If you could look at the real estate market across California and nothing else, you might call it a banner year. Of course, nothing in real estate is that simple.

2020 was one for the record books across the Palm Springs real estate market, the Coachella Valley, California, and the world.

The pandemic profoundly affected how the vast majority of us lived our lives this year, but somehow, the real estate market not only persevered - it thrived.

Predictions at the pandemic's beginning weren't so rosy - there were a lot of unknowns. There was even a bit of a slowdown in the marketplace amid this uncertainty in late Spring as Summer approached. These fears turned out to be misplaced, as median sales prices registered growth of 10% compared to the previous July.

This growth was likely spurred on by an especially low inventory of properties, creating a lot of competition for available properties.

But now, 2020 is past, and we're looking forward to 2021, which begs the question: What's next for the Palm Springs and Coachella Valley real estate market?

More Palm Springs Real Estate Market Growth Into 2021

If the current trend of low inventory and mortgage rates continues, you can expect home values to continue upward.

And that's exactly what many experts are predicting.

Mortgage rates aren't showing any signs of going up anytime soon; we may see them dip even lower.

New construction has been slow to recover. After coming to a virtual standstill when many lockdown procedures went into full effect in the spring, the market has a lot of ground to make up to keep up with rampant demand.

A Strong Seller's Market

Market conditions currently favor the seller, likely continuing into the next year.

Low inventory and high demand for properties create ideal market conditions for the seller. Transactions are normally completed quickly, and it's much more likely that available properties will attract multiple offer situations, further driving up the final sales price.

Low mortgage rates will likely keep buyers in the game in early 2021, but this could change. If property values continue to rise, more and more buyers, especially first-time buyers, could be pushed out of the market completely. Any increase in mortgage rates would only exacerbate the issue.

Migration Away From The Cities

Various factors brought on by the pandemic have only fueled a trend that has grown steadily for decades - a movement away from America's big cities.

Our very own Palm Springs is a prime example of this.

In the past year, we've seen plenty of relocations from many of the more populated areas on the coast, including Los Angeles, San Diego and even the San Francisco Bay Area.

Reasons for making the move can vary, but less population density is a huge benefit of living in many areas of the Coachella Valley.

A renewed acceptance and support for remote work is also making it much easier to move to the Valley. Modern technology has made it easy for high-tech Los Angeles and Silicon Valley workers to keep their jobs and choose where they want to live.

The Greater Palm Springs & Coachella Valley's affordability is also a huge plus, especially compared to the over-the-top property values in some of those big coastal cities.

A Renewed Interest In Investment Properties

Palm Springs and the Coachella Valley has always been a prime location for those looking to invest in a second home or an investment property. Real estate is a pretty dependable investment, and that's exactly what investors look for in uncertain times.

Plus, rock-bottom mortgage rates have made borrowing money very affordable.

The summer months saw a pretty sizeable increase in the volume of investment property sales compared to what we'd normally see.

The comparably low property prices of Palm Springs and the Coachella Valley make it especially appealing. Its stunning year-round climate, vibrant culture and amazing amenities have all contributed to its position as a top vacation destination in the United States.

Just outside Palm Springs, Cathedral City has been singled out as a top place to invest for 2021.

Are you interested in learning more about the Palm Springs real estate market? Contact Geoffrey Moore online or by phone at (760) 641-5689 for more expert local information!

Posted by Geoffrey Moore on


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