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Local real estate market experts, Market Watch LLC have just released their December 2018 Coachella Valley Desert Housing Report and we wanted to share their findings and opinions with you:
The Coachella Valley detached home median price in December was $389,944 (up $20,494 or 5.5% over the Coachella Valley detached home median price in December 2017).
The Coachella Valley attached home median price was $273,000 (up $28,000 or 11.4% over the Coachella valley attached home median price in December 2017). Market Watch’s analysts noted that because we have entered the part of the year that historically is very positive for attached home prices and because we are also beginning this period from a relatively high price level, they expect the attached home median price to move up through the 3% growth curve and possibly reach $300,000 during the upcoming year.
Market Watch’s analysts commented that other than in La Quinta and Indian Wells, the changes in the detached home median price ranged from 4.5% to -4.3%. Further, they noted that the attached home median prices by city faired better than the detached home median prices by city. Other than in La Quinta and Indian wells, the changes in the attached home median price ranged from 25.1 % to 7.7%.
Market Watch’s analysts pointed out that the average attached home sales (using a 12-month moving average) in 2018 was 296 units per month (5 more units than in 2017). The average detached home ed homes was 535 units per month (3 more units that in 2017). Total home sales averaged 831 units per month compared to 829 units in 2017. Market Watch felt that these long-term averages should gradually begin to show lower sales numbers in 2019 compared to 2018.
Nine cities have lower home sales compared to December 2017. Only one city (Thousand Palms) had higher home sales, while only one city (La Quinta) had the same sales compared to December 2017. Market Watch’s analysts also noted that the two cities with the highest home sales numbers, Palm Springs and Palm Desert, registered the biggest declines in year-over-year home sales. In December, Palm Desert averaged 135 homes sold versus 156 homes sold in December 2017. Palm Springs averaged 148 home sales in December versus 164 home sales in December 2017.
Home sales continued to increase in the higher price brackets and decline in lower brackets in December. Sales of homes priced under $300k, which account for 37% of all Coachella Valley home sales, were down 25% year-over-year. Sales of homes priced from $300k to $400k were slightly less in December than in December 2017. Sales of homes above $700k were just slightly higher than in December 2017.
Coachella Valley housing inventory on January 1st was 3,398 units (355 less than on January 1st, 2018). Market Watch’s analysts commented that this is the lowest January 1st inventory level in the last six years and shows that, while demand is slowing as represented by contracting sales, the supply of homes for sale remains under control. As long as these two forces remain somewhat in balance, as they currently are, Market Watch felt that home prices should remain firm.
Market Watch’s analysts explained that the balance between supply and demand in housing is best measured by the ratio known as months of sales. The ratio on January 1st was 4.1 months, which is the lowest January 1st ratio in the last six years. Market Watch’s analysts noted that the median number of days on the market (57 days) is at the lowest level in the last six years and appears to still be trending downward.
The Months of Sales ratios continued to be lower across all price brackets compared to a year ago. Market Watch felt that this shows that the current balance of supply and demand is across all price brackets of the market. The highest Months of Sales ratio was for homes priced above $1 million at 12.6 months (compared with 14.8 months on January 1st, 2018).
The Months of Sales ratios in 10 of the region’s 11 cities was less than it was a year ago. Only Indio, at 3.6 months, has a higher Months of Sales higher ratio that last year (3.2 months).