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Our local real estate market experts, Market Watch LLC, have just released their June 2022 Desert Housing Report. Some highlights:

COACHELLA VALLEY DETACHED HOME MEDIAN PRICE:  The median price of a detached home in the Coachella Valley in June was $700,000 (the same as last month but up 16.9% from the detached home median price of $599,000 in June 2021). Market Watch noted that we are now in what has historically been a seasonal period when home price increases slow or home prices even decline somewhat. They expect that pattern to continue this year. They also noted that the forces that have been driving home prices higher, i.e., high sales and low inventory, are starting to abate due to rising mortgage rates and higher home prices.

COACHELLA VALLEY ATTACHED HOME MEDIAN PRICE:  The median price of an attached home in the Coachella Valley in June was $490,000 (down $1,056 from last month but up 34.2% from the attached home median price of $365,000 in June 2021). Market Watch noted that seasonal factors also point to downward attached home price pressure entering the summer. They also noted that historically, it has not been uncommon to see the attached home median price decline by approximately 10% between July and October.

JUNE 12 MONTH CHANGE IN THE PRICE OF THE AVERAGE SIZE HOME IN THE COACHELLA VALLEY BY CITY:  Year-over-year increases in the median price of the average size detached home in the Coachella Valley in June ranged from 49.3% in Indian Wells (for the 3,450 sq ft average size detached home in Indian Wells) to 17.8% in Coachella (for the 1,700 sq ft average size detached home in Coachella). Year-over-year increases in the median price of the average size attached home in the Coachella Valley in June ranged from 54.1% in Bermuda Dunes (for the 1,450 sq ft average size attached home in Bermuda Dunes) to 29.8% in Indian Wells (for the 1,950 sq ft average size attached home in Indian Wells). In addition, year-over-year increases in the median price of the average size attached home in June were above 40% in Desert Hot Springs, Indio and Rancho Mirage.

COACHELLA VALLEY JUNE MONTHLY HOME SALES – 3 MONTH TRAILING AVERAGE:  Total Coachella Valley monthly home sales averaged 923 homes in June (23% less than the average monthly home sales of 1,198 homes in June 2021 and 5.8% less than average monthly home sales of 980 homes in June 2019 before the pandemic). Market Watch noted that our market is now entering what has historically been a weak summer home sales seasonal period and monthly home sales could drop to average levels of between 650 and 700 home sales per month by late fall.

COACHELLA VALLEY JUNE MONTHLY HOME SALES – 12 MONTH TRAILING AVERAGE:  The 12-month monthly average of total home sales (which removes the seasonality from this metric) in the Coachella Valley in June was 893 homes per month (21% less than the average monthly total homes sales of 1,131 homes in June 2021 but still roughly 12% above the pre-pandemic average of about 800 home sales per month in June). Market Watch expects the long term 12-month average of total home sales to continue to decline over the next six months as a result of the current decline in the shorter term 3-month average of total home sales.

COACHELLA VALLEY JUNE HOME SALES BY CITY:  Home sales declined year-over-year in every Coachella Valley city surveyed in June, with the exception of Coachella and Desert Hot Springs. The largest decline in home sales in June occurred in La Quinta (with home sales down 43.6% year-over-year) followed by Rancho Mirage (with home sales down 25.2% year-over-year), Indian Wells (with home sales down 25% year-over-year) and Palm Desert (with home sales down 23.9% year-over-year). Home sales in Desert Hot Springs increased by 14% year-over-year. Market Watch felt that this was probably due to homes in Desert Hot Springs selling at lower prices than in other Coachella Valley cities.

COACHELLA VALLEY JUNE HOME SALES BY PRICE RANGE:  Almost all of the 23% year-over-year decrease in Coachella Valley home sales in June occurred in the sales of homes priced under $500,000. Market Watch noted that there were almost no sales of condominiums or single-family residences priced under $200,000. Sales of homes in all price ranges over $600,000 (including homes priced over one million dollars) increased slightly year-over-year.

COACHELLA VALLEY JULY 1ST TOTAL HOUSING INVENTORY:  On July 1st, the Coachella Valley housing inventory was 1,531 homes (up 877 homes or 134% from an inventory of 654 homes on July 1st, 2021). Market Watch noted that housing inventory in the Coachella Valley has surged over the last 3 month, at a time when inventory has historically contracted. Market Watch stated that it will be important to watch inventory levels as we approach September, which is when inventory levels historically have begun to increase. If this pattern were to continue this year, inventory could possibly be renormalized and reach 3,000 homes by late fall.

COACHELLA VALLEY JULY 1ST MONTHS OF SALES RATIO: On July 1st, the months of sales ratio for the Coachella Valley was 1.7 months (up 1.1 months or 183% year-over-year). Market Watch noted that while this is the highest months of sales ratio in over 19 months, it is also still below the 3 to 3.5 months of sales ratio that has historically been normal for late summer. They further noted that seasonal factors should keep the months of sales ratio from rising any higher until next winter. However, they added that these are abnormal times and that might not happen this year. Since the months of sales ratio represents the overall balance of supply and demand, it is an important metric to track. 

COACHELLA VALLEY JULY 1ST MONTHS OF SALES RATIOS BY PRICE RANGE:  The months of sales ratio on July 1st was significantly higher year-over-year in every price bracket. For homes priced over $500,000, the months of sales ratios for each price range measured were at or above 1.8 months, with the highest months of sales ratio at 2.6 months for homes priced over one million dollars. However, Market Watch noted that none of these months of sales ratios were close to past norms. 

COACHELLA VALLEY JULY 1ST MONTHS OF SALES RATIOS BY CITY:  The months of sales ratios on July 1st ranged from 0 in Thousand Palms (reflecting no current housing inventory there) to 2.8 months in Coachella. Based on these months of sales ratios, Market Watch felt that the Coachella Valley housing market still seems to favor home sellers but that appears to be rapidly shifting

COACHELLA VALLEY JUNE OVERALL DAYS IN THE MARKET:  At the end of June, the median number of days in the market throughout the Coachella Valley was 21 days (one day more than last month but six days less than at the end of June 2021). Market Watch stated that low housing inventory has kept home selling times near current low numbers, but it appears that forces are in place that will cause selling times to increase.

COACHELLA VALLEY JUNE DAYS IN THE MARKET BY CITY:  In June, Palm Springs continued to have the shortest median selling time for detached homes at 15 days, followed by Desert Hot Springs at 16 days. On the other end of the spectrum, Coachella had the longest median selling time for detached homes at 25 days. Palm Springs also had the shortest median selling time for attached homes in June at 11 days, followed by Rancho Mirage at 16 days. Cathedral City had the longest median selling time for attached homes at 31 days.

PERCENTAGE OF COACHELLA VALLEY HOMES SELLING ABOVE LIST PRICE IN JUNE:  In June, 54.2% of homes sold in the Coachella Valley sold above list price (compared to 45.9% in June 2021). Market Watch noted that in more normal times roughly 10% of homes sold in the Coachella Valley sold above list price. Market Watch expects the percentage of homes sold above list price to fall as inventory increases and homeowners have more choices.

COACHELLA VALLEY AVERAGE PRICE DISCOUNTS BY CITY IN JUNE:  In June, Coachella had the highest average selling premium for detached homes at 4.5%, followed by Palm Springs at 4.1%. The lowest average selling premium for detached homes in the Coachella Valley in June was 1.2% in Indian Wells. In June, Palm Springs had the highest average selling premium for attached homes at 5.2%, followed by Rancho Mirage at 3.9%. The lowest average selling premium for attached homes in the Coachella Valley in June was 0.8% in Indian Wells.

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