(Please click on the image above to view our short YouTube video)

The local real estate market experts at Market Watch LLC have just released their March 2019 Desert Housing Report. Some of the highlights include:

The month of March saw a strong surge in both sales and home prices throughout the Coachella Valley. The Coachella Valley median detached home price in March was $415,000 (up 5.9% from the median detached home price of $392,000 in March 2018).

The Coachella Valley median attached price in March was $290,000 (up 7.8% from the median attached home price of $269,000 in March 2018). Market Watch’s analysts noted that the median attached home price is finally above the 3% growth curve, which was started in the year 2002. They expect this strength in the attached home market to continue for the rest of the year, as it finally begins to play catch-up to the strong price performance witnessed in the detached housing market for the last 5 to 6 years.

The median price of detached homes increased in all nine of the major Coachella Valley cities year-over-year, ranging from an increase of 25.7% in Indian Wells to an increase of 1.8% in Palm Springs. In addition to the 25.7% increase in Indian wells, the median detached home price increased by double digits in Rancho Mirage (up 15%), Desert Hot Springs (up 15%) and Coachella (up 10%). The Coachella Valley attached home median price increased by double digits year-over-year in Rancho Mirage (up 26.7%), La Quinta (up 14.0%), Indio (up 14.8%) and Indian Wells (up 10.8%).

The March average of three-month total home sales (734 units) increased by 101 units from the 633 total units sold in February 2019. Year-over-year, total unit sales declined from 819 units in March 2018 to 734 total unit sales in March 2019.  Market Watch’s analysts noted that the decline in home sales coupled with the large price recovery of the last four or five years had created a general worry that inventory would begin to rise as local homeowners and second homeowners took advantage of the high prices to sell their homes. Market Watch’s analysts went on to note that so far, this worry has been groundless as the Coachella Valley housing inventory has not risen.

Ten of the eleven Coachella Valley cities had lower three-month sales compared to a year ago, while one, Coachella, had the same sales of 15 units a month as in March 2018. Bermuda Dunes had the largest sales decrease (down 37.5% year-over-year), followed by Cathedral City (down 22.7%), Rancho Mirage (down 20%), La Quinta (down 13.5%), Palm Desert (down 8.2%) and Palm Springs (down 2%).

Market Watch’s analysts noted that the largest drop in sales were for homes priced under $400,000, due to the dwindling supply of homes in this price range. Unit sales of homes priced under $200,000 dropped 32% (from 119 units in March 2018 to 81 units in March 2019). Sales of homes priced between $200k and $300k dropped 15% (from 206 units in March 2018 to 175 in March 2019). Sales of homes priced between $300k and $400k dropped 10% (from 187 units in March 2018 to 167 Units in March 2019). Sales of homes priced over $400k up through $1 million were comparable to last year.

Market Watch’s analysts noted that the decline in home sales coupled with the large price recovery of the last four or five years had created a general worry that inventory would begin to rise as local homeowners and second homeowners took advantage of the high prices to sell their homes. Market Watch’s analysts went on to note that so far, this worry has been groundless as the Coachella Valley housing inventory has not risen. On April 1st, the Coachella housing sales inventory stood at 3,772 units, the lowest level for the last five years.

On April 1st, the months of sales ratio (inventory divided by the average 12-month sales rate) showed a reading of 4.7 months (almost identical to the months of sales ratio of 4.5 months on April 1st, 2018, showing that the current balance of supply and demand is almost identical to what it was at the same time last year). Market Watch’s analysts pointed out that they are beginning to see a slight increase on the average number of days on market. The current number is 70 days versus 66 days last March.

Market Watch’s analysts explained that in looking at the months of sales ratio in different price brackets, they saw comparable ratios to a year ago in the price brackets below $800,000. For example, for homes priced under $200,000, the ratio of two months is exactly what it was a year ago. For homes priced over $800k, Market Watch pointed out the decline and strengthening in the month of sales ratio year-over-year.

Market Watch’s analysts pointed out that four cities (Coachella, Palm Springs, Bermuda Dunes and La Quinta) had lower months of sales ratios than at the same time last year.

The latest Sale Price Discount from List is -2.3% (0.1% less than a year ago). This ratio means the average home listed for $400,000 sold for $390,800, or a $9,200 price discount.

CalDRE# 01898254 | 01896117 | 02043759