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Greater Palm Springs area real estate market experts, Market Watch LLC., have just release their August 2019 Desert Housing Report. Over all, Market Watch felt that all of the housing metrics in the Coachella Valley are showing very positive readings. In fact, they noted that there was not one negative or cautious indication for the coming season that they were aware of. Some of the other highlights:
While the Coachella Valley median detached home price in August declined slightly to $411,000 (up 5.4% year-over-year). Market Watch noted that this decline in median price was due to normal, seasonal factors.
The Coachella Valley median attached home price in August was $278,000 (up 3% year-over-year). Based on precedent, Market Watch expected another two months of slack prices before prices begin to surge again moving into next year’s market. They expected median attached home prices to continue strong into next year.
On a city by city basis, Market Watch noted fairly strong increases in median detached home prices year-over-year (with the exception of Indio, Palm Desert and La Quinta). They also noted that the median detached home price in Palm Springs now stands at $659,000, up 14.2% year-over-year and almost 10% above the previous all-time high median detached home price reached in Palm Springs during the 2006 and 2007 bubble years. Median detached home prices were also up year-over-year in Coachella (+14.2%), Desert Hot Springs (+9.1%), Rancho Mirage (+8.7%) and Cathedral City (+8.3%). In the case of attached homes, median prices in all Coachella Valley cities remain, at a minimum, 23% below the all-time high median attached home prices reached in 2006-2007. Year-over-year, the strongest year-over-year median attached home price gains were in Cathedral City (+19.7%), Indian Wells (+6.9%) and Palm Desert (+6.8%). Median Attached home prices were down in Desert Hot Springs (-7%), Indio (-7%), La Quinta (-5.8%) and Rancho Mirage (-2%).
Total three-month average sales in August averaged 876 units a month (14 higher than a year ago). Detached home sales averaged 587 units (up 30 units year-over-year). Market Watch noted that this is the first time in over a year that year-over year sales have increased.
In terms of home sales by city, Market Watch noted increased home sales in Indio, La Quinta, Palm Desert and Palm Springs (the 4 largest markets in the Coachella Valley). Home sales also increased slightly in Desert Hot Springs and Indian Wells. Home sales decreased slightly in Rancho Mirage and Cathedral City. Market Watch noted increased sales of homes priced over $900,000. More particularly, sales of homes priced between $900,000 and $1M were up 30%, while sales of homes priced over $1M were up 18%. Market Watch also took note of the fact that the decrease in sales of homes priced under $300,000 was due to the fact that there were fewer homes for sale in this price range.
On September 1st, there were 2,641 units for sale, which is the lowest September inventory number in over five years. Market Watch felt that while low inventory numbers were good for prices, they also make it very difficult for homebuyers to find something to purchase. Further, they noted that there is no sign of any inventory problem creating undue or negative selling pressure anywhere in the Coachella Valley.
On September 1st, the months of sales ratio (inventory divided by the average sales rate over 12 months) was 3.3 months, the same as one year ago and the lowest level in five years. The median value of days on the market was 68 days (2 days more than it was last year). Market Watch pointed out that both of these indicators are currently positive which points to the continuation of the trend to higher prices.
Market Watch noted that the months of sales ratios is healthy in all of the different price brackets. At the current sales rate, the inventory of homes priced under $200,000 would be gone in 1.8 months. On the other end of the price spectrum, the inventory of million-dollar homes would be gone in 7.3 months.
The month of sales ratio by city shows that all of the Coachella Valley’s cities have comparable ratios to last year, with the exception of Rancho Mirage and Indian Wells. Market Watch did point out that the higher ratios in these cities were still at acceptable levels.
Lastly, the latest Sale Price Discount from List was -2.0%, which was the same as last month and last year. This ratio means the average home listed for $400,000 sold for $392,000 (an $8,000 price discount).
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