Local real estate market experts, Market Watch LLC recently reported their analysis of the Coachella Valley’s March real estate market data.  Some of the highlights are:

  • All major housing metrics indicate a strong market for detached homes, with the Coachella Valley median price for detached homes hitting a 10-year high of $366,285 in March. This represents a 9.3% increase in median price from March of last year;
  • The metrics for attached homes reflect a neutral market, with the Coachella Valley condominium median price hitting $249,000 in March.  While this represents a 3.8% increase in median price from March of last year, it is 1.5% less than it was in March 2014. Market Watch’s analysts feel that a lot of this weakness is due to 75% of attached owners being from outside the region. With these buyers surging into the region during the winter and exit during the summer, the effect is to create highs and lows in demand that align with the season;
  • Looking at median prices for detached homes on a city-by city basis, eight cities show increases in median prices from March of last year (with only Rancho Mirage showing a decrease in median price versus March 2016). The increases in median prices for detached homes ranged from a high of 21.7% for Desert Hot Springs to a low of 2.7% and 2.6% respectively for Cathedral City and Coachella City;
  • Palm Springs, with a median price detached home price of $584,000, is now only 2.7% short of its all-time high median detached home price of $600,000 in 2006;
  • Longer term measurements of Coachella Valley home sales, which take out seasonality, continue to grow at an accelerating pace, with average total sales over the last twelve months in March reaching 770 units per month (an increase of 11.6% over average total sale in March last year). Market Watch’s analysts expect average total sales to reach over 800 units per month by June or July;
  • Three month sales of homes in March were higher in every city in the Coachella Valley, except for Coachella and Desert Hot Springs. The largest increases in three month sales were in La Quinta and Palm Desert. In La Quinta, three month average sales of 131 units per month were 39.3% higher than in March 2016; in Palm Desert, sales of 177 units per month were 34% higher than in March 2016.  In Rancho Mirage, three month average sales of 77 units per month, showed an increase of 36% over those in March 2016;
  • Home sales by price range showed increases in every price bracket except for sales under $200k. The largest increases in sales were in two price brackets; $300k to $400k where sales increased by 40% over March 2016 and sales of homes priced over one million dollars, where sales increased by 31% over March 2016;
  • Inventory appears to have peaked in March and started its usual downward path into summer. However, this trend is starting at a much lower inventory number than in the last two years. On April 1st, Coachella Valley housing inventory was 4,724 units, almost 1,100 units less than on April 1st, 2016 and 305 units less than on April 1st, 2015;
  • With lower inventory and higher sales, the “months of supply” ratio continues to improve to 6.1 months on April 1st, versus 8.4 months a year ago;
  • The “months of supply” ratio improved in every price bracket, especially in those above $500k. At the high end of the market, the “months of supply” ratio for homes priced over one million dollars stood at 18.7 months, versus 24.5 months in March 2016; and
  • Every major city in the Coachella Valley showed considerable improvement in its “months of supply” ratio except for Coachella, which saw its “months of supply” ratio increase to 2.5 months from 2.1 months in March 2016. Six cities, Coachella, Thousand Palms, Indio, Desert Hot Springs, Cathedral City and Palm Springs, now have “months of supply” ratios below 5 months. Palm Desert showed a “months of supply” ratio of 6.4 months (versus 9.2 months in March 2016); La Quinta showed a “months of supply” ratio of 8 months (versus 11.6 months in March 2016); Rancho Mirage showed a “months of supply” ratio of 10 months (versus 13.6 months in March 2016); and Indian Wells showed a “months of supply” ratio of 12.9 months (versus 16.9 months in March 2016).

The Desert Housing Report is a joint production between the California Desert Association of REALTORS® (“CDAR”) and the Palm Springs Regional Association of REALTORS® (“PSRAR”) and is intended as a member benefit for members of CDAR and PSRAR.