months ago was 45.6%. When things are normal, that figure hovers around 10%. The average selling premium for detached homes in Coachella is 4.5 percent, while in Palm Springs it’s 4.1 percent. Palm Springs’ average premium in the attached housing market is 5.2% higher than the national average.
Real estate taxes
The Greater Palm Springs area of Riverside County levies property taxes at a rate of 1.25 percent of the assessed value of the property. The following are the estimated property taxes for a $1,000,000 home in Palm Springs:
Luxury homes Palm Springs Real Estate Taxes Per Year: $12,500 (Based on a $1,000,000 Home Price) x 1.25 Percent Tax Rate
No matter if the previous value was higher or lower than the purchase price, the new value would be established at the purchase price.
Tips on Buying a Luxury Home in Palm Springs CA
Prepare to Take Action
One of the hallmarks of a healthy real estate market is a rapid turnover of listings. There’s a chance that you won’t find them for at least a day or two. In light of this, when a home meeting your requirements finally hits the market, you should be ready to make a decision quickly and with confidence.
Straighten out your finances.
In a competitive market, the higher your offer’s financial backing, the better your chances of being accepted. Pre-approved financing, or better yet, a cash offer and proof of funds, will give you some leverage in negotiations.
Relax Your Expectations
Including fewer stipulations in your offer means you have less room to back out if negotiations break down. From the seller’s point of view, if they have faith that the purchase will go through, they will be more inclined to negotiate with you.
Employ a Real Estate Professional
Keeping track of all the moving parts in a property transaction can be a full-time job in and of itself. Professional real estate agents have the expertise to remain flexible throughout the transaction, providing their clients with the latest market data and strategies for negotiating with sellers.
Be specific and targeted.
In order to achieve this goal, it is important to be approachable, reliable, and honest.
There’s no denying that many homeowners have deep emotional ties to their homes, and for those who are selling, knowing that their property is going to someone who will treat it with the same respect and love they did may make a huge difference psychologically.
Steps on buying a Luxury Home in Palm Springs CA
Acquire Mortgage Prequalification
There are two positive outcomes as a result of this. Before the bank even tells you if you’re approved for a loan, they’ll give you a ballpark figure for how much they’re willing to give you. You’ll be able to narrow your house search to realistic possibilities after you have a good idea of what you can afford.
Locate a House for Sale in Palm Springs
Luxury homes Palm Springs has a wide variety of exciting communities, and if you know your way about, you can narrow your search by selecting one. Buyers can learn more about the local real estate market on any of our neighborhood sites.
Make a Reasonable Deal
How long a house has been on the market, its location, size, level of luxury, age, and condition are just a few of the elements that influence what is considered a reasonable offer. There could possibly be other offers to think about. A good Palm Springs real estate agent will shine during negotiations.
Arguments for and against settling in Palm Springs, California
Palm Springs is the Ultimate Relaxation Destination.
Palm Springs is a desirable place to call home thanks to its mild temperatures and lack of humidity. The laid-back atmosphere is fitting, given the high concentration of retirees. Undoubtedly, shorts, sandals, and flip-flops constitute the default uniform of daily dress. Even establishments like banks have a relaxed demeanor. If you’re easygoing and carefree, you’ll very much appreciate living here.
Con: There’s Not Much Economic Diversity
Do you work in the hospitality industry? If yes, Palm Springs is fantastic! That’s because tourism is the key economic driver around here. Unfortunately, it’s also one of the only economic generators in Palm Springs. There are very few IT and manufacturing employment available, while there is a demand for healthcare employees. (That’s probably because there are so many retirees residing here.)
Housing is quite inexpensive, which is an advantage.
One of our favorite positives on this list of the Pros and Cons of Palm Springs, CA, is the cost of purchasing a home! However, unlike in many resort towns, housing in Palm Springs is very affordable. More than a few affordable housing options are available, and residences start around the low $200s. That’s down in the valley, where several areas have expressly for seniors 55 and older. (Prices go up as you approach closer to the core of the city.) With housing costs, this economical living in Palm Springs, CA, is much less demanding on your budget.
Negative: Palm Springs’ Expensive Lifestyle
Although Palm Springs has cheaper housing, the cost of living is much higher. The expense of leasing a house or a condo has increased as well. On a scale of 100, Palm Springs rates at just over 131. To put it another way, that’s considerably greater than the U.S. average. Additionally, apartment rental rates are more expensive than normal. (Despite the unexpected drop below the state average,)
Complete the Home Purchase Transaction
All of the specifics of the transfer of ownership of a property are laid out in a closing contract. Escrow agents are frequently involved in the contracting process because of the potential for complexity. Additional expenses include closing charges, which are typically split 50/50 between the buyer and seller.