Coachella Valley Housing Report – January 2023
The median price of a detached home in the Coachella Valley rose last month by $10,000 and is currently $650,000, which is up 5.7% year over year. This monthly increase is somewhat expected since prices typically begin their seasonal rise around January. The median price for attached homes was $440,000, which is unchanged from last month. Five cities continue to have double-digit price gains for their average-size detached homes with only Palm Desert having a negative year-over-year price change. Every city still has positive year-over-year price changes in their average size attached home.
Homes Sales
It is distressing that home sales continue to decline. The three-month average of sales in January was down to 413 units a month, which is 52% less than last year. Before the pandemic, January sales averaged 700 units per month, so sales are now running 41% below average. The 12-month average of sales, which takes out seasonality, shows total sales averaged 680 units a month. This is 32% below last year and the 18th consecutive month of a decline. Long-term sales are now running below pre-pandemic averages by about 15%.
Our Inventory
On February 1st, Valley inventory stood at 2,025 units, which is slightly above last month and 1,429 units more than last year. Some of the inventory gains over the last few months were seasonal but this factor was less than in previous years. The Valley’s “months of sales” ratio rose to 3.1 months, which is the highest ratio since the summer of 2020. This important and fundamental ratio, which measures supply versus demand, is below its historic average for this time of year. This means that, while sales are down, there is still a relative balance between buyers and sellers.
“Days on Market”
The average selling time in the region continues to increase. At the end of January, the median number of “days in the market” throughout the Valley was 41 days, which is now twelve days more than last year. The city of Palm Springs has the lowest median selling time for detached homes at 28 days, followed by Bermuda Dunes at 34 days.
Only 13.5% of sales occurred above the list price in January compared to 42.6% a year ago. We think the percentage is gradually returning to its historic norm of around 10%.
Every city in the region now has an average selling discount for detached homes, which ranges from -.1% for Coachella to -4.2% for Indian Wells. Attached homes range from discounts of -.2 for Bermuda Dunes to -7.7% for Indio.
If you or someone you know is looking to buy, sell or invest in real estate here in the beautiful and serene Coachella Valley, please give me a call at 323.646.8558. I will be honored to represent you and/or them at the highest level while committed to your health and safety.
FOR FREE HOME EVALUATION CLICK HERE!
Coachella Valley Housing Report – December 2022
Here the median price of a detached home in the Coachella Valley fell in December and is currently $640,000, which is up 3.7% year over year. The current price is 9.9% below the peak of $710,000 of a few months ago. Five cities still have double-digit price gains for their average-size homes but two important cities – Palm Desert and Palm Springs – have year-over-year price changes in detached homes of .5% and -4% respectively. The median price for attached homes was $440,000, which is down for the seventh month. This price is down 10.4% from its May peak but is up 3.5% year over year. This has returned the rate of growth back to its long-term average of 4.5%.
Homes Sales
It is distressing that home sales continue to decline. The three-month average of sales in December was 444 units a month, which is 49.4% less than last year. Before the pandemic, December sales averaged 717 units per month, so sales are now running 38% below average. The largest percentage declines are in the cities of La Quinta at 58%, Indio at 52%, Palm Desert at 50%, and Cathedral City at 49%. The cities of Desert Hot Springs and Indian Wells have the smallest declines.
Our Inventory
On January 1 st, Valley inventory stood at 1,911 units, which is below last month but 1,304 units more than last year. Some of the inventory gains over the last few months were seasonal. The Valley’s “months of sales” ratio was 2.7 months, which is down slightly from last month. This fundamental ratio measures supply versus demand and even though prices have been declining, a Valley ratio this low historically implies that the balance of supply and demand still favors the seller. This means that some of the price declines are due to the change from a premium to a discount market and not all from a decline in offering prices.
“Days on Market”
The median selling time in the region continues to increase. At the end of December, the median number of “days in the market” was 37 days, which is ten days more than last year. We believe it will soon be back to the region’s 50 or 60-day average relatively soon. The city of Palm Springs has the lowest median selling time for detached homes at 29 days, followed by Indian Wells and Bermuda Dunes at 34 days. In the attached market, Bermuda Dunes has the shortest median selling time at 20 days.
Only 15.2% of sales occurred above the list price compared to 43.4% a year ago. We think the percentage will soon return to the historic norm for this metric of around 10%. There has been a general transition from a premium to a discount market of about 4%. With no change in list price, this transition alone will account for some of the price declines.
If you or someone you know is looking to buy, sell or invest in real estate here in the beautiful and serene Coachella Valley, please give me a call at 323.646.8558. I will be honored to represent you and/or them at the highest level while committed to your health and safety.
FOR FREE HOME EVALUATION CLICK HERE!
Coachella Valley Housing Report – November 2022
The median price of a detached home in the Coachella Valley fell last month and is currently $649,000, which is up 5.5% year over year. This monthly decline is a little unusual since prices typically begin to rise in November. The latest price is now 8.6% below the peak of a few months ago. The median price for attached homes in November was $450,000, which is down for the sixth month. Palm Desert and Palm Springs have the smallest gain at 3%. In the attached market, gains range from 32% down to 5.1%.
Homes Sales
Home sales continue to decline. The three-month average of sales in November was 474 units a month, which is 41% less than last year. In the three years before the pandemic, November sales averaged 700 units per month, so sales are running 32% below average. Every city has lower sales now compared to a year ago. The largest percentage of sales declines are in the cities of La Quinta at 54%, then Cathedral City at 46%, Rancho Mirage at 45%, and Palm Springs and Palm Desert at 43%. Indio had the smallest sales decline at 25%.
Our Inventory
On December 1 st, Valley inventory stood at 2,048 units, which is higher than last month and 1,398 units more than last year. This monthly increase is again opposite to most other California regions, where inventory generally declined in November. The Valley’s “months of sales” ratio was 2.8 months, which is again higher than last month. The ratio continues to run below 4.0 months, which is normal for this time of year.
“Days on Market”
At the end of November, the median number of “days in the market” throughout the Valley was 35 days, which is the same as last month and nine days more than last year. As we have stated, we are pretty certain we have seen the low in this metric and believe it will be back to 50 or 60 days relatively soon. The cities of Indian Wells and Rancho Mirage have the lowest median selling time for detached homes at 30 days, followed by Palm Springs 33 days. In the attached market, Bermuda Dunes has the shortest selling time at 19 days, followed by Desert Hot Springs at 24 days.
At the end of November, 17.5% of sales occurred above the list price compared to 44.2% a year ago. We are rapidly approaching the historic norm for this metric of around 10%. Not one city is currently selling detached homes at an average selling premium and only one city now has an average selling premium for attached homes – Bermuda Dunes.
If you or someone you know is looking to buy, sell or invest in real estate here in the beautiful and serene Coachella Valley, please give me a call. I will be honored to represent you and/or them at the highest level while committed to your health and safety.
FOR FREE HOME EVALUATION CLICK HERE!
Coachella Valley Housing Report – October 2022
As you will see, the median price of a detached home in the Coachella Valley is currently $675,000, which is $5,000 higher than last month and up 12.5% year over year. The median price for attached homes was $456,250, which is down for the fifth month but still 23% higher than last year. So far, the price correction many have feared has been relatively mild. Some of it, in fact, is seasonal. Only three cities – Indian Wells, Coachella, and Desert Hot Springs – have gained over 20%. Palm Desert and Palm Springs have year-over-year gains of 8.2% and 5.6% respectively. In the attached market, gains are higher and range from 36.8% to 14.6%.
Home Sales
Home sales continue to decline. The three-month average of sales in October was 534 units a month, which is 34% below last year. Before the pandemic, October sales averaged 746 units per month, so sales are running about 28% below average. Every city except Coachella has lower sales compared to a year ago. The largest percentage declines are in the cities of Cathedral City, La Quinta, and Palm Springs, where sales are lower by 49%, 43%, and 35% respectively.
Our Inventory
On November 1st, Valley inventory stood at 2,048 units, which is 241 units higher than last month and 1,133 units more than a year ago. This monthly increase is again opposite to almost every other California region, where inventory generally declined last month. The Valley’s “months of sales” ratio was 2.6 months, which like inventory, is higher than last month. The ratio is still considerably below 4.0 months, which is normal for this time of year. Ratios have been rising in every city. Indian Wells has the lowest ratios at 2.2 months.
“Days on Market”
At the end of October, the median number of “days in the market” throughout the Valley was 35 days, which is ten days more than last year. We think we have seen the low in this metric and believe it will rapidly increase to 50 or 60 days, which is historically “normal” for the region. The city of Indian Wells has the lowest median selling time for detached homes at 25 days, followed by Rancho Mirage now at 29 days.
At the end of October, only 21.6% of sales occurred above the list price compared to 46.2% a year ago. This ratio continues to move back toward its historic norm of around 10%. Currently, only one city has an average-selling premium – Bermuda Dunes; all the others have average discounts. In most cities, these discounts are running from 1% to 2%.
If you or someone you know is looking to buy, sell or invest in real estate here in the beautiful and serene Coachella Valley, please give me a call. I will be honored to represent you and/or them at the highest level while committed to your health and safety.
FOR FREE HOME EVALUATION CLICK HERE!
Coachella Valley Housing Report – September 2022
The median price of a detached home in the Coachella Valley has declined over the last two months. It’s currently at $670,000, which is up 15% year over year. Most of this decline is seasonal but it also represents the general corrective turn that is occurring in home prices. The median price for attached homes in September was at $465,000, which is down slightly from the previous month but up 24% year over year. Gains now range from 34.1% in Indian Wells to 12.2% in the Bermuda Dunes.
Home Sales
The three-month average of sales in September was 581 units a month, which is 32% below last year. In the three years before the pandemic, September sales averaged 784 units, so current sales are objectively running about 25% below normal. Every city except Coachella had lower sales in September compared to a year ago. The largest percentage declines were in the cities of Rancho Mirage, La Quinta, and Cathedral City, where sales are lower by 43%, 42%, and 42% respectively.
Our Inventory
On October 1st, Valley inventory stood at 1,807 units, which is 214 units higher than last month and 924 more than last year. This monthly increase is opposite to almost every other California region, where inventory generally contracted last month. Some of this increase is seasonal and if the seasonal pattern continues, as we expect, inventory might possibly reach 2,500 units by February. On October 1st, the Valley’s “months of sales” ratio was 2.2 months, which like inventory is higher than last month. The ratio remains considerably below 3.0 to 3.5 months, which is normal for late summer.
“Days on Market”
At the end of September, the median number of “days in the market” throughout the Valley was 32 days, which is now eight days more than last year. As we have said, we think we have seen the lows in this metric and believe it will rapidly increase back to 50 or 60 days, which is historically “normal” for the region. The city of Indian Wells has the lowest median selling time for detached homes at 24 days, followed by Rancho Mirage at 27 days.
If you or someone you know is looking to buy, sell or invest in real estate here in the beautiful and serene Coachella Valley, please give me a call at 323.646.8558 I will be honored to represent you and/or them at the highest level while committed to your health and safety.
FOR FREE HOME EVALUATION CLICK HERE!
Coachella Valley Housing Report – August 2022
The August median price of a detached home in the Coachella Valley fell to $682,000 from $710,000 last month, but it’s still up 17.4% year over year. We have entered the seasonal period when home prices usually slow, or even decline, so some of this decline is seasonal but most we believe represents the general corrective turn that is occurring in home prices everywhere. The median price for attached homes in August was at $467,500, which is down again from the previous month but up 25.1% year over year. Year-over-year gains in detached homes are still large and range from 45.9% in Indian Wells to 15.6% in the city of Coachella. In the attached home market, two cities continue to have gains of over 40% – Desert Hot Springs and Bermuda Dunes.
Home Sales
Home sales have been falling dramatically. The three-month average of sales in August was 674 units a month, which is lower than a year ago by 31%. The largest declines were again in the cities of La Quinta and Palm Desert, where sales were down 42% and 34% respectively.
Our Inventory
On September 1st, Valley inventory was 1,593 units, which is 757 units more than last year. After surging for three months, inventory has stayed around 1,600 units for the last two months. Some of this is seasonal, and we expect it to stay at this level for another month or so. Then, if seasonal forces continue, it should start to grow again, possibly reaching 2,500 units by February.
“Days on Market”
At the end of August, the median number of “days in the market” in the Valley was 28 days, which is three days more than last year. We believe we have seen the lows in average selling times and expect this metric to rapidly increase back to 50 or 60 days, which is normal for the region. The city of Desert Hot Springs continues to have the lowest median selling time for detached homes at 19 days, followed by Rancho Mirage, Cathedral City, and Indian Wells at 23 days.
If you or someone you know is looking to buy, sell or invest in real estate here in the beautiful and serene Coachella Valley, please give me a call. I will be honored to represent you and/or them at the highest level while committed to your health and safety.
FOR FREE HOME EVALUATION CLICK HERE!
Coachella Valley Housing Report – July 2022
July’s median price of a detached home in the Coachella Valley was $710,000, up $10,000 for the month and 19.3% year over year. For the latest information contact John at 323.646.8558. We have entered the seasonal period when home prices usually slow, or even decline, but we have not seen much so far this year. The median price for attached homes in July was $479,500, up 25.1% year over year but down $10,500 from last month. Seasonal factors also point to downward price pressures on attached homes in the summer. Year-over-year gains in detached homes range from 50.9% in Indian Wells to 20.4% in the city of Coachella. In the attached home market, three cities continue to have gains of over 40% – Desert Hot Springs, Bermuda Dunes, and Indio. The forces that have been driving prices higher – high sales and low inventory – are rapidly reversing so we should begin to see some price correction soon.
Home Sale Average Price
Total sales averaged 791 units a month in July, which is 26% less than last year. The current number is 16% below the July pre-pandemic average of 948 units a month. This decline is primarily in detached sales. Every city except Coachella had lower sales in July compared to last year. The largest sales declines were in the cities of La Quinta and Palm Desert, where sales were down 43% and 32% respectively. The cities of Indian Wells, Indio, and Cathedral City experienced smaller sales declines.
Coachella Valley Housing Market Inventory for July
On August 1st, Valley inventory was 1,637 units, which is 801 units more than last year. This is a 96% increase. Inventory has finally started to grow and it’s occurring during the season when it normally contracts. The Valley’s “months of sales” ratio was 1.9 months, up 1.2 months from a year ago. Like inventory, this is the highest ratio in almost two years. The ratio remains considerably below 3 to 3.5 months, which is the norm for late summer. Even though inventories have been rising and sales falling, the changes have not been enough yet to lift the ratio back to normal levels.
Houses on Days in Market
At the end of July, the median number of “days in the market” throughout the Valley was 24 days, which is three days more than last month but one day less than last year. The city of Desert Hot Springs has the lowest median selling time for detached homes at 18 days, followed by Palm Springs with 19 days and Cathedral City at 20. We believe we’ve seen the lows in average selling times and expect this metric to rapidly rise toward more normal levels.
In the month of July, 47.9% of sales were above the list. This is the average over the preceding three months and compares to 49% a year ago. The city of Palm Springs has the highest average selling price premium for detached homes at 2.7%, followed by Desert Hot Springs at 2.2%. In the attached market, Palm Springs continues to have the highest average premium at 3.5%, but the number is rapidly declining.
If you or someone you know is looking to buy, sell or invest in real estate here in the beautiful and serene Coachella Valley, please give me a call. I will be honored to represent you and/or them at the highest level while committed to your health and safety.
FOR FREE HOME EVALUATION CLICK HERE!
Coachella Valley Housing Report – June 2022
Let’s talk home prices!
The median price of a detached home in the Coachella Valley in June was $700,000, up 16.9% from last year but the same price as last month. For the latest information contact John at 323.646.8558. The median price for attached homes was $490,000, up 34.2% year over year but slightly lower than last month. Year-over-year gains in detached homes range from \49.3% in Indian Wells to 17.8% in the city of Coachella. In the attached home market, four cities have gained over 40% – Bermuda Dunes, Desert Hot Springs, Indio, and Rancho Mirage. We have entered the seasonal period when home prices slow, or even decline somewhat, and we expect that pattern to continue this year, perhaps even more so
Average Sale Price
Total sales averaged 923 units a month in June, which is 23% less than last year. It is also about 7% less than average sales in the past June before the pandemic. The decline is about the same for detached and attached homes. The 12-month average of sales, which takes out all seasonality, shows total sales averaged 893 units a month, which is 21% below last year. The largest decline was in La Quinta where sales were down 43%. This was followed by Palm Desert with sales off 24%. The cities of Indian Wells, Indio, and Cathedral City show light to moderate declines. Lack of supply in all price ranges continues to impact the level of potential sales.
Inventory in June
On July 1st, Valley inventory was 1,531 units which are 877 units more than last year. This is a 134% increase. What’s significant about this is that it is occurring during the season when inventory normally contracts. The “months of sales” ratio for the Valley was 1.7 months, up 1.1 months from a year ago. Like inventory, this is the highest ratio in over 19 months. The ratio is still below 3 to 3.5 months, which is normal for summer. The market still seems to favor home sellers but that appears to be rapidly shifting.
Houses on days on Market in the Coachella Valley Housing Market for June
At the end of June, the median number of “days in the market” throughout the Valley was 21 days, which is one day more than last month but six days less than last year. Low inventory has kept selling times near current low numbers, but it appears that forces are in place that will cause selling times to increase. The city of Palm Springs continues to have the lowest median selling time for detached homes at 15 days. In the attached market, Palm Springs has the shortest selling time at 11 days, followed by Rancho Mirage at 16 days.
At the end of June, 54.2% of homes sold above list. This compares to 45.6% a year ago. In more normal times the number is around 10%. The city of Coachella has the highest average selling premium for detached homes at 4.5%, followed by PALM SPRINGS at 4.1%. In the attached market, Palm Springs continues to have the highest average premium at 5.2%.
Please do not hesitate to contact me if you have any questions or require any additional information about the Coachella Valley Housing Market.
If you or someone you know is looking to buy, sell or invest in real estate here in the beautiful and serene Coachella Valley, please give me a call. I will be honored to represent you and/or them at the highest level while committed to your health and safety.
FOR A FREE HOME EVALUATION CLICK HERE!
Coachella Valley Housing Report – April 2022
The Bad News!
Coachella Valley Housing Market
The main reason for this is the sharp rise in interest rates. They have hit an average of 5.35% nationally, a 2% increase from just a year ago. Interest rates may not affect you directly as a home seller, but as Lawrence Yun, chief economist at the National Association of Realtors, states, “Many buyers will be forced out of the market because of the hit to affordability from rising interest rates.”.
The Good News!
However, it’s not all doom and gloom. Locally, while increased interest rates are causing a dip in buyer demand (23% less sales then this time last year), and the number of active homes are starting to rise. Despite the recent increase in the number of active homes the total inventory is still well below pre-pandemic levels by over 2,500 active listings.
By the end of April, there were just 859 active units and now it looks like we will have over 1,100 to start June (still historically very low). This much needed inventory will allow home buyers entering the market more selection and may even curb rising prices.
As a result, median home prices in the Coachella Valley are still at an all time high ($670k). Zillow predicts that annual home price appreciation nationally will “continue to accelerate through the spring, peaking at 22% in May before gradually slowing to 17.8% by February 2023.” The increased mortgage rates will likely slow home price growth, but every major real estate firm still expects home prices to grow somewhat this year.
What do we expect?
You may be wondering how inflation and our general economic situation play into this. While inflation is hitting the average consumer hard and some worry we may see a recession in 2023, the real estate market is expected to remain strong. Interest rates are slowing down buyer activity, but it likely won’t be enough to cause a crash.
In the lead-up to the crash of 2008, the real estate market had already experienced a significant downturn. That’s something we are not seeing today. Many are actually looking to the real estate market to lessen the impact of a possible recession in 2023.
Overview
Overall, it is still a fantastic market in which to sell your home. Prices have never been better, and while higher interest rates may make it harder to buy, there are plenty of strategies that can help you find a new home and make the whole process smoother.
The market projections are positive, but the future is still uncertain. This may be your last best chance to sell your home for top dollar before rates climb even more and price more buyers out of the market.
If you’re curious about what your home could sell for in today’s market call me at 323.646.8558 for a FREE HOME EVALUATION.
I would be honored to represent YOU!
John Campbell
