Rancho Mirage, CA Real Estate Market Outlook in 2023

Rancho Mirage, CA Real Estate Market Outlook in 2023

Those interested in searching for or listing their Rancho Mirage, California real estate can expect cooling trends to continue entering the new year. Although buyers will still be attracted to the luxury amenities this leisure resort city boasts, increasing mortgage rates will affect buyer demand and sales prices. Cooling trends generally reflect the state’s market, as home sales are expected to decrease next year. To contextualize the predictions for Rancho Mirage in 2023, here’s what you need to know about current market trends.

Housing market statistics

For a quick view of current trends in the city today, review the statistics below. Then, read on for a thorough explanation of what these figures mean for you as a buyer or seller.

  • The median price for single-family homes is $1.09 million
  • The median price has increased by 3.7% compared to last year
  • Home sales in the city have decreased by 43.4%
  • Active listings have increased by 140.4%
  • Homes spend a median of 35 days on the market
  • There are 3.9 months of inventory in Riverside County, a 95% increase compared to last year

Rancho Mirage real estate market

Rancho Mirage is experiencing cooling trends, evident in decreasing closed sales and increasing inventory. Buyers looking for homes today benefit from more options on the market, as inventory has increased 95% compared to last year. Fewer home sales mean there’s less buyer competition on the market, creating space for buyers to negotiate with sellers without worrying about a looming bidding war.

Local sellers likely feel the effects of longer listing times, which have more than doubled nationwide. Longer listing times are an effect of more inventory and less buyer demand, creating higher levels of competition between sellers. However, sellers today still benefit from increasing median sales and higher median prices. Although inventory is higher, current supply levels keep the market in the sellers’ favor.

2023 forecast

Although Rancho Mirage favors sellers today, continuing cooling trends into 2023 will create more balanced market conditions. Price increases in the area are slowing and will continue to slow entering the new year. Although the decreasing home sales today are partly impacted by regular seasonal trends, a decline will continue throughout 2023. As inventory increases, the number of homes sold above asking will keep declining.

Those searching for or listing Rancho Mirage homes for sale can expect cooling trends to impact them positively and negatively. As the state enters a modest slowdown, market trends caused by inflation and rising interest rates will make housing affordability drop. The stagnation is only expected to impact the first half of 2023 but will have the desired effect of balancing the market.

With a market recovery not expected until 2024, buyers facing decreased housing affordability will turn to rental alternatives across the state. Although renters contribute to decreasing home prices, the low inventory keeps costs from plummeting. Low inventory also keeps Rancho Mirage and California safe from a housing crash. Even so, market conditions today may make sellers hesitant entering 2023, which will also impact the number of home sales in the new year.

Buyers in 2023

Buyers interested in Rancho Mirage can expect mixed conditions entering the new year. Starting with the positives, home sales are expected to decrease, meaning buyers won’t face stiff competition like in years past. This, coupled with more inventory in 2023, means that buyers have more time to search for properties that meet their needs, then negotiate with sellers on offer conditions. Although the city remains popular for its luxury amenities, the impacts of mortgage rates will curb demand.

There are a few factors to keep in mind when searching for homes in the area. Interest rates are expected to remain high going into 2023, so buyers financing a house with a mortgage should factor in rates before making a home search. As of this writing, California rates are 6.85% for a 30-year fixed loan and 6.20% for a 15-year fixed loan. Buyers should also factor in the cost of living, as Rancho Mirage is significantly more expensive than the national average. Working with local experts like those at Canavan Coit & Associates will be particularly helpful for buyers starting their home search in 2023.

Sellers in 2023

Sellers looking to list their properties next year should partner with real estate agents in Rancho Mirage to best navigate changing market conditions. As the area begins to balance out, sellers should expect longer listing time as buyer demand decreases and inventory increases. Sellers should avoid overpricing their homes and work with an agent to determine a price that remains competitive on the market. Patience is also key in a successful home sale, as the balanced market will starkly contrast to hot sellers’ conditions in past years.

However, sellers will still benefit from the city’s high appreciation rates, which rank in the top quintile across the United States. Rancho Mirage real estate has more than doubled in the past decade. Sellers also benefit from the city’s amenities, like its 17 golf courses, great weather, and popular events like Coachella and Stagecoach Music Festival. This keeps the area attractive to buyers, even with challenging market conditions.

Ready to search in Rancho Mirage?

Buyers and sellers planning a home transaction next year in Rancho Mirage can expect a mix of advantages and disadvantages entering the real estate market. Although the city’s amenities and appreciation rates will keep properties valuable, buying power impacted by inflation and interest rates presents challenges in a home purchase and sale. 

Work with an experienced real estate agent familiar with the area to navigate cooling market conditions impacting all of California. When you’re ready to start planning your 2023 home transaction, contact Canavan Coit & Associates to guide you through the process.

*Header photo courtesy of Shutterstock

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