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Impact of COVID-19 on the Palm Desert Housing Market

 

Impact of COVID-19 on the Palm Desert Housing Market
 Impact of COVID-19 on the Palm Desert Housing Market

The coronavirus pandemic has disrupted the housing market. The demand and supply of homes in Palm Desert, a city in California, have been affected by various factors. In this article, we will explore how covid-19 impacted the Palm Desert housing market.

 Demand for Homes in Palm Desert

The demand for homes in Palm Desert has been fluctuating since the pandemic. According to Redfin, the median sale price of a home in Palm Desert was $585,000 in September 2023, down 3.1% year-over-year. The number of homes sold in September 2023 was 69, down from 96 in September 2022.

One of the reasons for the decline in demand may be the reduced tourism and travel activity due to covid-19. Palm Desert relies heavily on tourism as a major source of income and employment, and the pandemic has affected the hospitality and entertainment industries in the area. The tourism revenue in the Coachella Valley, which includes Palm Desert, dropped by 50% in 2020 compared to 2019.

On the other hand, some factors may have increased the demand for homes in Palm Desert during the pandemic. One of them is the low interest rates and mortgage rates that have made home buying more affordable and attractive for many buyers. The average 30-year fixed-rate mortgage rate was 2.88% in September 2023, down from 3.64% in September 2019.

Another factor that may have increased the demand for homes in Palm Desert is the preference for more spacious and comfortable living environments amid the pandemic. Many people who have spent more time at home may have realized the need for more space, privacy, and amenities, such as a home office, a backyard, or a pool. Palm Desert offers many homes that can meet these needs, as well as a warm and sunny climate that can enhance the quality of life.

Supply of Homes in Palm Desert

The supply of homes in Palm Desert has also been affected by the pandemic. According to Redfin, there were 621 homes for sale in Palm Desert in September 2023, ranging from $67,000 to $12.9 million. The median listing home price in Palm Desert was $622,400 in September 2023, up 3.8% year-over-year.

One of the reasons for the increase in supply may be the financial hardship and distress caused by the pandemic. Some homeowners who have lost their jobs, income, or savings due to covid-19 may have decided to sell their homes to avoid foreclosure, pay off debts, or relocate to cheaper areas. The unemployment rate in Riverside County, which includes Palm Desert, was 7.7% in August 2023, up from 4.6% in August 2019.

On the other hand, some factors may have decreased the supply of homes in Palm Desert during the pandemic. One of them is the limited inventory and construction of new homes due to covid-19 disruptions and delays. The pandemic has affected the availability and cost of labor, materials, and land, which have hampered the production and delivery of new homes. The number of building permits and housing starts for single-family homes in Riverside County was lower in August 2023 than in August 2019.

 Inconclusion the covid-19 pandemic has affected the demand and supply of homes in Palm Desert in different ways. The housing market in Palm Desert has been influenced by various factors, such as tourism, interest rates, space needs, financial hardship, inventory. The Palm Desert housing market may continue to change as the pandemic situation evolves and new trends emerge.

Homes in PALM DESERT area

Palm Desert offers homes in various architectural styles, custom builds, and even raw land to build your one-of-a-kind dream home. If you want to know more about what’s available to buy in Palm Desert, check out these luxury listings currently on the market with virtual showings.

Homes for sale around the Palm Desert Area

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