Local real estate market experts, Market Watch LLC, have just released their October 2017 market update. Some of the highlights include:

 

The October Coachella Valley detached home median price was $350,000 ($10,000 or 2.9% above a year ago). Market Watch pointed out that median price increases for detached homes have settled just below the 4% growth curve as they tend to do every autumn.  

The median price for Coachella Valley attached homes and condominiums in October was $235,000, ($8,125 or 3.6% above a year ago). Market Watch felt that this is particularly encouraging for the attached housing market, because in the previous four years there was zero to negative year-over-year median price change in October. Market Watch noted that attached home and condominium median prices might finally break above the long term 3% growth curve this spring buying season.

The year-over-year change in detached home median home prices for the nine cities in the Coachella Valley shows overall strong gains but also wide variation in the numbers (ranging from a 16.2% increase in Desert Hot Springs to a 4.3% decrease in Indian Wells). In the case of attached homes, there is an even wider spread in year-over-year median price changes (ranging from a 23% gain in Rancho Mirage down to a 29% decrease in Desert Hot Springs, perhaps due to an unusually low number of sales in Desert Hot Springs). This chart also shows the detached home median price remains more than 30% off 2006 highs in Palm Desert, Rancho Mirage, Indian Wells and La Quinta. In terms of attached homes, median prices remain more than 40% off 2006 highs in Palm Springs, Cathedral City and Desert Hot Springs. 

The 12-month average of home sales, which takes out seasonality and also highlights the long-term perspective, is 15% higher than last October for detached homes and 14% higher than last October for attached homes. Market Watch noted that since sales in the off season have been a good predictor of how sales in the spring season will be, current sales numbers are pointing to 5% to 10% sales increase in 2018 over 2017.

Eight cities had higher October sales when compared to last year, while three had slightly lower sales,  with the largest percentage sales increases (21%) in Cathedral City and Rancho Mirage. In Indian Wells sales were up 18% year-over-year and in Palm Springs sales were up 3% year-over-year. Sales decreased slightly in Bermuda Dunes, Coachella and Desert Hot Springs.

In terms of sales by price range, compared to a year ago, sales increased in all but one of the brackets. The largest increase in sales was in homes priced from $300,000 to $400,000. The only decline in sales were those homes selling between $200K and $300K (due to the lack of supply in this price range).

Market Watch noted that on November 1st, Coachella Valley housing inventory appears to have started its normal seasonal rise, with a 384 unit increase in inventory from October 1st to November 1st. Market Watch felt that this was a positive, primarily due to the higher sales over the off season. The net result is that the November 1st inventory of 3,625 was 725 units less than last year.

The combination of higher sales over the last 12 months and a lower inventory made the months of supply ratio on November 1st equal 4.4 months (the lowest ratio on that date for the region since 2012 and the number one indicator of the strengthening housing market, in Market Watch’s opinion). Market Watch noted that this strength was confirmed by the other similar time indicator, days on the market, which had an October median value of 70 days (the lowest number of days in October since 2013).

In terms of months of supply by price range, the ratios improved in all price brackets, which Market Watch felt indicated that the Coachella Valley’s improving housing market is broad based and strengthening through all price ranges.

In terms of months of supply by city, compared to last year the ratios improved in every city except Coachella, Desert Hot Springs and Bermuda Dunes.

The Desert Housing Report is produced for Coachella Valley real estate agents through the sponsorship and cooperation of the Palm Springs Regional Association of Realtors® (PSRAR) and the California Desert Association of Realtors® (CDAR) by Market Watch LLC.