We keep seeing news articles that the prices are rising. Is this true? Well in the desert, the “rising prices” are more a reflection of the fact that we have less bank owned and short sale inventory available so the sales that are happening are with the higher priced “regular” inventory. Look below by Price Range:
In the 500,000 to 999,999 range: Sales units are way up over last year…Prices are slightly down..Inventory is only slightly down from last year.
In the 1,000,000 + Range: Inventory is up 10%, Sales are off from last year by 31%. Prices show up..What’s up?
When one looks at the prices of the 1,000,000-1,500,000, it is noted that Prices are slightly down. The prices of 1,000,000+ are skewed somewhat as there were 12 sales over 1.5M in this month of which 2 were over 5M and one was $11.1 M!
What does it all mean? Sales over $1M have been more challenging than last year. In the 500,000-999,999 sales are strong, but the prices reflect a drop of 1.2% from last year.