Palm Springs Area - (Palm Springs, Cathedral City, Rancho Mirage, Desert Hot Springs, Palm Desert, La Quinta, Indio, Bermuda Dunes)
| Type | Total Inventory | Pendings | New Listings | New Listings/Sales Ratio | Sales As Percent Of Inventory |
|---|---|---|---|---|---|
| Single Family Homes | 5612 | 290 | 1387 | 4.8 to 1 | 5.2% |
| Condos | 1868 | 81 | 430 | 5.3 to 1 | 4.3% |
| Multi-Family | 201 | 9 | 42 | 4.7 to 1 | 4.5% |
Unfortunately, the statistics for January are not good. Inventory increased in all categories. New Listings of Single Family Homes increased by 77% over December 2007. Probably a bit overstated because some sellers held off until after the holidays. This most likely will level off during February.
The number of properties going into escrow (pendings) increased in all categories, however inventory is still coming on around five properties for every one that goes into escrow. Prices will continue to fall until the market returns to a more equal number of sales to new inventory.
The recent interest rate cut by the Federal Reserve Board has not had an impact either way on the real estate market. Mortgage rates are set by the 10 year treasury auction, therefore any increase/reduction was already factored into the market at an earlier date. The only upside to the interest rate cut is a psychological one, i.e., positive news for a change rather than more statistics on sub prime foreclosures.
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