Local real estate experts, Market Watch LLC, have just released their review of real estate activity in the Coachella Valley for the month of January. Some of their findings are as follows:
The median price for detached homes in the Coachella Valley in January was $380,000 (an increase of 12% over January 2017). This is also a significant increase over the December 2017 Coachella Valley detached home median price of $368,193.
The median price for attached homes in the Coachella Valley in January was $255,000 (an increase of 8.6% above January 2017). Again, this is a significant increase over the December 2017 Coachella Valley attached home median price of $245,000. Market Watch called this out as a positive sign for attached home market prices, which have been lagging the detached market for the last four years.
Eight Coachella Valley cities showed higher detached home median prices when compared with January 2017. The increases ranged from 21.6% in Desert Hot Springs, 13.6% in both Palm Desert and Palm Springs and 3.3% in Coachella. Only La Quinta had a lower median price than one year ago (with a decrease of 14.4%). Despite these gains, eight Coachella Valley cities still show detached home median prices below 2006 high median prices (ranging from a current detached home median price 18.5% below 2006 high median prices in Indio to 40.6% below 2006 high median prices in La Quinta. Only in Palm Springs has the detached home median price surpassed 2006 high prices (currently by 5.8%). In terms of attached homes, six cities showed higher median prices than a year ago (ranging from an increase of 0.3% in Cathedral City to 21.3% in Rancho Mirage). Nine Coachella Valley cities still show attached home median prices below 2006 high median prices (ranging from a current attached home median price 31.8% below 2006 high median prices in Indian Wells to 76.9% below 2006 high median prices in Desert Hot Springs).
In terms of detached and attached home sales, Market Watch notes that using the average of twelve month sales takes out all seasonality and allows comparing year-over-year sales at any month. January 2018 showed an increase of 14% in attached home sales year-over-year, a 12% increase in detached home sales year-over-year and a 12.7% increase in total home sales year-over-year.
In terms of home sales by city, seven cities (Bermuda Dunes, Desert Hot Springs, Indian Wells, La Quinta, Palm Desert, Palm Springs and Rancho Mirage) showed higher three month sales compared to a year ago, while four cities (Cathedral City, Coachella, Indio and Thousand Palms) had lower sales. Rancho Mirage leads the pack with an increase in total home sales of 39% year-over-year.
In terms of home sales by price range, Market Watch commented that as prices rise, sales of homes priced under $200K are lower than a year ago, due to a lack of inventory. Market Watch noted that over two thirds of all sales of homes priced under $200k are condo sales. Sales of homes priced between $200k and $300k were also less than a year ago. However, in all price brackets from $300k to $800k, sales were considerably higher than a year ago, e.g., sales of homes priced between $400k and $500k were up 30% and sales of homes priced between $600k and $700k were up by 52%.
Total Coachella Valley home inventory stood at 4,083 units on February 1st (an increase of 330 units from the inventory level at the end of December). This compares with inventory levels of 4,926 units on February 1st 2017 and 5,801 units on February 1st 2016. Market Watch pointed out that for the last five years every January has shown an increase in inventory (with an increase of almost 1,000 units in January 2016).
The February 1st months of supply ratio was 4.9 months versus 6.7 months on February 1st 2017 and 8.4 months on February 1st 2016. Market Watch commented that they do not expect to see a months of supply ratio over five months anytime during the coming year. They feel that this indicates that inventory will probably remain tight this year, making it a sellers’ market and putting upward pressure on prices.
With regard to months of supply by price range, inventory improvement compared to a year ago is found in all price brackets, especially between $400k and $800k. Of eleven Coachella Valley cities, only three (Rancho Mirage, La Quinta and Indian Wells) have months of supply ratios over six months. Four Coachella Valley cities (Cathedral City, Thousand Palms, Indio and Palm Springs) all have months of supply ratios below four months, which is a very healthy sign. Market Watch noted that even Palm Desert, which a few years ago had ratios consistently over six months, is now at 4.9 months.
The data in this report is produced for Coachella Valley real estate agents through the sponsorship and cooperation of the Palm Springs Regional Association of Realtors® (PSRAR) and the California Desert Association of Realtors® (CDAR).