As reported in The Desert Sun today (Dec. 23, 2009) home prices are rising in the Palm Springs area. Prices rose a bit in the Palm Springs area in November compared to the previous month, the California Association of Realtors (CAR) reported.

In the Palm Springs/Lower Desert area, the median home price was $172,070, up 4.7 percent from the October median price of $164,390. Home sales in the area rose by 26.5 percent in November, compared to November 2008.

The median price of an existing single-family home in the Riverside-San Bernardino counties area last month was $177,840, up 3.6 percent from $171,600 in October.

Statewide, home sales increased 26.3 percent in November, compared to the same month a year ago, but were down 14.8 percent from the previous month, according to CAR.

“First-time buyers continued to drive the market in November, as many opened escrow to take advantage of the federal tax credit prior to its original Nov. 30 expiration,” CAR President Steve Goddard said. “The extension and expansion of the tax credit until April 30, 2010, along with low interest rates, should continue to positively impact the market in coming months.”

The median price of an existing, single-family detached home in California in November was $304,520, a 5.8 percent increase from the $287,880 during the same month last year, and up 2.4 percent from October’s $297,500.

“With sales bottoming out more than two years ago and the median home price reaching its trough in February 2009, California remains ahead of the nation in market recovery,” CAR Vice President and Chief Economist Leslie Appleton-Young said.

“The median price for most regions hit bottom during the first half of the year, and the statewide median home price now is nearly $60,000 higher than its lowest point in the current cycle.”