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Local real estate experts Market Watch LLC have just released their February 2024 Desert Housing Report. Some of the highlights:

COACHELLA VALLEY HOME SALES RECOVERY: Coachella Valley home sales in February were 24.3% below normal (calculated from the pre-pandemic years of 2016 through 2019). Market Watch noted that this was an improvement from January (when home sales were running at 28.6% below normal). Market Watch expressed hope that home sales would return to normal levels by the end of the year.

COACHELLA VALLEY FEBRUARY DETACHED HOME MEDIAN PRICE: The median price of a detached home in the Coachella Valley in February was $680,500 (up $20,500 or 3.1% from a median detached home price of $660,000 in January and up $8,050 or 1.2% from a median price of $672,450 in February 2023). Market Watch expressed their belief that the seasonal pattern of home prices in the Coachella Valley beginning in January or February had started this year. They also stated that with inventory rising and sales remaining low, supply and demand continued to slowly favor buyers.

COACHELLA VALLEY FEBRUARY ATTACHED HOME MEDIAN PRICE: The median price of an attached home in the Coachella Valley in February was $488,250 (up 12.7% from an attached home median price of $433,000 in February 2023). Market Watch’s take away was that attached home prices seemed to be following their normal seasonal pattern, so they expected attached home  prices to continue to increase for the next three or four months.

TWELVE MONTH CHANGE IN THE PRICE OF THE AVERAGE SIZE HOME BY CITY: Year-over-year changes in home prices for average size detached homes in each Coachella Valley city in February ranged from a 16.7% increase year-over-year in Indian Wells to a decrease of 7.6% in Cathedral City. Four cities (Indio, Indian Wells, Cathedral City and Palm Springs) had increases in the price of average size attached homes year-over-year. Year-over-year changes in home prices for average size attached homes in each Coachella Valley city in February ranged from a 5.3% increase year-over-year in Indio to a decrease of 8% in Desert Hot Springs.

COACHELLA VALLEY MONTHLY HOME SALES (3 MONTH TRAILING AVERAGE): In February, Coachella Valley home sales (518 home sales per month) were up 9.3% year-over-year from 474 homes sales per month in February 2023. Market Watch noted that their sales recovery information shows that while home sales were improving, they were still running 24.3% below historic norms in February.

COACHELLA VALLEY FEBRUARY MONTHLY HOME SALES (12 MONTH TRAILING AVERAGE): The 12-month average of home sales, which removes seasonality from the home sales data, showed total Coachella Valley home sales were averaging 620 units a month (down 8.3% from 676 home sales in February 2023). Market Watch stated that February home sales were a disappointment. They continue to believe that home sales will recover only when mortgage rates come down to 5.5% to 6%. Further they added that recent declines in inflation gave them hope this might have already started.

COACHELLA VALLEY FEBRUARY HOME SALES BY CITY: For another month, every city except Cathedral City, Desert Hot Springs and Indian Wells had higher three-month home sales compared to last year. The cities with the largest increase in home sales (percentage-wise) year-over-year were Coachella and Rancho Mirage with home sales up 38%, followed by La Quinta with home sales up 30%.

COACHELLA VALLEY FEBRUARY HOME SALES BY PRICE RANGE: Coachella Valley home sales in February were generally about the same as one year ago in most price ranges. The largest home sales increases were in homes priced from $500k to $600k (with home sales up 37.1% year-over-year) and in homes priced from $600k to $700k (with home sales up 25% year-over-year). Sales of homes priced over one million dollars were higher (up 12.3% year-over-year), primarily because more homes now fall in that price range. Market Watch felt that the home sales data by price range was positive since it showed the Coachella Valley housing market was well balanced in all price ranges.

COACHELLA VALLEY MARCH 1ST TOTAL HOME INVENTORY: On March 1st, the Coachella Valley total home inventory was 2,416 homes (the highest level in almost four years and up 24% from 1,956 homes on March 1st 2023). Market Watch pointed out that while inventory has improved, this level is still about 1,000 homes under what was normal in March before the pandemic. They further stated that some of this increase in inventory was seasonal, but the same seasonal pattern now suggests the current level may be near the high for 2024, since the Coachella Valley home inventory usually declines between March and September.

COACHELLA VALLEY MARCH 1ST REGIONAL MONTHS OF SALES RATIO: On March 1st, the Coachella Valley’s months of sales ratio was 3.9 months (one month higher than on March 1st, 2023). Market Watch explained that this fundamental ratio, which measures supply and demand, is now back to pre-pandemic levels. They felt that even though home inventory was still relatively low, the low level of home sales kept supply and demand in balance. Because of this they felt that there was no overbalancing force pushing home prices either higher or lower. This is one major reason why Coachella Valley home prices haven't changed much over the last year.

COACHELLA VALLEY MARCH 1ST MONTHS OF SALES RATIOS BY PRICE RANGE: As is the case with the entire Coachella Valley, the months of sale rations in most price brackets were slightly above year ago levels, except in higher priced homes where months of sales ratios are considerably higher. Homes priced over $800,000 now have months of sales ratios between 5 and 6 months.

COACHELLA VALLEY MARCH 1ST MONTHS OF SALES RATIOS BY CITY: As was the case with months of sales ratios by price range, every Coachella Valley city had a months of sales ratio measurably higher than one year ago. Every Coachella Valley city, other than Coachella, had a months of sales ratio over three months. Market Watch noted that a months of sales ratio of three to four months is considered normal. They further noted that the current distribution of months of supply ratios indicates that supply and demand were pretty much balanced throughout the Coachella Valley.

COACHELLA VALLEY FEBRUARY REGIONAL DAYS IN THE MARKET: Market Watch stated that the median selling time in the Coachella Valley region remained relatively stable in February. At the end of February, the median number of days in the market in the Coachella Valley was 44 days (slightly less than at the end of February 2023 when the median number of days in the market was 48 days). Market Watch stated that they continue to believe the median selling time will remain around current levels moving further into the year.

COACHELLA VALLEY FEBRUARY DAYS IN THE MARKET BY CITY: In February, Coachella continued to have the lowest median selling time for detached homes at 30 days, followed by Desert Hot Springs at 36 days and Indian Wells at 39 days. In the case of attached homes, in February Indio had the shortest average selling time at 24 days, followed by La Quinta at 33 days and Desert Hot Springs at 35 days.

COACHELLA VALLEY PERCENTAGE OF HOMES SELLING ABOVE LIST PRICE IN FEBRUARY: In February, the percentage of homes selling over list price was 13.5% (up from 12.3% in February 2023). Market Watch said that they continue to expect the number of homes selling above list to remain around one out of seven.

COACHELLA VALLEY FEBRUARY AVERAGE SELLING PRICE DISCOUNTS BY CITY: In every Coachella Valley city in February, detached homes were selling at an average discount, ranging from 0.4% in Coachella to 4.4% in Bermuda Dunes. Discounts for attached homes in February, ranged from 1.9% in Cathedral City to 6.1% in Bermuda Dunes.

THE BRIGGS GROUP | COLDWELL BANKER | Laurie Briggs - DRE# 01896117 | Tim Briggs – DRE# 01898254 | Coldwell Banker Realty – DRE# 00616212