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Local real estate experts, Market Watch LLC, have just released their February 2019 Desert Housing Report. Some of the highlights include:
The Coachella Valley detached home median price in February was $389,000 (vs. $390,000 in February 2018). Market Watch’s analysts noted that the slowdown in price gains is due to a decline in sales.
The Coachella Valley attached home median price in February was $280,000 (8.1% above the attached home median price of $259,500 in February 2018). Market Watch’s analysts commented that the attached home market appears to be gaining strength.
The 12 month change in detached home median prices by city ranged from a year-over-year increase of 23.6% in Rancho Mirage to a year-over-year decrease of 4.8% in Palm Desert. The 12 month change in attached home median prices ranged from a year-over-year increase of 31.2% in Indio to a year-over-year increase of 3.8% in Palm Desert.
The three-month average of home sales for both detached and attached homes show year-over-year declines. Detached home sales of 413 units per month are 15.7% below last year. Attached home sales of 219 units per month are 18% below last year.
Home sales by city revealed that every city in the Coachella Valley showed a decline in 3-month average sales except for Coachella and Thousand Palms. Rancho Mirage’s home sales were down 29.7% year over year, Indian Wells’ home sales were down 22.2%, Cathedral City’s sales were down 22%, Palm Desert ‘s home sales were down 17%, Indio’s home sales were down 14.4% and Palm Springs’ home sales were down 8.8%. Market Watch’s analysts speculated that the 20% drop stock market in December and January might have contributed to the decline in home sales. They also speculated that home sales might recover in light of the stock market rally in February.
Home sales by price range showed a decline in sales for homes priced under $400,000 and between $500,000 to $800,000. In the higher end market, home sales for homes priced over $900,000 were comparable to sales last year.
Coachella Valley housing inventory on March 1st was 3,909 units (almost the same as the 3,901 units of housing inventory on March 1st, 2019). Market Watch’s analysts noted that these are the lowest March 1st inventory numbers in the last 5 years. They further speculated that buying and selling are still relatively balanced.
The month of sales ratio on March 1st was 4.8 months, which compares to 4.7 months on March 1st 2018. Market Watch stated that these are the lowest ratios in the last 5 years and confirm that even though sales have declined housing inventory remains well contained. The median number of days on the market in February was 66 days, the same as in February 2018.
Months of Sales by Price Range revealed comparable ratios to last year in all price brackets under $700,000. For homes priced over $800,000, there were lower months of sales ratios than last year.
Months of Supply by City showed lower month of sales ratios (but still comparable with last year’s numbers) in Coachella, Palm Springs, Bermuda Dunes and La Quinta. Other than Thousand Palms, all other cities in the Coachella Valley showed higher month of sales ratios than last year.