Closing the gap between home buyers and sellers is an art form these days.
The median household income in California is $41,901, while the average income for single families is $71,738. In Palm Springs, the median household income is $41,906, yet the average home price is approximately $695,000. Clearly, there is a significant affordability gap, which also affects the qualification process for prospective buyers.
Let’s focus on Palm Springs and explore practical ways to bridge this gap. One option is co-ownership—two individuals combining their incomes and purchasing a home together, each holding a 50% stake. This could be two friends, family members, or other trusted partners. In all cases, it’s essential to have proper legal documentation in place to protect everyone’s interests. Here are the year to date statistics for the Coachella Valley detached single family and condominiums.
Of course, a married couple could also take this approach. But more importantly, it’s worth noting that we’re currently in a buyer’s market. Nationally, there are 1.9 homes available for every 1.5 million buyers. What does this mean for you? If a home has been listed for over six weeks, you may have room to negotiate—both on price and terms—based on your qualifications. Don’t overpay.
Make sure your pre-approval documents are ready. An experienced real estate agent can guide you through that process. And remember, work with someone local. The right agent isn’t necessarily someone from a real estate TV show, but someone who has worked consistently in the market you’re targeting for at least four years.
I’m here to offer guidance, ideas, and insights to you, your friends, and your family. And if I’m not the right fit for your needs, I’ll be happy to connect you with someone who is.