As we dive into the real estate data for Palms, 90034, for July 2024, the market presents some intriguing trends and opportunities for both buyers and sellers. With an absorption rate of 22%, the market in Palms is showing signs of moderate activity. Out of the 40 active listings, 9 properties sold, with an average sales price of $1,380,000, and an impressively low average of just 11 days on the market (DOM). These statistics suggest a competitive market where homes are moving relatively quickly, despite a somewhat modest absorption rate.

What Does a 22% Absorption Rate Mean?

For those unfamiliar, the absorption rate is a key indicator used in real estate to determine how long it would take to sell the current inventory of homes on the market. In Palms, the absorption rate of 22% suggests a balanced market, leaning slightly toward a buyer's market. This percentage indicates that while there is steady demand, there's also sufficient inventory available, giving buyers a decent amount of choice without overwhelming competition.

Impact of Statewide Actions on the Local Real Estate Market

One of the most significant developments affecting California's real estate landscape is Governor Gavin Newsom's recent directive to dismantle thousands of homeless encampments across the state. This action, spurred by a recent Supreme Court ruling that grants governments more authority to remove homeless individuals from public spaces, has broad implications for neighborhoods like Palms.

Potential Impacts on Palms and Surrounding Areas:

1. Increased Public Safety and Cleanliness:

   • With the removal of encampments, residents may notice an improvement in the overall cleanliness and safety of public areas, which could positively impact property values in the long term.

2. Shifts in Community Dynamics:

   • The dismantling of encampments may lead to changes in the local community dynamic. Some residents may welcome the changes, while others might express concern about where the displaced individuals will go and how that might affect surrounding areas.

3. Pressure on Affordable Housing:

   • As homeless encampments are dismantled, the demand for affordable housing is likely to increase. This could lead to new developments in areas like Palms, potentially increasing inventory but also driving up competition for lower-priced homes.

4. Impact on Market Demand:

   • The government's actions could influence the demand for housing in areas close to where encampments were previously located. Buyers might be more attracted to these areas, anticipating improvements in public spaces and infrastructure.

The Palms real estate market in July 2024 presents a unique snapshot of a neighborhood in flux. With a balanced absorption rate and a quick turnaround on home sales, it's clear that Palms remains a desirable area for many buyers. However, the broader implications of state actions on homelessness could reshape the community in unexpected ways.

For anyone considering buying or selling in Palms, now is the time to stay informed and make strategic decisions based on the evolving landscape. As your trusted Realtor, I’m here to guide you through these changes and help you navigate the market with confidence.

All the best,

Nathan Derry

📍JohnHart Real Estate

📞(424) 303-0440

📧 nathan@jhagents.com

👨🏽‍💻 itsnathanderry.com

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