The pandemic has taken a toll on the local economy, but real estate agents say the housing market is on solid ground.
“From my perspective, we’re doing phenomenal out here. We’re seeing, you know, we’ll call it a flight out of high density urban areas,” said Darren Shay, a realtor in Palm Springs and Palm Desert.
A recent study by Zillow finds Riverside County’s average sale price in May was 3.8 percent higher than this time last year, and they expect those numbers to increase over the coming months.
“It’s still not what I would term a seller’s market, but it’s a much more level playing field. Buyers can still have some pull but we are seeing on the market for much less time than ever before,” said Shay.
One reason behind the trend is the limited amount of homes available in the Coachella Valley.
Real estate agents also point to low interest rates, with the current rate on a 30-year fixed mortgage dropping below 3 percent for the first time in history.
Another explanation, first time buyers, as the average home price ranges between $250k and $500k.
And while the residential market is on the rise, commercial real estate faces it’s own challenges.
“A lot of deals that were in escrow canceled. People were just really unsure of what was going to happen in the market and you know there’s still a little bit of trepidation there because you know restaurants are opening, retail stores are opening and closing left and right, so there’s really not as much activity,” said Adam Gilbert, president of The Firm Commercial.
But Gilbert says a healthy housing market could bring other opportunities for commercial sales.
“With the boom in the residential and more people coming to Palm Springs, maybe we’ll see some excitement about that. But there’s still that question of what’s going to happen to tourism and whether or not these businesses are going to be able to sustain in the future”