Our local real estate market experts at Market Watch LLC have just released their December 2024 Desert Housing Report. Some highlights:
COACHELLA VALLEY SALES RECOVERY: In December, Coachella Valley home sales over the last four months averaged 32.9% below the pre-pandemic norm for the same time period. The pre-pandemic norm was calculated from home sales over the same time period in the years 2016, 2017, 2018 and 2019. Market Watch noted that home sales were approaching the lowest point on the recovery chart due to the fact that home sales haven’t picked up with expected lower mortgage rates.
COACHELLA VALLEY DECEMBER DETACHED HOME MEDIAN PRICE: The median price of a detached home in the Coachella Valley in December was $665,000 (up $8,750 or 1.3% from $656,250 in December 2023). Market Watch noted that the median price in the Coachella Valley usually hits its seasonal low between November and December and commented that the normal seasonal price support was starting in December.
COACHELLA VALLEY DECEMBER ATTACHED HOME MEDIAN PRICE: The median price of an attached home in the Coachella Valley in December was $474,500 (up $13,500 or 2.9% from $461,000 in December 2023). Market Watch commented that attached home median prices seem to be following the normal seasonal pattern and may have started their usual strong seasonal recovery.
COACHELLA VALLEY DECEMBER YEAR-OVER-YEAR CHANGE IN THE PRICE OF THE AVERAGE SIZE HOME BY CITY: Year-over-year price changes for detached homes in the Coachella Valley in December ranged from an increase of 20.9% for the 1,700 sq ft average size detached home in Coachella to a decrease of 10.7% for the 3,450 sq ft average size detached home in Indian Wells. Year-over-year price changes for attached homes in the Coachella Valley in December ranged from an increase of 14.9% for the 1,750 sq ft average size attached home in La Quinta to a decrease of 10.4% for the 1,050 sq ft average size attached home in Indio.
COACHELLA VALLEY DECEMBER MONTHLY HOME SALES (THREE MONTH AVERAGE): Average monthly home sales in the Coachella Valley in December were 493 home sales (up 6 home sales or 1.3% from 487 monthly home sales in December 2023). Market Watch stated that because of the seasonality in the Coachella Valley’s home sales data, it was difficult to determine where home sales stood on a historical basis. They noted that the earlier Sales Recovery Chart helps distinguish seasonal changes from real ones and showed that monthly home sales in December were below pre-pandemic normal by 32.9%.
COACHELLA VALLEY DECEMBER MONTHLY HOME SALES (TWELVE MONTH AVERAGE): The 12-month average of monthly home sales in the Coachella Valley in December was 607 home sales (roughly the same as the 606 average monthly home sales in December 2023). Market Watch noted that this long-term average, which takes out the seasonality from the Coachella Valley home sales data, has been hovering about 600 home sales per month now for almost two years. They noted that while the Federal Reserve Board has finally begun to lower short term rates, it hasn’t done much to lower fixed longer term mortgage rates. They felt that it will remain hard for home sales to recover until long-term interest rates decline.
COACHELLA VALLEY DECEMBER MONTHLY HOME SALES BY CITY: In most of the Coachella Valley cities, December home sales were comparable to year ago levels. Average monthly home sales in December decreased slightly year-over-year in three cities; Palm Springs, Rancho Mirage and Coachella. Palm Desert was the only Coachella Valley city with measurably higher year-over-year average monthly home sales (110 home sales, up 13 home sales or 13.4% from 97 home sales in December 2023).
COACHELLA VALLEY DECEMBER MONTHLY HOME SALES BY PRICE RANGE: In the Coachella Valley in December, monthly average home sales were comparable to year ago levels. Home sales-declined measurably in the $300K-$399K price range (at 46 home sales, down 15 home sales or 24.6% from 61 home sales in December 2023) and the $900K-$999K price range (at 13 home sales down 7 home sales or 35% from 20 home sales in December 2023).
COACHELLA VALLEY DECEMBER MONTHLY HOME SALES BY DOLLARS: Average monthly home sales in the Coachella Valley in December were $421 million (up $38 million or 9.9% from $383 million in December 2023).
COACHELLA VALLEY DECEMBER MONTHLY HOME SALES IN DOLLARS BY CITY: Home sales in dollars were comparable to December 2023 except in La Quinta (at $89 million, up $20 million or 20% from $69 million in December 2023) and Palm Desert (at $89 million, up $17 million or 23.6% from $72 million in December 2023).
COACHELLA VALLEY DECEMBER MONTHLY HOME SALES IN DOLLARS BY PRICE RANGE: Home sales-declined measurably in the $300K-$399K price range (at $16 million, down $6 million or 27.3% from $22 million in December 2023) and in the $900K-$999K price range (at $12 million, down $7 million or 36.8% from $19 million in December 2023). Monthly home sales increased measurably for homes priced over $2 million (at $105 million, up $35 million or 50% from $70 million in December 2023).
COACHELLA VALLEY JANUARY 1ST HOME SALE INVENTORY: On January 1st, Coachella Valley home sale inventory was 2,898 homes (up 759 homes or 35.5% from 2139 homes on January 1st 2024). Market Watch felt that the normal seasonal pattern suggested that inventory would continue to increase through April and that the current inventory level was close to what was normal for this time of year before the pandemic.
COACHELLA VALLEY JANUARY 1ST HOME SALE INVENTORY BY CITY: The highest January 1st inventory level was in Palm Springs (at 623 homes, up 124 homes or 24.9% from 499 homes on January 1st, 2024). The lowest inventory level was in Coachella (at 24 homes, down 11 homes or 31.4% from 35 homes on January 1st, 2024). Market Watch noted that this data could help agents identify what cities had homeowners with the greatest selling interest and how it compared to last year.
COACHELLA VALLEY JANUARY 1ST HOME SALE INVENTORY BY PRICE RANGE: The highest January 1st inventory level was for homes priced between $1 million and $1.99 million (at 519 homes, up 110 homes or 27% from 409 homes on January 1st, 2024). The lowest January 1st inventory level was for homes priced under $300K (at 135 homes, up 23 homes or 21% from 112 homes on January 1st, 2024). Market Watch noted that this data could help locate what price brackets might be responsible for the growth or contraction of inventory.
COACHELLA VALLEY JANUARY 1ST REGIONAL MONTHS OF SALES RATIO: On January 1st, the Coachella Valley’s months of sales ratio was 4.8 months (up 1.3 months or 37.1% from 3.5 months on January 1st, 2024). Market Watch stated that this fundamental ratio, which measures supply and demand, was back to pre-pandemic levels. Further, while inventory was back to normal pre-pandemic levels, home sales were lower than the pre-pandemic average which raises the months of sales ratio. They added that this the reason that the months of sales ratio is gradually moving in the direction of supply exceeding demand.
COACHELLA VALLEY JANUARY 1ST MONTHS OF SALES RATIO BY CITY: Market Watch noted consistent months of sale ratios of between 5.0 and 6.5 months in most of the nine Coachella Valley cities. The highest months of sales ratio on January 1st was in Indian Wells (at 8.9 months; the same as on January 1st, 2024). The lowest months of sale ratio on January 1st was in Coachella (at 3.1 months (up 0.5 months or 20% from 2.6 months on January 1st, 2024). Market Watch noted that since months of sales is really the supply-demand equation for housing, it showed that the housing market might begin to experience longer selling times, especially in the higher priced cities, but so far this hadn’t happened.
COACHELLA VALLEY JANUARY 1ST MONTHS OF SALES RATIO BY PRICE RANGE: The highest months of sales ratio was for homes priced between $900K and $999K at 11.4 months (up 6 months or 111% from 5.4 months on January 1st, 2024). The lowest months of sales ratio was for homes priced under $300K at 4.1 months (up slightly from 4.0 months on January 1st, 2024). Market Watch stated that because the months of sales ratio was really the supply-demand equation for housing, the large increases in months of sales ratios in all price ranges over last year showed the supply side of the market was increasing in all price brackets.
COACHELLA VALLEY DECEMBER REGIONAL DAYS IN THE MARKET: At the end of December, the median number of days in the market in the Coachella Valley declined for the fourth month to 41 days (up 5 days or 13.9% from 36 days at the end of December 2023). Market Watch felt this days in the market level was good for stable home prices, since homeowners would maintain listing prices if homes weren’t selling rapidly. They felt that the environment for declining home prices just wasn’t there, with days in the market decreasing over the last 4 months.
COACHELLA VALLEY DECEMBER DAYS IN THE MARKET BY CITY: Bermuda Dunes had the shortest selling time in the Coachella Valley at the end of December at 33 days (down from 42 days at the end of December 2023). This was followed by Palm Springs at 37 days (down from 43 days at the end of December 2023) and Indian Wells at 39 days (up from 36 days at the end of December 2023). The longest selling time in the Coachella Valley at the end of December was in Cathedral City at 49 days (up from 21 days at the end of December 2023).
COACHELLA VALLEY DECEMBER DAYS IN THE MARKET BY PRICE RANGE: The shortest selling time in the Coachella Valley at the end of December was for homes priced over $2 million at 35 days (up from 31 days at the end of December 2023). The longest selling time was for homes priced under $300K at 47 days (up from 28 days at the end of December 2023). Market Watch commented that selling times usually increased with higher priced homes. However, in the current Coachella Valley market, that was not the case, which was a positive sign for higher priced homes.
COACHELLA VALLEY DECEMBER AVERAGE PRICE DISCOUNT FROM LIST PRICE: At the end of December in the Coachella Valley, detached homes were selling at an average price discount from list price of 2.3% (up slightly from 2.2% at the end of December 2023). Attached homes were selling at an average price discount from list price of 2.7% (up slightly from 2.6% at the end of December 2023). Market Watch noted that these average price discount figures were similar to pre-covid levels. Market Watch pointed out that the average discount from list price for detached homes and attached homes was starting to separate slightly.
COACHELLA VALLEY DECEMBER AVERAGE SELLING DISCOUNT BY CITY: In December, Indio, Coachella and Cathedral City had the lowest average selling discount from list price at 1.5%. Palm Springs and Rancho Mirage had the highest average selling discount from list price at 3.2%.
COACHELLA VALLEY DECEMBER AVERAGE SELLING DISCOUNT BY PRICE RANGE: The lowest average selling discount from list price in December was for homes priced between $500K and $599K and those priced from $800K to $899K both at 1.7%. The highest average selling discount from list price was for homes priced over $2 million at 4.3%. Market Watch noted that as a rule, price discounts increase with higher priced homes, but in the Coachella Valley in December, the lowest average selling discounts occurred in the mid range price brackets.
COACHELLA VALLEY PERCENTAGE OF HOMES SELLING ABOVE LIST PRICE: In December, the percentage of homes selling over list price was 13.1% (down 2.1 percentage points from 15.2% in December 2023). Market Watch stated that they continued to expect the number of homes selling above list price to remain about one out of seven.
THE BRIGGS GROUP | COLDWELL BANKER | Laurie Briggs - DRE# 01896117 | Tim Briggs - DRE# 01898254 | Coldwell Banker Realty - DRE# 00616212