Our local real estate market experts, Market Watch LLC, have just released their July 2024 Desert Housing Report. Some highlights are as noted below:

JULY COACHELLA VALLEY SALES RECOVERY: This data shows where current Coachella Valley home sales were in July, expressed as a percentage of historic norm July home sales. The historic norms were calculated from Coachella Valley home sales in the years 2016 through 2019. Coachella Valley home sales in July were 27.2% below historic norms (up from home sales that were 34.8% below historic norms in July 2023). Market Watch pointed out that Coachella Valley home sales as a percentage of historic norms have been declining over the last four months. They are hopeful that the Federal Reserve will drop interest rates soon, which would stimulate buyers.

JULY COACHELLA VALLEY DETACHED HOME MEDIAN PRICE: After reaching an all-time high of $724,523 in April of this year, the median price of a detached home in the Coachella Valley in July was $669,000 (up $4,000 or 0.6% from $665,000 in July 2023). Market Watch commented that it appears that Coachella Valley home prices are following the typical historic pattern of peaking in May or June then easing through the summer and early fall. With both home sales inventory and home sales declining, Market Watch felt that housing supply and demand would remain relatively in balance.

JULY COACHELLA VALLEY ATTACHED HOME MEDIAN PRICE: In July, the attached home median price in the Coachella Valley was $460,000 (up $10,000 or 2.2% from $450,000 in July 2023). Market Watch pointed out that the seasonal price variation for attached homes was much larger than for detached homes. They observed that attached home prices seemed to be following the normal seasonal pattern which should result in attached home prices remaining stable for the rest of the year.

JULY COACHELLA VALLEY TWELVE MONTH PRICE CHANGE FOR THE AVERAGE SIZE HOME BY CITY: In July, year-over-year price changes for detached homes ranged from an increase of 27.8% for the average size 1,700 sq ft detached home in Coachella to a decrease of 10% for the average size 2,175 sq ft detached home in Palm Springs. In July, year-over-year price changes were negative for average size detached homes in Indio, Cathedral City, Bermuda Dunes and Palm Springs. In July, year-over-year price changes for attached homes ranged from an increase of 18% for the average size 1,450 sq ft attached home in Bermuda Dunes to a decrease of 5.4% for the average size 1,250 sq ft attached home in Palm Springs. In July, year-over-year price changes were negative for average size attached homes in Palm Springs and Cathedral City.

JULY COACHELLA VALLEY MONTHLY HOME SALES – THREE MONTH AVERAGE: In July, the three-month average of Coachella Valley home sales was 642 home sales per month (down 70 home sales or 9.8% from an average of 712 home sales per month in July 2023). Because of the seasonality in Coachella Valley home sales data, Market Watch noted that it was difficult to determine where home sales stood on a historical basis. However, the Sales Recovery data shows that in July Coachella Valley home sales were 27.2% lower than pre-pandemic July historic norms.

JULY COACHELLA VALLEY MONTHLY HOME SALES - TWELVE MONTH AVERAGE: In July, the twelve-month average of Coachella Valley home sales was 608 home sales per month (roughly the same as in July 2023). Market Watch noted that for 15 months, long-term home sales have been hovering between 600 and 620 home sales per month. They went on to comment that although the inflation rate had declined, the Federal Reserve Board was reluctant to lower rates. They felt that the recent increase in unemployment might result in lower rates, which in turn would stimulate home sales.

JULY COACHELLA VALLEY HOMES SALES BY CITY: In July, home sales were lower year-over-year in all Coachella Valley cities other than Desert Hot Springs (with an average of 47 monthly home sales in both July and July 2023) and Bermuda Dunes (with an average of 12 home sales compared to an average of 9 home sales in July 2023). In July, Palm Desert had the highest average number of home sales at 141 (down 9% from 155 home sales in July 2023), followed by Palm Springs at an average of 120 home sales (down 17.2% from 145 home sales in July 2023).

JULY COACHELLA VALLEY HOME SALES BY PRICE RANGE: The largest part of the overall sales decline appears to be sales of homes priced between $400K to $599K. For homes priced between $400K and $499K, home sales decreased by 22.9% from 131 home sales per month in July 2023 to 101 home sales in July 2024. For homes priced between $500K and $599K, home sales decreased by 9% from 111 home sales per month in July 2023 to 101 home sales in July 2024. In most other price ranges, Market Watch noted that home sales were comparable sales to last year.

JULY COACHELLA VALLEY HOME SALES IN DOLLARS (ALL HOMES): Home sales in dollars in July were $519 million (down 9.6% from home sales of $574 million in July 2023). Market Watch noted that not surprisingly, home sales in dollars showed the same seasonal pattern as home sales by units.

JULY COACHELLA VALLEY HOME SALES IN DOLLARS BY CITY: In July in the Coachella Valley, the largest decrease in homes sales by dollar was in La Quinta and Palm Springs. Home sales by dollar in La Quinta decreased 20.7% from $135 million in July 2023 to $107 million in July 2024. Home sales by dollar in Palm Springs decreased 20.8% from $120 million in July 2023 to $95 million in July 2024. Market Watch felt that July home sales in dollars were comparable July 2023 in every other Coachella Valley city.

JULY COACHELLA VALLEY HOME SALES IN DOLLARS BY PRICE RANGE: July sales in the Coachella Valley for homes priced between $1 million and $1.999 million were $135 million (the same as in July 2023). July sales in the Coachella Valley for homes priced at or over $2 million were $102 million (down 16.7% from $122 million in July 2023). Market Watch noted that home sales in dollars in these two brackets now account for 50% of all home sales in dollars in the Coachella Valley.

AUGUST 1ST COACHELLA VALLEY HOME SALES INVENTORY: On August 1st, Coachella Valley home sales inventory was 2,266 homes (down 199 homes or 8.1% from 2,465 homes in June but up 496 homes or 28% from 1,770 homes on August 1st 2023). Market Watch noted that the normal seasonal pattern now suggested that inventory would continue to decline for another month, then begin the strong seasonal increase that usually starts in September. They further noted that while inventory has gradually improved, current numbers continue to be about 1,000 units below what was normal for this time of the year before the pandemic.

AUGUST 1ST COACHELLA VALLEY HOME SALES INVENTORY BY CITY: The highest home sales inventory was in Palm Springs with 548 homes for sale on August 1st (up 43% from 383 homes for sale on August 1st 2023). The lowest home sales inventory was in Coachella with 31 homes for sale on August 1st (up 6.9% from 29 homes for sale on August 1st, 2023). 

AUGUST 1ST COACHELLA VALLEY HOME SALES INVENTORY BY PRICE RANGE: The highest level of home sales inventory in July in the Coachella Valley was for homes priced between $1 million and $1.000 million were there were 396 homes for sale on August 1st (up 22.6% from 323 homes for sale on August 1st, 2023). The lowest inventory level in the Coachella Valley in July was for homes priced between $900K and $999K with 114 homes for sale on August 1s (up 62.8% from 70 homes for sale on August 1st, 2023). Market Watch noted that this data could be helpful in locating homes sales in those price ranges that might be responsible for the growth or contraction of overall home sales inventory.

AUGUST 1ST COACHELLA VALLEY OVERALL MONTHS OF SALES RATIO: On August 1st , the Coachella Valley’s overall or regional months of sales ratio was 3.7 months (up from 2.7 months on August 1st, 2023). Market Watch noted that this fundamental ratio, which measures supply and demand, is now back to pre-pandemic levels. They further noted that even though inventory is still relatively low, the low sales numbers have kept supply and demand in balance (a major reason why home prices have remained stable over the last twelve months). Market Watch felt that seasonal factors should lower this ratio even more over the next month or two.

AUGUST 1ST COACHELLA VALLEY MONTHS OF SALES RATIO BY CITY: Market Watch pointed out that months of sale ratios in July were mainly consistent between 3.0 and 4.0 months in the nine Coachella Valley cities surveyed. The highest months of sale ratio in July was in Palm Springs at 4.6 months (up from 2.6 months on August 1st, 2023). The lowest months of sale ratio in July was in Palm Desert at 3 months (up from 2 months on August 1st, 2023). Market Watch stated that since months of sales is really the supply-demand equation for housing, the July data showed that the housing market remained balanced.

AUGUST 1ST COACHELLA VALLEY MONTHS OF SALES RATIO BY PRICE RANGE: Market Watch felt that the year-over-year increases in months of sales ratios were similar across all price ranges. On August 1st, the highest months of sales ratio in the Coachella Valley was for homes priced over $2 million at 5.6 months (up from 4.3 months on August 1st, 2023). The lowest months of sales ratio was for homes priced from $300K to $399K and from $400K to $499K at 2.7 months (up from 1.5 months for the $300K-$399K price range on August 1st, 2023 and 1.8 months for homes priced from $400K to $499K on August 1st, 2023). Again, Market Watch felt that since months of sales is really the supply-demand equation for housing, these increases showed the supply side of the market is increasing in equal amounts in all price brackets.

JULY COACHELLA VALLEY OVERALL DAYS IN THE MARKET: Market Watch noted that the median selling time in the Coachella Valley had been stable for the last three months at around 47 days (compared to 39 days in July 2023). Market Watch continued to believe that the median selling time in the Coachella Valley would remain around current levels continuing into the fall.

JULY COACHELLA VALLEY DAYS IN THE MARKET BY CITY: In July, Coachella continued to have the lowest average selling time at 18 days (down from 32 days in July 2023), followed by Cathedral City at 37 days (up from 17 days in July 2023) and Desert Hot Springs at 39 days (up from 36 days in July 2023). In July, Indian Wells had the highest average selling time at 57 days (up from 38 days in July 2023).

JULY COACHELLA VALLEY DAYS IN THE MARKET BY PRICE RANGE: In July, the lowest average selling time was for homes priced between $400K and $499K at 41 days (up from 38 days in July 2023). In July, the highest average selling time was for homes priced at or above $2 million at 53 days (up from 37 days in July 2023).

JULY COACHELLA VALLEY OVERALL SALES PRICE PREMIUM/DISCOUNT: At the end of July in the Coachella Valley, detached homes were selling at an average discount of 2.0% (the same as last month but up slightly from 1.9% at the end of July 2023). At the end of July, attached homes were selling at an average discount of 2.7% (up from 2.2% at the end of July 2023). Market Watch noted that sale price premiums/discounts were now back in line with pre-covid levels.

JULY COACHELLA VALLEY PRICE PREMIUM/DISCOUNT BY CITY: In July, Coachella was the only Coachella Valley city with homes selling at a premium (with an average premium of 0.4%). Bermuda Dunes had the largest average discount of 4.2%.

JULY COACHELLA VALLEY PRICE PREMIUM/DISCOUNT BY PRICE RANGE: In July in the Coachella Valley, the largest average price discount at 4.7% was for homes priced at or above $2 million (up from 3.3% in July 2023). The lowest average price discount at 1.3% was for homes priced between $400K and $499K. Market Watch noted that as a rule, price discounts increase with higher priced homes.

JULY COACHELLA VALLEY PERCENTAGE OF HOMES SELLING ABOVE LIST PRICE: In July in the Coachella Valley, the percentage of homes selling over list price was 14.8% (down from 17.7% in July 2023). Market Watch continued to expect the number of homes selling above list price to remain about one out of seven or 14.3%.

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