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Located in Southern California, Palm Springs has suffered from a struggling real estate market over the past several years as a result of the economic recession that began in the fall of 2008, as well as real estate problems that began in 2007, prior to the recession.  Real estate experts have optimistic views of the future of the real estate in Palm Springs, as Southern California has maintained year-over-year gains in both the number of home sales and median sales price.  Experts also believe that the federal tax credit for first-time homebuyers, as well as greater affordability of housing and an easier ability to get credit will play major roles in the recovery of the Palm Springs real estate market throughout the coming months.

According to DQNews.com, Southern California has maintained its year-over-year gains in home sales  for the 18^th consecutive month, and has posted its first year-over-year gains in median sales prices since the summer of 2007.  In December of 2009, Southern California posted a total of 22,238 new and resale houses and condos, which was a 16.4 percent increase from that of the previous month, and a 12.1 percent increase from that of December of 2008.  However, real estate experts weren’t too surprised by the increase in sales prices since the region tends to post an average increase of 13 percent in home sales as shown by historical data trends.  Experts are confident in the market, though, since even the luxury real estate markets of high-end communities such as Beverly Hills, Santa Monica, and Newport Beach are showing major improvements in their real estate markets.  The median sales price for Southern California was about $289,000, a 1.4 percent increase from that of the previous month and a 4 percent increase from that of the previous year.  Experts believe that the median sales price will continue to rise as the inventory of distressed and previously foreclosed properties declines.

The Desert Sun has also reported that the market for apartments in Palm Springs has also shown major improvements during the recent months.  Shortly after the recession, many apartments fell into foreclosure, but as the apartments moved back onto the market at much more affordable prices, the market improved.  Realtors have noted that primarily only the lower-end affordable apartments have accounted for the majority of the apartment sales over the past few months.