Our local real estate market experts, Market Watch LLC, have just released their April 2024 Desert Housing Report. Some highlights:

COACHELLA VALLEY APRIL HOME SALES RECOVERY: Coachella Valley home sales in April were 19.8% below normal (where normal was calculated from April Coachella valley home sales in the pre-pandemic years 2016, 2017, 20-18 and 2019). Market Watch noted that this home sales recovery measure was another improvement from March. Further, they stated that they hope to see Coachella Valley home sales return to normal levels by the end of the year.

COACHELLA VALLEY APRIL DETACHED HOME MEDIAN PRICE: The median price of a detached home in the Coachella Valley in April reached an all-time record high of $724,523 (up 6.6% from $679,900 in April 2023). Market Watch noted that Coachella Valley detached home median prices usually peak in May or June due to seasonal patterns. While Market Watch believes that pattern will occur this year, they also believe that with inventory rising and sales growing at a slower rate, supply and demand will soon begin to favor buyers.

COACHELLA VALLEY APRIL ATTACHED HOME MEDIAN PRICE: The median price of an attached home in the Coachella Valley in April was $500,000 (up 4.2% from $480,000 in April 2023). Market Watch noted that since attached home median prices seem to be following the normal seasonal pattern, they expected them to continue to increase for one or two more months.

COACHELLA VALLEY APRIL TWELVE MONTH CHANGE IN THE PRICE OF AVERAGE SIZE HOMES BY CITY: Year-over-year changes in the price of the average size detached home by city ranged from an increase of 18.2% for the average size 3,450 sq ft detached home in Indian Wells to a decrease of 4.2% for the average size 1,600 sq ft detached home in Desert Hot Springs. Year-over-year changes in the price of the average size attached home by city ranged from an increase of 7.6% for the average size 1,050 sq ft attached home in Indio to a decrease of 11.4% for the average size 1,950 sq ft attached home in Indian Wells.

COACHELLA VALLEY APRIL MONTHLY HOME SALES (THREE MONTH AVERAGE): In April, the three-month average of Coachella Valley home sales was 716 homes sales per month (up slightly from 704 homes sales per month in April 2023). Market Watch noted that because of seasonality, it was difficult to determine where home sales stood on a historical basis. However, they pointed out that the Sales Recovery data shows that while home sales improved, they were still 19.8% below historic norms (calculated from April home sales in the years 2016-2019).

COACHELLA VALLEY APRIL MONTHLY HOME SALES (TWELVE MONTH AVERAGE): In April, the 12-month average of Coachella Valley home sales was 624 homes per month (down slightly from 628 homes sales per month in April 2023). Market Watch stated that they believe home sales will recover when mortgage rates come back down to the 5.5% to 6% range, with recent declines in inflation giving them hope that this is not too far away.

COACHELLA VALLEY APRIL HOMES SALES BY CITY: In April, Palm Desert had the highest average home sales at 160 home sales per month (compared with an average of 176 home sales per month in April 2023), followed by Palm Springs with 157 average home sales per month (compared with an average of 138 home sales per month in April 2023). Average home sales were higher than last year in Palm Springs (again, with an average of 157 home sales per month compared with 138 home sales per month in April 2023) and Indian Wells (with an average of 35 home sales per month compared with 23 home sales per month in April 2023). Home sales in most of the other Coachella Valley cities were comparable to April 2023 levels.

COACHELLA VALLEY APRIL HOMES SALES BY PRICE RANGE: The largest year-over-year home sales increases were in homes priced over $1 million. For homes priced between $1 million and $1.999 million, monthly average homes sales were 137 home sales per month (up 21.2% from 113 home sales per month in April 2023). For homes priced at or above $2 million, monthly average homes sales were 51 home sales per month (up 15.9% from 44 home sales per month in April 2023). Home sales in most price ranges (other than homes priced under $400,000) were comparable to April 2023. Market Watch commented that this showed that the housing market was well balanced in most price ranges.

COACHELLA VALLEY APRIL MONTHLY HOMES SALES IN DOLLARS: In April, Coachella Valley home sales averaged $669 million (up 10.8% from monthly sales of $604 million in April 2023). Market Watch noted that the monthly home sales by dollar showed the same seasonal pattern as monthly home sales but with different relative highs and lows due to home price changes over time.

COACHELLA VALLEY APRIL MONTHLY HOMES SALES IN DOLLARS BY CITY: Monthly average homes sales in dollars increased in Palm Springs (at $161.8 million up 29.3% from $125.1 million in April 2023), Rancho Mirage (at $88.5 million up 9.1% from $81.1 million in April 2023), Indian Wells (at $60.6 million up 65.6% from $36.6 million in April 20232) and Bermuda Dunes (at $8 million up 14.3% from $7 million in April 2023). Market Watch pointed out that home sales in dollars in Rancho Mirage and Indian Wells, rank higher than their unit sales because of the effect of their higher priced homes. Since revenue depends more on dollar sales than unit sales, Market Watch stated that this data is a better proxy for revenue than unit sales.

COACHELLA VALLEY APRIL MONTHLY HOME SALES IN DOLLARS BY PRICE RANGE: Monthly average home sales by price bracket showed monthly home sales of $189.1 million for homes priced between $1 million and $1.999 million (up 21.1% from $156.1 million in April 2023). Monthly home sales of homes priced over $2 million were $183 million in April (up 16.5% from $157.1 million in April 2023). Market Watch noted that these large dollar sales numbers were more accentuated than the unit sales for these same price ranges. They pointed out that monthly home sales in dollars in these two brackets in April accounted for approximately 50% of all monthly home sales in dollars in the Coachella Valley.

COACHELLA VALLEY HOME SALE INVENTORY ON MAY 1ST: On May 1 st, Coachella Valley home sale inventory was 2,597 units (up 696 homes or 36.6% from 1,901 homes on May 1st 2023 and the highest inventory level in almost four years). However, Market Watch noted that while inventory has improved, this current level was about 1,000 units under what was normal before the pandemic. Further they felt that some of this inventory increase was seasonal, but the same seasonal pattern now suggests the current inventory level may be at or near the high for 2024, since inventory usually declines between March and September.

COACHELLA VALLEY HOME SALE INVENTORY BY CITY ON MAY 1ST: On May 1st, the highest inventory levels were in Palm Springs with an inventory of 630 homes (up 188 homes or 42.5% from 442 homes on May 1st, 2023), Palm Desert with an inventory of 539 homes (up 128 homes or 31.1% from 411 homes on May 1st, 2023 and La Quinta with an inventory of 364 homes (up 82 homes or 29.1% from 282 homes on May 1st, 2023). Market Watch did note that this data helps to show where the homeowners with the greatest selling interest are and how their interest compares to last year.

COACHELLA VALLEY HOME SALE INVENTORY BY PRICE RANGE ON MAY 1ST: The highest inventory level was for homes priced over $1 million. For homes priced between $1 million and $1.999 million, there was an inventory of 472 homes on May 1st (up 111 homes or 30.8% from 361 homes on May 1st, 2023). For homes priced at $2 million or above, there was an inventory of 269 homes on May 1st (up 59 homes or 28.1% from 210 homes on May 1st, 2023). Market Watch noted that this data helps determine what price brackets might be responsible for the growth or contraction of inventory.

COACHELLA VALLEY REGIONAL MONTHS OF SALES RATIO ON MAY 1ST: On May 1st, the Coachella Valley’s months of sales ratio was 4.2 months (up 1.2 months or 40% from 3 months on May 1st, 2023). Market Watch noted that this fundamental ratio, which measures supply and demand, is now back to pre-pandemic levels. They pointed out that even though inventory is still relatively low, the low sales numbers have kept supply and demand in balance, which is one major reason why Coachella Valley home prices have remained firm over the last twelve months.

COACHELLA VALLEY MONTHS OF SALES RATIO BY CITY ON MAY 1ST: Months of sales ratios varied from a low of 2.2 months in Indian Wells to 4.3 months in Indio. Market Watch noted that since months of sales is really the supply-demand equation for housing, this data shows if the housing market is balanced. They noted that most of the Coachella Valley cities had ratios between three and four months and that this consistency was a good sign.

COACHELLA VALLEY MONTHS OF SALES RATIO BY PRICE RANGE ON MAY 1ST: Months of sales ratios varied from a low of 2.7 months for homes priced between $400,000 and $499,000 to 5.3 months for homes priced at or above $2 million. Again, Market Watch noted that since months of sales is really the supply-demand equation for housing, the consistency in months of sales ratios showed that the housing market was relatively balanced in all price ranges. They did report noticing a slight increase in year over year months of sales ratios for homes priced between $600,000 and $1 million.

COACHELLA VALLEY APRIL DAYS IN THE MARKET: At the end of April, the median number of days in the market in the Coachella Valley was 44 days (up from 43 days in April 2023). Market Watch noted that the median selling time in the region has been stable for the last three months and that they believe the median selling time will remain around current levels continuing into the year.

COACHELLA VALLEY APRIL DAYS IN THE MARKET BY CITY: In April, Coachella continued to have the shortest average selling time at 27 days (down from 36 days in April 2023). This was followed by Palm Springs at 40 days (up from 39 days in April 2023) and Indian Wells at 41 days (down from 56 days in April 2023). Bermuda Dunes had the longest average selling time at 54 days (down from 60 days in April 2023).

COACHELLA VALLEY APRIL DAYS IN THE MARKET BY PRICE RANGE: In April, the shortest average selling time was 37 days for homes priced between $400,000 to $499,000 (down from 48 days in April 2023). The longest average selling time was 50 days for homes priced between $700,000 to $799,000 (down from 52 days in April 2023). Market Watch advised that an abnormal high number of days in the market could be an indicator of a slight market disruption in that price range.

COACHELLA VALLEY APRIL REGIONAL PRICE PREMIUM/DISCOUNT FROM LIST PRICE: In April, both detached and attached homes were selling at average discounts from list price over 2% (an average discount of 2.3% for detached homes and 2.6% for attached homes). Market Watch pointed out how close the average price discounts were for both detached and attached homes, with trends for the two moving up and down together. They also noted that current discounts from list price seemed in line with the pre-covid averages.

COACHELLA VALLEY APRIL DETACHED HOME AVERAGE DISCOUNTS FROM LIST PRICE BY CITY: In April, Desert Hot Springs had the lowest average selling discount for detached homes at 0.4% (down from 1.2% in April 2023), while the highest average selling discount was 3.8% in both Rancho Mirage and Bermuda Dunes (up from 3.4% in Rancho Mirage in April 2023 and 3.1% in Bermuda Dunes in April 2023).

COACHELLA VALLEY APRIL DETACHED HOME AVERAGE DISCOUNTS FROM LIST PRICE BY PRICE RANGE: In April, the lowest average selling discount was 1.6% for homes priced between $400,000 to $499,000 (down from 2.0% in April 2023). In April, the highest average selling discount was 3.8% for homes priced over $2 million (down from 4.3% in April 2023). Market Watch noted that as a general rule, the average price discount from list price increases with higher priced homes.

COACHELLA VALLEY APRIL PERCENTAGE OF HOMES SELLING OVER LIST PRICE: In April, the percent of homes selling in the Coachella Valley over list price was 14.8% (down slightly from 15.1% in April 2023). Market Watch continues to expect that the number of homes selling above list will remain at approximately one out of seven.

THE BRIGGS GROUP | COLDWELL BANKER | Laurie Briggs - DRE# 01896117 | Tim Briggs - DRE# 01898254 | Amy Baxa - DRE 02059963 | Coldwell Banker Realty - DRE# 00616212