Real Estate Tips & Trends
Investor Alert: Palm Springs is the Place to Buy in 2020
Brad Schmett|January 17, 2020
Real Estate Tips & Trends
Part of operating as one of the most trusted real estate groups in the Palm Springs area is the wisdom and experience we bring to the table.
One thing experience has taught our team is that it’s important to rely on what you’ve learned in the past, while also staying aware of the new trends that are always reshaping the real estate market in California.
Our team has had a close eye on this year’s market trends so we can help people find their next dream home. Of course, California is a big state, and value and rate trends can vary from area to area, but one trend that’s not going away anytime soon is that Palm Springs is a buyer’s market!
With prices and mortgage rates down and listings up, there are a lot of reasons to buy now, especially in the luxury home market.
Read on to learn about the 2019 California real estate trends we’re keeping our eyes on.
Across California, inventory is up. That’s good news for buyers, as it means there are more home options out there to choose from.
This spike is mostly due to an increase in active listings of higher-end homes, meaning entry-level properties may be a bit harder to find.
But if you’re in the market for a more luxury property, now’s a good time to go house shopping, especially in southern California. From LA and Orange County to San Diego and out to Palm Springs and the Coachella Valley, the options and prices are on the buyer’s side.
There’s more good news for buyers this year — mortgage rates continue to float around at historical lows, so payments are affordable and financing is relatively accessible.
When you look at a change in mortgage rates, it may not seem too consequential. But small changes can make a big difference when you’re talking about a higher value luxury home like the ones in the Palm Springs area. A 30-year mortgage rate change from, say, 4.9% to 4.15% would save a buyer hundreds of dollars every month.
A word of warning: trends show that rates could start to tick up soon, so now’s a good time to lock in a mortgage at an excellent rate.
Not only are mortgage rates low right now in California, but average home prices in the state are down, too!
For the first time in seven years, prices on homes in the state are falling, around 0.1% overall. Even though the price drop may seem small, it means that buyers save a little when buying (especially on higher-end homes) and can rest assured they’re not shopping in an overpriced market — a nice thing to know if you ever plan to sell in the future.
New forecasts predict that California home values will rise more this year than they did in 2018. And on top of that, they’ll perform better than the nation’s overall housing market.
This means 3 things for buyers:
2019 Palm Springs real estate trends could be summed in one word: Popular.
One of the most popular places to buy right now in California is Palm Springs and the surrounding areas, meaning real estate in all the cities in the Coachella Valley is flourishing.
Why is this? Beyond the fact that Palm Springs is simply one of the most beautiful places in the state year-round, there are other commercial factors playing a role in popularity.
For starters, business is good — literally. There are a lot of new businesses doing well in Palm Springs’ downtown area, driving up opportunities for work and bringing more investment to the city.
Some local experts also believe that the cannabis-growing industry may be aiding in the booming housing markets in Desert Hot Springs, Indio, and Coachella because it brings more investment and employment opportunities, which draws homebuyers.
The city has also continued to offer more and more amenities such as hotels and restaurants, which help attract both tourists and home buyers. All that means more money injected into the local economy.
Successful business and a strong economy has helped boost real estate in surrounding areas like La Quinta, Rancho Mirage, and Palm Desert, too. And Californians from across the state are clued into this development — almost 68% of remote owners in the greater Palm Springs Area come from other California cities.
Brad Schmett Real Estate Group is the number one real estate team in the Palm Springs area. We have experience helping buyers and sellers in Palm Springs and other areas throughout Coachella Valley.