Palm Springs Market Update

We started this season with the wind in our back, still in the wave of prices increasing, inventory low and the outstanding sales of 2013!
A quarter into 2014 , it is a totally different picture and we certainly do have to revise our goals for the 2014 business year.
Talking with other Realtors we are hearing the same story.

How do I explain that? Looking at the sellers’ side and as well the Buyers’ side:On the Sellers’ side : the Media, the Realtors themselves were giving us all the indications that we were to expect the same interest, number of sales as the previous year. But this confidence was transmitted to the sellers and the properties listed at prices based on price increase that took place in the previous 6 months. So homes priced high and sellers confident they should be able to sell FAST and at LISTED PRICE.
On the Buyers’ side: our market was for the last 4 years, was based on Canadian Buyers: 80% of our market. In 2014, the Canadian currency lost 10% or more of its value at the very beginning of the year and our new listings were “overpriced”. (By end of our season, we are seeing a great number of price reductions). We lost the pool of buyers we were counting on.

I guess that we have to look at reality and understand that once again the market has changed. As Realtors we have to be on top of that game and just follow the “CHEESE”

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