Our local real estate market experts, Market Watch LLC, have just released their December 2021 Desert Housing Report, which serves as a year end Coachella Valley residential real estate market update. Some highlights:
Coachella Valley Detached Median Price: The detached home median price in the Coachella Valley in December was $615,000 (up 18.3% from $520,000 in December 2020). Market Watch’s analysis stated that for at least the last 15 years, December has marked the beginning of a seasonal period of detached home price strength. They stated that they expect this pattern to continue into 2022.
Coachella Valley Median Attached Price: The attached home median price in the Coachella valley in December was $402,900 (up 22.5% from $329,000 in December 2020). Market Watch’s analysis stated that historically attached homes have also shown a strong seasonal period of price strength, usually beginning in November and carrying through until May. They stated that they expect this pattern to continue into 2022.
Twelve Month Change in The Price of The Average Size Home By City: Price changes for the average size detached home in each city in December ranged from an increase year-over-year of 49.2% in Bermuda Dunes (for the average size detached home in that city of 2,500 sq ft) to an increase year-over-year of 22.3% in Cathedral City (for the average size detached home in that city of 1,800 sq ft). Price changes for the average size attached home in each city in December ranged from an increase year-over-year of 60.4% in Desert Hot Springs (for the average size attached home in that city of 750 sq ft) to an increase year-over-year of 30.4% in Palm Springs (for the average size attached home in that city of 1,250 sq ft).
Monthly Home Sales (Three Month Trailing Average): Total Coachella Valley monthly home sales in December averaged 878 homes (down 21.5% from average total Coachella Valley monthly home sales of 1,119 homes in December 2020). Market Watch stated that December 2021 total average monthly home sales were still significantly higher than total average December monthly home sales in the pre-pandemic period from 2016 to 2019 (where total average monthly homes sales ranged from a low of 685 homes in December 2018 to a high of 755 homes in December 2017). Monthly sales of detached homes averaged 626 homes in December (down 17.5% from average monthly sales of 759 homes in December 2020). Monthly sales of attached homes averaged 252 homes in December (down 30% from average monthly attached home sales of 360 homes in December 2020).
Monthly Sales (Twelve Month Trailing Average): Market Watch explained that the twelve month average of homes sales removes the “seasonality” from Coachella Valley home sales data. Average total monthly home sales in December were 1,016 homes (up 11.6% from average total monthly home sales of 910 homes in December 2020). Average monthly sales of detached homes in December were 702 homes (up 10% from average monthly detached home sales of 638 homes in December 2020). Average monthly sales of attached homes in December were 314 homes (up 15.4% from average monthly attached home sales of 272 homes in December 2020). Market Watch noted that they expect long term home sales to slowly decrease from the June highs but still stay above pre-pandemic norms.
Home Sales by City: Market Watch noted that average home sales in each Coachella Valley city showed that the overall Coachella Valley home sales decline was primarily due to a decline in home sales in the four higher priced cities of La Quinta, Palm Desert, Palm Springs and Rancho Mirage. Home sales in Bermuda Dunes were the same as in December 2020, while home sales in Cathedral City were only down 7.6% year-over-year. Home sales in Coachella and Desert Hot Springs increased year-over-year.
Home Sales by Price Range: Market Watch noted that the year-over-year decrease in home sales was limited to those homes priced under $500,000. Year-over-year sales of homes priced over $500,000 increased. Market Watch felt that some of this was due to the fact that home price increases have resulted in fewer homes listed for under $500,000. They went on to note that sales of homes priced under $400,000 used to be composed of sales of both detached and attached homes, with a focus on attached homes. Now, there are very few detached homes priced under $400,000.
Coachella Valley Home Sale Inventory: On January 1st, the total home sale inventory in the Coachella Valley was 607 homes (down 59.7% from 1,507 homes on January 1st, 2021). Market Watch noted that this is the lowest inventory level on record. They also pointed out that time wise, we are at the end of what has historically been the three strongest months of inventory increase in the Coachella Valley. They felt that this continues to highlight the restrictive effects of the COVID pandemic and the new Omicron variant. They mentioned that other Southern California regions are experiencing the same pattern, with inventory levels again approaching historic lows.
Coachella Valley Regional Months of Sales Ratio: On January 1st, the months of sales ratio for the entire Coachella Valley was 0.6 months (down 64.7% from 1.7 months on January 1st, 2021). Market Watch noted that this months of sales ratio was the same as the historically low months of sales ratios registered last summer. They noted that while this low months of sales ratio bodes well for home sellers, it continues to make it difficult for home buyers to find homes that meet their wants and needs.
Months of Sales Ratios by Price Range: On January 1st, the months of sales ratio in every price range below one million dollars was equal to or less than 0.7months. For homes priced over one million dollars, the months of sales ratio was 1.3 months.
Months of Sales Ratios by City: On January 1st, the Coachella Valley city with the smallest months of sales ratio was Palm Desert at 0.4 months, followed by La Quinta and Bermuda Dunes at 0.5 months. Desert Hot Springs, Indian Wells and Thousand Palms were the only Coachella Valley cities with months of sale ratios of one month or greater.
Coachella Valley Regional Days in the Market: At the end of the year, the median number of days in the market for the entire Coachella Valley was 26 days (one day more than in November but 12 days less than in December 2020). As inventory remains low and home sales stay high, Market Watch stated that they felt the forces were in place to possibly push the days in the market number even lower (but they also believed the median days in the market number would stay near current levels for a while longer).
Days in the Market By City: In December, Desert Hot Springs had the lowest number of days in the market for detached homes at 20 days, followed by Indian Wells at 22 days and Rancho Mirage at 23 days. In December, Cathedral City had the lowest number of days in the market for attached homes at 9 days, followed by Palm Springs at 17 days and Desert Hot Springs at 22 days.
Coachella Valley Regional Sale Price Discount From List: The median value for sale price discount from list in December was again 0.0% (the same as it’s been for the last ten months). Market Watch explained that since so many homes are selling at list price, the median value of all sales continues to be exactly 0.0%. In December 2020, it was -0.6%.
Average Sale Price Discount From List By City: Market Watch noted that the average sale price discount from list is a better metric during periods when so many sales are occurring at list price or above. Bermuda Dunes continued to have the highest sales price premium for detached homes at 1.8%, followed by Desert Hot Springs and Indio at 1.6%. Only Palm Desert and Indian Wells had detached homes selling at a discount from list price. Rancho Mirage had the highest sales price premium for attached homes at 2%, followed by Palm Springs at 1.8% and Indian Wells at 1.2%. Only Bermuda Dunes had attached homes selling at a discount from list price.
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