“YOUR LOCAL MARKET UPDATE”
 
 

MARKET REPORT 2023, July 1st-31st

  • Prices:

    • Median price of a detached home fell to $665,500, down 6.3% year over year.

    • Median attached price declined $25,000 in July to $450,000 and is now down 6% year over year.

    • Every city but Desert Hot Springs has a year over year price decline in its average size detached home.

    • Three cities have positive year over year changes for their attached homes - Indian Wells, Desert Hot Springs and Rancho Mirage.

  • Sales:

    • The three-month average of sales rose three units this month to 717 units a month.

    • Some of this decrease is seasonal and it’s occurring equally in both the detached and attached market.

    • The largest percentage declines were in Bermuda Dunes, down 40%, and Palm Springs, lower by 18%.

    • Sales numbers in every city continue to improve against last year.

  • Inventory & “Months of Sales” Ratios:

    • Valley inventory was 1,629 units, which is again down a little more than one hundred units from last month.

    • The Valley’s “months of sales” ratio was 2.8 months, which is .2 month less than last month but .9 months more than last year.

    • At 2.8 months, this fundamental ratio, which measures supply versus demand, is at a level that represents a balanced housing market.

    • Seven cities now have ratios under three months, which is in the middle of the range of ratios that indicate a balanced market.

  • DIM:

    • At the end of July, the median number of “days in the market” in the Coachella Valley was 39 days, compared to 24 days last year.

    • Because of dwindling inventory, we continue to expect this number to gradually move lower.

    • The city of Coachella has the lowest median selling time for detached homes at 17 days, followed by Cathedral City at 33 days, then Desert Hot Springs at 34 days.

    • In the attached market, Desert Hot Springs has the short average selling time at 29 days, followed by Palm Springs at 32 days.

  • Price Discounts/Premiums:

    • In July, 17.9% of homes sold above list price, compared to 48.3% a year ago.

    • Every city but Coachella is averaging a selling discount for detached homes, which range from -.3% in Cathedral City to -2.9% in Rancho Mirage and Indian Wells.

    • Discounts for attached homes range from -.8% in Indio to -6.1% in Bermuda Dunes.

MARKET REPORT 2023, June 1st-30st

Prices: The median price of a detached home decreased by 1.4% year-over-year to $690,000. The median price of an attached home decreased by 3% year-over-year to $475,000.

  • Sales: The three-month average of sales rose three units this month to 772 units a month. Every city except La Quinta and Coachella has lower three-month sales, but the comparative numbers to last year are improving.

  • Inventory: Valley inventory was 1,741 units, which is a little more than one hundred less than last month. The “months of sales” ratio was 3.0 months, which is .2 month less than last month but 1.3 months more than last year.

  • Days on market: The median number of “days in the market” in the Coachella Valley was 40 days, which is four less than last month but 19 days more than last year.

  • Price discounts/premiums: In June, 17.2% of sales sold above list price, compared to 55% a year ago. Every city is averaging a selling discount for detached homes, which range from -.1% for Coachella to -3.6% for Indian Wells. Discounts for attached homes range from -1.6% in Cathedral City to -5.4% in Bermuda Dunes.

Here are some bullet points of the key takeaways:

  • Prices of detached homes decreased by 1.4% year-over-year.

  • Prices of attached homes decreased by 3% year-over-year.

  • The three-month average of sales rose three units this month.

  • Valley inventory was 1,741 units, which is a little more than one hundred less than last month.

  • The “months of sales” ratio was 3.0 months, which is .2 month less than last month but 1.3 months more than last year.

  • The median number of “days in the market” in the Coachella Valley was 40 days, which is four less than last month but 19 days more than last year.

  • In June, 17.2% of sales sold above list price, compared to 55% a year ago.

MARKET REPORT 2023, May 1st-31st

SALES: The three-month average of sales rose again this month to 769 units a month from 665 last month. It’s occurring in both the detached and attached market. Some of this is seasonal, but a lot is due to a general recovery in the market. Of the large cities, La Quinta and Palm Desert have the smallest percentage sales declines of 18% and 19% respectively. The largest percentage declines were in Desert Hot Springs, down 48%, followed by Bermuda Dunes, down 39% and Cathedral City, down 34%.

PRICES: The median price of a detached home in the Coachella Valley ended May at $695,000, down just .7% year over year. The median attached price rose $5,000 in May to end at $485,000. This is a very small decline, and the market continues to hold the price gains of the last five months. The current price is only 1.2% below last May’s record price of $491,056. Just like last month, every city but Desert Hot Springs has a year over year price decline in its average size detached home. The declines range from -2.2% for La Quinta to -14.7% for Indian Wells. Desert Hot Springs is unchanged. Price changes in the attached market have a broader range, which goes from 18.5% in Desert Hot Springs to -10.1% in Indio.

INVENTORY & “MONTHS OF SALES” RATIOS: On June 1st, inventory was 1,867 units, which is only nine units less than last month. Inventory has effectively remained unchanged for the last eight months. The Valley’s “months of sales” ratio was 3.2 months, which is .1 month higher than last month but almost two months greater than last year. Four cities now have ratios of three months or less – Coachella, Cathedral City, Indio, and Palm Desert. What’s notable is how close the ratios are in each city. No city has a ratio over four months.

DIM: At the end of May, the median number of “days in the market” in the Coachella Valley was 44 days, which is four less than last month but 24 days more than last year. In the attached market, Cathedral City has the shortest median selling time at 22 days. The city of Coachella continues to have the lowest median selling time for detached homes at 21 days. This is followed by 35 days for Desert Hot Springs, then Bermuda Dunes at 36 days.

PRICE DISCOUNTS/PREMIUMS: In May, 17% of sales sold above list price compared to 58.3% a year ago. This is a slight increase from last month. Every city but Coachella has an average selling discount for detached homes, which range from - .7% for Desert Hot Springs to -3.4% for Indian Wells. The city of Coachella has an average premium of .2%. Attached homes range from average discounts of -1.6% in Cathedral City to -6.4% in Bermuda Dunes.

MARKET REPORT 2023, April 1st-30th

SALES: The three-month average of sales rose to 665 units per month from 545 units last month. Most of this increase can be attributed to seasonal factors, and we anticipate the average to continue rising for another month. The 12-month average of sales, which accounts for seasonality, shows an average of 601 units sold per month. However, it is worth noting that this marks the 21st consecutive monthly decline. The largest percentage declines in sales were observed in Cathedral City, down 50%, followed by Desert Hot Springs, down 47%, and Indio, down 36%. On the other hand, the cities of Coachella and Palm Desert experienced the smallest percentage declines, with reductions of 18% and 22% respectively.

PRICES: The median price of a detached home in the Coachella Valley ended the month at $685,000, indicating a year-over-year increase of 1.5%. In contrast, the median attached price saw a significant surge of $20,000 in April, reaching $480,000. This marks the second consecutive month of strong price growth, and the current price is only 2% lower than the record price of $491,000 recorded in May of the previous year. It is worth mentioning that every city, except Desert Hot Springs, experienced a year-over-year price decline in the average size of detached homes. The price setbacks in cities like La Quinta, Indio, and Palm Desert ranged from -2.2% to -5%. Notably, the largest declines were observed in the high-end cities of Indian Wells and Palm Springs. Prices in the attached market, however, remained relatively stable.

INVENTORY & "MONTHS OF SALES" RATIOS: On May 1st, the inventory in the Valley consisted of 1,876 units, which is 100 units fewer than the previous month, but 1,017 units higher than the same period last year. Despite the low sales environment, inventory levels are not increasing significantly due to the fact that monthly new listings continue to remain close to historic lows. The "months of sales" ratio for the Valley on May 1st stood at 3.1 months, slightly lower than the previous month. This ratio, which measures the balance between supply and demand, is slightly below the historic averages for this time of year. It is worth noting that four cities in the Valley now have ratios of three months or less, namely Coachella, Cathedral City, Indio, and Palm Desert. Furthermore, the median number of "days in the market" in the Coachella Valley at the end of April was 48 days, remaining the same as the previous month but 27 days higher than the previous year. This ratio still remains below the pre-pandemic average of 65 days.

PRICE DISCOUNTS/PREMIUMS: In April, 15.2% of sales closed above the list price, compared to 55.9% during the same period last year. It is important to note that every city has an average selling discount for detached homes, ranging from 0.0% for Coachella to 3.5% for La Quinta. In the attached homes market, average discounts range from 1.6% in Cathedral City to 4.6% in Bermuda Dunes.