A key, national index of home prices saw significant gains this January, with California cities showing price increases from San Francisco to Palm Springs.
According to the Standard & Poor’s/Case-Shiller index of 20 metropolitan areas, home prices nationwide rose 0.3 percent from December 2009 to January 2010 on a seasonally adjusted basis, marking the eighth consecutive month of home values improving or at least holding steady.
Prices across California are up almost 4 percent from the bottom in May 2009, but still almost 30 percent below the May 2006 peak, according to the report. The Coachella Valley, including Palm Springs and surrounding communities, saw some of the largest gains in the state.
According to the local California Desert Association of Realtors, the Coachella Valley’s real estate market reported a 14.8 percent jump in median home price in February compared to January. In the same period, the valley posted a monthly sales gain of 5.6 percent.
The valley’s median home price in February also rose to $179,090 — up from $156,000 in February 2009, according to the California Desert Association of Realtors.
“It’s good news,” said Scott Newton, a real estate broker and president of Palm Springs Regional Association of Realtors, who was quoted in an article that appeared in The Desert Sun on March 31. “The market is starting to balance out.”
California home sales will likely get an additional boost in coming months when a new government stimulus package is enacted.
State lawmakers recently passed a tax credit of up to $10,000 for homebuyers beginning May 1. The state allotted $100 million for first-time buyers and another $100 million to help those who purchase newly built homes.
The state-wide tax incentive take over just in time as the federal first-time homebuyer tax credit of up to $8,000 is scheduled to expire at the end of April.
Interested or buying or selling property in Palm Springs or the Coachella Valley area? Contact Patrick-Stewart Properties today.
