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Our local residential real estate market experts, Market Watch LLC, have just released their December 2022 Desert Housing Report. Some highlights:

COACHELLA VALLEY DETACHED HOME MEDIAN PRICE: The Coachella Valley detached home median price in December was $640,000 (up 3.7% from $617,000 in December 2021 but also down 9.9% from a high of $710,000 in July 2022). Market Watch commented that this decrease in the detached home median price was unexpected since detached home prices historically have begun to increase in December.

 

COACHELLA VALLEY ATTACHED HOME MEDIAN PRICE: The Coachella Valley attached home median price in December was $440,000 (up 3.5% from $425,000 in December 2021 but also down 10.4% from a high of $491,056 in May 2022). Market Watch commented that historically, seasonally driven price increases normally begin in December or January. They will be interested to see if this pattern returns in 2023.

12 MONTH CHANGE IN THE PRICE OF THE AVERAGE SIZE HOME BY CITY: Prices of the average size detached home increased year-over-year by double digits in Coachella (21.6%), Indio (15.2%), Rancho Mirage (13.0%), Desert Hot Springs (12.5%) and Cathedral City (10.7%). Market Watch pointed out that the prices of the average size detached home increased year-over-year by only 0.5% in Palm Desert and decreased year-over-year by 4% in Palm Springs.  For attached homes, prices of the average size attached home increased year-over-year in all Coachella Valley cities, ranging from a year-over-year increase of 30.2% year in Desert Hot Springs to an increase of 0.3% in La Quinta.

COACHELLA VALLEY MONTHLY HOME SALES (3-MONTH TRAILING AVERAGE): The 3-month average of Coachella Valley home sales in December was 444 home sales per month (down 49.4% from 878 home sales per month in December 2021, down 38.1% from pre-pandemic December average homes sales of 717 home sales per month and down 6.3% from 474 home sales per month in November). Market Watch noted that historically at this time of year, desert home sales begin to increase. They are interested to see if this seasonal pattern returns to increase home sales or at least stem the decline in home sales moving into 2023.

COACHELLA VALLEY MONTHLY HOME SALES (12-MONTH TRAILING AVERAGE): The 12-month trailing average of homes sales, which takes out seasonality, shows Coachella Valley home sales in December averaged 715 home sales per month (down 29.6% from an average of 1,016 home sales per month in December 2021). Market Watch noted that this is the 17th consecutive decline in average monthly Coachella Valley home sales and that 12-month trailing average monthly home sales are now below pre-pandemic averages. Market Watch expects that these long-term home sales numbers, which lag short term sales, will continue to decline for a while, even if monthly sales begin to increase.

COACHELLA VALLEY MONTHLY HOME SALES BY CITY: Average monthly home sales decreased year-over-year in every Coachella Valley city in December. The largest percentage home sales declines year-over-year were in the cities of La Quinta (58.2%), Indio (51.6%), Palm Desert (50.8%) and Cathedral City (49.3%). The smallest decreases year-over-year in average monthly home sales occurred in Desert Hot Springs (40.3%) and Indian Wells (38.5%).

COACHELLA VALLEY MONTHLY HOME SALES BY PRICE RANGE: Average monthly Coachella Valley home sales deceased year-over-year in every price range in December. The largest monthly home sales declines year-over-year continued to be in homes priced under $500,000. However, Market Watch noted that monthly home sales were considerably below year ago levels even in the higher price ranges. By way of example, average monthly sales of homes priced over one million dollars decreased year-over-year by 47.6% in December.

COACHELLA VALLEY TOTAL HOME INVENTORY: On January 1st, Coachella Valley home inventory was 1,911 homes (up 214.8% from 607 homes on January 1st, 2022, but also down 10.7% from 2,140 homes in November). Market Watch felt that some of the inventory gain over the last few months was seasonal and if this historical seasonal pattern were to continue, inventory might reach 2,500 homes by the end of February or March.

COACHELLA VALLEY REGIONAL MONTHS OF SALES RATIO: On January 1st, the Coachella Valley’s months of sales ratio was 2.7 months (up from 0.6 months on January 1st, 2022 but down slightly from 2.8 months in November). Market Watch explained that the months of sales ratio measures supply versus demand and even though home prices have been declining, a Coachella Valley months of sales ratio this low historically implies that the balance of supply and demand still favors the seller. Market Watch also stated that they believe some of the home price decline in the Coachella Valley hasn’t been from an abundance of supply over demand but rather from the transition from a premium market to a discount market. Homes which had sold for 2% over list price are now selling for 2% under list price. With no change in list price, this accounts for a 4% decline.

COACHELLA VALLEY MONTHS OF SALES RATIO BY PRICE RANGE: Coachella Valley months of sales ratios on January 1st continued to far exceed the months of sales ratios on January 1st, 2022 in every price range. However, the months of sales ratios on January 1st were still less than 3 months for homes priced under $900,000. Market Watch noted the normal pattern of months of sales ratios being higher for higher priced homes than lower priced homes.

COACHELLA VALLEY MONTHS OF SALES RATIO BY CITY: The months of sales ratios by city on January 1st ranged from a low of 2.2 months in Indian Wells (compared to 1 month one year ago) to 3.2 months in Thousand Palms (compared to 1.3 months one year ago). Market Watch noted that only three Coachella Valley cities had months of sales ratios of three months or over – Desert Hot Springs (3 months), La Quinta (3.1 months) and Thousand Palms (3.2 months).

COACHELLA VALLEY REGIONAL DAYS IN THE MARKET: The average selling time in the Coachella Valley continued to increase in December. At the end of December, the median number of days in the market throughout the Coachella Valley was 37 days (up 10 days from 27 days in December 2021). Market Watch predicted that the months of sales ratio will be back to 50 or 60 days relatively soon.

DAYS IN THE MARKET BY CITY FOR BOTH DETACHED AND ATTACHED HOMES: Market Watch noted that average selling times have been increasing but not as rapidly as expected. Palm Springs had the lowest median selling time for detached homes in December at 29 days (compared to 26 days one year ago), followed by Indian Wells at 34 days (compared to 22 days one year ago) and Bermuda Dunes at 34 days (compared to 38 days one year ago). Bermuda Dunes had the shortest median selling time for attached homes in December at 20 days (compared to 37 days one year ago), followed by Rancho Mirage at 25 days (compared to 24 days one year ago) and Desert Hot Springs at 27 days (compared to 22 days one year ago).

PERCENTAGE OF COACHELLA VALLEY HOMES SELLING OVER LIST PRICE:  In December, the percentage of homes selling over list price in the Coachella Valley continued its rapid decline to 15.2% (compared to 43.4% in December 2021). Market Watch predicted that the percentage of Coachella Valley homes selling over list price percent will soon return to the historic norm of around 10%.

AVERAGE HOME SALES PRICE DISCOUNT BY CITY FOR BOTH DETACHED AND ATTACHED HOMES: In December, there were price discounts for both detached or attached homes in every one of the Coachella Valley cities. For detached homes, the average discount from list price in December ranged from -0.9% in Coachella to -3.7% in Indian Wells. For attached homes, the average discount from list price in December ranged from -0.1% in Bermuda Dunes to -5.2% in Indio. Market Watch noted that this chart clearly shows the transition in the Coachella Valley from a premium to a discount market.

THE BRIGGS GROUP | COMPASS || Laurie Briggs – DRE3 01896117 | Tim Briggs – DRE# 01898254 | Compass – DRE# 01991628