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Local real estate market experts Market Watch LLC have just released their February 2023 Desert Housing Report. Some highlights:

COACHELLA VALLEY DETACHED HOME MEDIAN PRICE: In February, the detached home median price in the Coachella Valley increased to $681,790 (up $31,790 or 4.9% from January and up 8.2% from $630,000 in February 2022). Market Watch’s analysis noted that this is the second monthly increase in detached home median price and was somewhat expected since home prices typically begin a seasonal rise this month. Further, they noted that the February detached home median price is now only 4% below the peak detached home median price of $710,000  reached in July 2022.

COACHELLA VALLEY ATTACHED HOME MEDIAN PRICE: In February, the attached home median price in the Coachella Valley was $434,000 (down 1.2% from $439,250 in February 2022 and down 11.6% from the peak attached home median price of $491,056 reached in May 2022). Market Watch’s analysis noted that seasonally driven attached home price increases normally begin in January or February. Market Watch further noted that so far, this year has been an exception (perhaps because 75% of the buyers and sellers of attached homes are remote owners from outside the region).

12 MONTH CHANGE IN THE PRICE OF THE AVERAGE SIZE HOME BY CITY: The price of the average size detached home increased year-over-year by double digits in Rancho Mirage (13.2%), Cathedral City (12.5%) and Desert Hot Springs (11.9%). The price of the average size detached home decreased year-over-year in Bermuda Dunes (-11.1%), Coachella (-0.9%) and Palm Desert (-0.5%).  For attached homes, the price of the average size attached home increased year-over-year by double digits in Desert Hot Springs (26.6%), Indian Wells (12.8%) and Rancho Mirage (10.5%). The price of the average size attached home only decreased year-over-year in Indio (-0.9%).

COACHELLA VALLEY MONTHLY HOME SALES -  3 MONTH TRAILING AVERAGE: In February, the three-month average of total home sales was 449 home sales per month (up from 413 home sales in January but down 37.4% from the pre-pandemic February average of roughly 717 homes sales per month). Market Watch’s analysis stated that at this time of year, desert home sales have traditionally increased moving into spring and they are watching to see if this pattern continues this year.

COACHELLA VALLEY MONTHLY HOME SALES – 12 MONTH TAILING AVERAGE: The 12-month trailing average of sales (which takes out seasonality from our Coachella Valley home sales data), shows total monthly home sales averaged 658 homes in February (down 33.2% from 985 homes in February 2022). Market Watch’s analysis noted that the decrease in monthly home sales in February was the 19th consecutive monthly decrease. Long term home sales in February were about 17% below pre-pandemic February averages. Market Watch expects this metric to continue to decline for a while even if monthly sales begin their historically traditional seasonal increase.

COACHELLA VALLEY HOME SALES BY CITY: Year-over-year home sales continued to decline in every Coachella Valley city. The largest percentage home sales declines were in Indio (down 58.3% year-over-year), followed by Cathedral City (down 57.4% year-over-year). Market Watch pointed out that the smallest percentage declines in total home sales occurred in Coachella and Indian Wells.

COACHELLA VALLEY HOME SALES BY PRICE RANGE: Home sales declined year-over-year in every price range. The largest home sales decline year-over-year was in homes priced between $400,000 and $700,000. Market Watch pointed out that the percentage decline in home sales was consistently high even in the highest price ranges, with sales of homes priced over $1,000,000 down 41.3% year-over-year and sales of homes priced between $900,000 and $1,000,000 down 53% year-over-year.

COACHELLA VALLEY HOME INVENTORY: On March 1st, the Coachella Valley’s inventory of homes for sale was 1,956 homes (down from 2025 homes on March 1st and up from 607 homes on March 1st, 2022). Market Watch commented that while some of this home sale inventory gain was seasonal it was less than in previous years. Market Watch attributes this to the number of new listings in February remaining near historic lows.

COACHELLA VALLEY MONTHS OF SALES RATIO: On March 1st, the Coachella Valley’s months of sales ratio was 3.0 months (down from 3.1 months in January but up from 0.6 months on March 1st, 2022). Market Watch stated that this fundamental ratio, which measures supply versus demand, is below its historic average for this time of year. They felt that this means that while home sales are down, there is still an acceptable balance between buyers and sellers which in turn should help keep price fluctuations within acceptable bounds.

COACHELLA VALLEY MONTHS OF SUPPLY BY PRICE RANGE: The months of supply ratios continued to far exceed year ago levels in every price range. Market Watch noted the normal pattern of higher months of sales ratios for higher priced homes, but also noted that the difference is less than the difference in past year. They felt that this meant that there should be price stability throughout the entire range of home prices.

COACHELLA VALLEY MONTHS OF SALES RATIOS BY CITY: Market Watch noted that the months of sales ratio was under 3 months in all of the Coachella Valley cities except La Quinta (3.2 months), Palm Springs (3.3 months) and Rancho Mirage (3.5 months). They also commented on how close the month of sales ratios were in every city.

COACHELLA VALLEY DAYS IN THE MARKET: At the end of February, the median number of days in the market for the entire Coachella Valley was 49 (up 8 days from 41 days in January and up 21 days from 28 days at the end of February 2022). Market Watch noted that as expected, the days in the market is almost back to the pre-pandemic average of 65 days.

COACHELLA VALLEY DAYS IN THE MARKET BY CITY: At the end of February, Palm Springs had the lowest median selling time for detached homes at 35 days (up from 21 days year-over-year), followed by Cathedral City at 38 days (up from 28 days year-over-year). The longest median selling time for detached homes was in Indio at 61 days (up from 29 days year-over-year). For attached homes, at the end of February, Desert Hot Springs had the lowest median selling time at 24 days (down from 36 days year-over-year) followed by Palm Springs at 34 days (up from 15 days year-over-year). The longest median selling time for attached homes was in Indio at 68 days (up from 28 days year-over-year).

PERCENTAGE OF HOMES SELLING OVER LIST PRICE IN THE COACHELLA VALLEY: In February, only 12.8% of home sales were over list price (down from 44.4% in February 2022). Market Watch noted that this percentage was almost back to the historic norm of around 10%.

COACHELLA VALLEY AVERAGE PRICE DISCOUNTS BY CITY: In February, in Coachella detached homes sold on average for 0.1% over list price (down from 1.3% in February 2022). In every other Coachella Valley city, in February homes sold at a discount from list price, ranging from -2.2% in Cathedral City to -4.3% in Indian Wells. In February attached homes sold at a discount from list price in every Coachella Valley city, ranging from -2.0% in Bermuda Dunes to -5.3% in Indio.

The Briggs Group / Coldwell Banker Realty | Laurie Briggs DRE# 01896117 | Tim Briggs DRE# 01898254 | Coldwell Banker Realty DRE# 00616212