Local real estate experts, Market Watch LLC, have just released their June 2019 Desert Housing Report. Some of the highlights:
The detached home median price in the Coachella Valley in June was $427,000 (an increase of 2.5% year-over-year). Market Watch’s analysis noted that historically June marks the beginning of a few months of price give back over the hot summer months.
The Coachella Valley attached home median price in June was $292,500 (an increase of 4.8% year-over-year). Market Watch’s analysis pointed out that for the last nine years, the attached home median price reached its seasonal peak in June, followed by four months of price giveback. They expect this to continue.
On a city by city basis, eight of the nine regional Coachella Valley cities saw year-over-year increases in detached home median prices. Indian Wells and La Quinta lead the pack with double-digit gains. Palm Springs ended June with the detached home median price of $669,500 (11.6% above the 2006 all-time high detached home median price. Palm Springs ended June with a median detached home price of $669,500, which is now 11.6% above the 2006 all-time high detached home median price. Palm Desert was the only Coachella Valley city experiencing a year-over-year decrease in detached home median prices (down 8% year-over-year and 23.8% below the 2006 all-time high detached home median price). Five cities (La Quinta, Indian Wells, Palm Desert, Cathedral City and Palm Springs) experienced year-over-year increases in their attached home median prices. Three Coachella Valley cities (Rancho Mirage, Indio and Desert Hot Springs) experienced decreases in their attached home median prices.
Market Watch’s analysis showed that total home sales (three-month moving average) were 980 units per month (down 5% from total sales of 1039 units per month one year ago). Detached home sales were down 2% year-over-year and attached home sales were down 12% year-over-year. Nevertheless, in Market Watch’s opinion the surge in total home sales since February is the strongest they’ve seen in the last five years.
Of the 11 cities in the Coachella Valley, only two cities showed higher three-month average sales year-over-year (Cathedral City with 82 units per month versus 77 units per month a year ago, and Desert Hot Springs, with 57 units per month compared to 54 units per month a year ago).
The primary drop in sales were for homes priced under $400,000, due to the dwindling supply of homes in this price range. In the $200,000 to $300,000 price bracket, sales were down 11.8% year-over-year. In the $300,000 to $400,000 price bracket, sales fell from 239 units down to 217 (down 9.2%). Sales of homes priced over $1 million were off 6% from last year.
Coachella Valley housing inventory on July 1st stood at 3,010 units (28 units less than July 1st of last year and the lowest inventory level in the last five years). Market Watch noted that inventory has a very seasonal pattern, reaching peaks usually in the month of March and hitting lows sometime in September or October.
On July 1st the months of sales ratio (inventory divided by the average sales rate over 12 months) was 3.8 months. In the Coachella Valley any ratio under four months is near historically low numbers. Days on the market at 66 days is almost identical to what it was a year ago.
The months of sales ratio for homes priced under $600,000 are all slightly higher than they were a year ago. The months of sales ratios for homes priced over $600,000 are all lower than they were at the same time last year. The month of sales ratio for homes over $1 million stood at 10 months (effectively equal to what it was a year ago).
Five cities (Cathedral City, Coachella, Thousand Palms, Palm Springs and La Quinta) have lower months of sales ratios than at the same time last year. Rancho Mirage, Indian Wells, Desert Hot Springs, Palm Desert, Indio and Bermuda Dunes show higher months of sales ratios than at the same time last year.
The latest “Sale Price Discount from List” is -2.0% (0.1% less than a year ago). This ratio means the average home listed for $400,000 sold for $392,000, or a $8,000 price discount.
California, Southern California, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Desert Hot Springs, Palm Desert, Indian Wells, La Quinta, Bermuda Dunes, Indio, Thermal, Thousand Palms, Coachella, real estate, market update, desert housing, housing prices, May, May 2019, The Briggs Group, Tim Briggs, Laurie Briggs, Berkshire Hathaway HomeServices California Properties, BHHS CA Property
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