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Local real estate market gurus, Market Watch LLC, take a look of the impact of COVID-19 on our local housing market. Market Watch noted that normal housing metrics (based on 3 and 12 month averages) are too long term to measure the effects of the Coronavirus pandemic and the California stay at home order on our local housing market. Market Watch has adopted a 28-day moving average to show short-term sales and price changes. Some highlights:
In the Coachella Valley, the typical escrow period averages 14 days, so moving the pending sales curve forward 14 days will show expected sales. Market Watch noted that single family residence average daily pending sales have been higher than current closed sales and at 20.9 units per day are only 4.6% below what they were one year ago. Market Watch commented that home sales in the Coachella Valley are strong compared to many other regions which may be due to the desire of some to get out of highly populated areas.
A look at average daily closed and pending sales for condominiums shows that average daily pending sales in the Coachella Valley for condominiums were 7.6 units per day (down 2.6% from 7.8 units per day one year ago). Market Watch commented that condominium sales were lagging until a month ago but have rapidly caught up over the last 30 days (an encouraging sign for the country club market, which is primarily condominiums).
Looking at average weekly pending sales for single-family residences by city, Market Watch noted large year-over-year single family residence home sales increases in Palm Springs (up 17.8%), La Quinta (up 20.5%), Rancho Mirage (up 32.6%) and Indian Wells (up 43.8%).
The daily average square foot price for both single family residences and condos in the Coachella Valley shows that prices of the two housing types remain strong in the face of the Coronavirus pandemic and all the difficulties it is bringing to the nation. The average square foot price of single family residences at $258 on July 1st is up 6.6% year-over-year and the average square foot price for condominiums at $213 is up 4% year-over-year.
Looking at the current average square foot price by city showed the highest increases year-over-year in single-family-residences in La Quinta (up 7.9%), Deert Hot Springs (up 8.2%), Cathedral City (up 8.9%), Palm Springs (up 9.7%) and Rancho Mirage (up 12.1%).
As of July 1st, the Coachella Valley’s daily housing inventory stood at 2,297 properties. Market Watch noted that our housing inventory levels historically decline during the summer months but usually not this severely. Market Watch stated that the current inventory level is 713 properties or 23.7% below one year ago. They felt that this should be encouraging news for current homeowners because the combination of low inventory, low interest rates and rising sales is typically very conducive to higher home prices.
Market Watch pointed out that average daily new listings were very seasonal, with both a natural fall off between Thanksgiving and the third week of January and another seasonal decline period that we are just entering. New listings have been averaging 23 new listings per day compared to 24 per day one year ago. The average daily number of cancelled and expired listings is down slightly from 17 units per day one year ago to 13 per day.
The average number of days in the market for single family residences is 75 (8 days less than one year ago). Days in the market for condominiums is 69 days (4 days less than on year ago).
Market Watch noted that after surging for two months, average selling price discounts for condominiums were rapidly falling back towards normal ranges. In June, the average selling price discount for condominiums was 3.2% (compared to 3.6% one year ago). The average selling price discount for single-family residences was 2.8% (compared to 3% one year ago). Market Watch felt that these average selling price discounts indicated that single family residence and condominium markets continued to be healthy in the face of the Coronavirus pandemic.
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