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The local real estate market experts at Market Watch LLC have just released their January Desert Housing Report. Here are some highlights:
The Coachella Valley detached home median price was $431,000 at the end of January (up 10.5% from $390,000 at the end of January 2019). Market Watch’s analysis pointed out that the median price for detached homes started increasing early in the year, with the increase in median price beginning to accelerate.
The Coachella Valley attached home median price was $280,000 at the end of January (up 1.8% from $275,000 at the end of January 2019). Market Watch’s analysis expressed a concern that median prices this year do not show the same seasonal strength they've shown at this time in the preceding three years.
Detached home median prices continued to rise year-over-year in seven of the nine Coachella Valley cities (with decreases in the detached home median price of 1.5% in La Quinta and 14.0% in Indian Wells). Detached home median prices in Coachella, Palm Desert, and Cathedral City showed gains of 8.9%, 8.3% and 8.2% respectively. The detached home median price in Palm Springs was 9.6% above the previous record high in 2006. The detached home median prices in all other Coachella Valley cities remained below the record highs in 2006 (by as much as 31.5% in Indian Wells and 29.7% in Rancho Mirage). Attached home median prices increased year-over-year in Cathedral City (9.9%), Palm Desert (5.5%), La Quinta (3.0%) and Indian Wells (1.4%). Attached home median prices decreased year-over-year in Palm Springs (-1.9%), Rancho Mirage (-7.9%), Indio (-12.7%) and Desert Hot Springs (-61.3%). The attached home median price in all of the Coachella Valley cities remained below the record highs in 2006 (by as much as 78.5% in Desert Hot Springs and 35.2% in La Quinta).
In looking at total, detached and attached home sales (3 month moving average), total home sales averaged 716 units per month (an increase of over 12% from total home sales of 637 units per month at the same time last year). Sales of detached homes were up 19.7% year-over-year while sales of attached homes were down -1.9% year-over-year.
In looking at home sales by city, Market Watch’s analysis noted that home sales increased significantly in Rancho Mirage (+37%), Cathedral City (+26%), Desert Hot Springs (+25%), La Quinta (+16%) and Palm Springs (+13%).
In looking at home sales by price ranges, Market Watch’s analysis noted that there was little change in the number of homes sold for homes priced under $300,000. The largest increase in home sales was for homes priced between $300,000 and $400,000 (with sales increasing by 27% from 139 homes per month last year to 176 units per month this year). Market Watch analysis also noted sales increases in almost all price ranges over $500,000. Sales in the $500,000-$600,000 price range increased by 44% from 48 units per month in January last year to 69 units per month in January of this year. For homes priced over $1 million, sales increased by 15.4% from 39 units per month in January last year to 45 units per month in January of this year.
Housing inventory in the Coachella Valley continued to decline and stood at 3,202 units on February 1st (a decrease of almost 16% from 3,811 units on February 1st, 2019). Market Watch’s analysis noted that the current February 1st inventory of 3,202 units is the lowest February 1st inventory in their database.
The months of sales ratio (which is the ratio of inventory divided by the sales rate and provides a measure how long it would take to sell the entire housing inventory at the current sales rate) on February 1st was 3.9 months (compared with 4.8 months on February 1st of last year). Market Watch’s analysis noted that this is the lowest February 1st months of sales ratio in their database. The median value of days in the market stood at 51 days in January (compared with 66 days in January 2019).
In looking at the months of sales ratio in different price ranges, Market Watch’s analysis noted lower months of sales compared to a year ago in almost every price bracket. They also noted that the strengthening market conditions indicated by lower months of sales throughout the region is found across the entire price spectrum. In the case of homes priced over $1 million, the months of sales ratio dropped by 27.5% from 13.8 months in last year to 10 months this year.
In looking at the months of sales ratio by city, Market Watch noted that months of supply ratios decreased in every city except Bermuda Dunes and Indian Wells. The months of sales ratio decreased year-over-year by 19.4% in Coachella (from 3.1 months last year to 2.5 months this year) and by 17.1% in Palm Springs (from 3.5 months last year to 2.9 months this year).
The January sale price discount from list was -1.9% (0.2 of a percent less than a year ago). Market Watch’s analysis noted that this is the lowest sale price discount from list in five years and implies the average home in the region offered at $400,000 sold for $392,400.
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