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Our local real estate market experts, Market Watch LLC, have just released their March 2023 Desert Housing Report and we though that we’d share some highlights below.
COACHELLA VALLEY DETACHED HOME MEDIAN PRICE: The median price of a detached home in the Coachella Valley in March was $689,000 (up $7,210 or 1.1% from February and up 4.4% from $660,000 in March 2022. Market Watch noted that this was the third consecutive monthly increase in the detached home median price in the Coachella Valley, but also noted that this was somewhat expected since Coachella Valley home prices are in their seasonal strong period. The Coachella Valley detached home median price in March was only 3% below the peak price of $710,000 reached in July 2022.
COACHELLA VALLEY ATTACHED HOME MEDIAN PRICE: The median price of an attached home in the Coachella Valley in March price was $460,000 (up $26,000 or 6% from February and up 2.2% from $450,000 in March 2022. The attached home median price in March was only 6.3% below its peak level of $491,056 in May 2022. Market Watch noted that seasonally driven attached home price increases normally begin by January or February and they expected these price increases to continue moving toward summer.
TWELVE MONTH CHANGE IN THE PRICE OF THE AVERAGE SIZE HOME BY CITY: Detached home prices increased year-over-year increased 6.6% in Cathedral City for the 1,800 sq ft average size detached home in that city, 6.2% in Desert Hot Springs for the 1,600 sq ft average size detached home in that city, 3.7% in Rancho Mirage for the 3,175 sq ft average size detached home in that city and 0.6% in La Quinta for the 2,550 sq ft average size home in that city. Average size detached home prices decreased in all other Coachella Valley cities year-over-year, ranging from a decrease of -0.3% in Palm Springs for the 2,1745 sq ft average size home in that city to -7.2% in Coachella for the 1,700 sq ft average size detached home in that city. Attached home prices increased year-over-year in 7 Coachella Valley cities, with increases ranging from 23.6% in Desert Hot Springs for the 750 sq ft average size attached home in that city to 0.7% Palm Desert for the 1,600 sq ft average size attached home in that city. Prices of attached homes decreased year-over-year in 2 Coachella Valley cities, ranging from a decrease of -3.0% in La Quinta for the 1,750 sq ft average size attached home in that city to -7.5% in Indio for the 1,050 sq ft average size attached home in that city.
MONTHLY COACHELLA VALLEY HOME SALES (THREE-MONTH TRAILING AVG): The three-month average of Coachella Valley home sales in March rose to 545 homes per month (up 21.4% from 449 home sales per month in February and down 40.1% from 910 homes sales per month in March 2022). Market Watch noted that this increase in the Coachella Valley’s three-month average home sales was seasonal, with over 700 home sales in March. Market Watch expects this trend to continue a few more months. They also pointed out that before the pandemic, March Coachella Valley home sales averaged 788 home sales per month, so sales are running 30% below average.
MONTHLY COACHELLA VALLEY HOME SALES (TWELVE-MONTH TRAILING AVG): The 12-month average of Coachella Valley homes sales, which takes out seasonality, shows total home sales averaged 623 home sales per month (down 35.2% from 962 home sales per month in March 2022). Market Watch noted that this is the 20th consecutive decline in monthly Coachella Valley home sales. Market Watch also noted that long term home sales are running about 22% below the prepandemic home sales average of 800 home sales per month.
MONTHLY COACHELLA VALLEY HOME SALES BY CITY: Every Coachella Valley city continued to have lower three-month average home sales compared to March 2022. The largest percentage declines in March homes sales year-over-year were in Cathedral City (down 57.3%), followed by Desert Hot Springs (down 47.7%) and Indio (down 44.3%). The cities of Coachella (down 7.7% year-over-year) and Palm Desert (down 28.6% year-over-year) had the smallest percentage of home sales decline year-over-year in March.
MONTHLY COACHELLA VALLEY HOMES SALES BY PRICE RANGE: Market Watch noted that while home sales declined in every price range in March, the largest declines continued to be in homes priced between $400,000 and $700,000. Market Watch noted that sales of homes priced over $1,000,000 improved in March and were down 39.5% year-over-year (compared to a year-over-year decline of 41% in February). Year-over-year home sales for homes priced from $900,000 to $1,000,000 were down 36% in March (compared to a year-over-year decline of 53% in February).
COACHELLA VALLEY HOME SALES INVENTORY: On April 1st, Coachella Valley home sales inventory was 1,976 homes (almost the same as February but up 1,298 homes or 191.4% from April 1st, 2022). Market Watch had hoped that inventory might possibly reach 2,500 units by the end of April, but they now doubt that will happen because monthly new listings remain near historic lows. Unless the Coachella Valley’s seasonal inventory pattern is somewhat broken, Market Watch stated that it would be normal for inventory to contract moving toward summer.
COACHELLA VALLEY REGIONAL MONTHS OF SALES RATIO: On April 1st, the Coachella Valley’s months of sales ratio was 3.2 months (up from 3.0 months in February). Market Watch noted that most of the increase in the months of sale ratio was due to falling home sales and not higher inventory. Market Watch went on to state that this fundamental ratio, which measures supply versus demand, is approaching its historic averages for this time of year. They felt that even though home sales are down, there continues to be a balance between buyers and sellers, which in turn is helping homes hold the large price gains of the last two years.
COACHELLA VALLEY MONTHS OF SALES RATIO BY PRICE RANGE: The months of sales ratios in every price range continue to far exceed year ago levels. Market Watch pointed out that the months of sale ratios for each price range were relatively close in value. They further stated that usually higher priced homes have much higher ratios, which meant that there should be price stability throughout the entire range of home prices.
COACHELLA VALLEY MONTHS OF SALES RATIOS BY CITY: Market Watch noted that the months of sales ratios were three months of less in Coachella, Thousand Palms, Indio, Palm Desert and Bermuda Dunes. They also noted how close the months of sales ratios were in each Coachella Valley city.
COACHELLA VALLEY REGIONAL DAYS IN THE MARKET: The average selling time in the Coachella Valley continued to increase in March. At the end of March, the median number of days in the market in the Coachella Valley was 48 days (one day less than in February but 25 days more one year ago). Market Watch pointed out that while increasing, the days in the market remains under its pre-pandemic average of 65 days.
DAYS IN THE MARKET BY CITY: The average selling time in each city has been increasing. In March, Palm Springs and Coachella had the lowest median selling time for detached homes at 37 days. In March, Indio had the highest median selling time for detached homes at 58 days. In the attached home market, Palm Springs had the shortest median selling time at 28 days. In March, Indio had the highest median selling time for attached homes at 61 days.
PERCENTAGE OF COACHELLA VALLEY HOMES SELLING ABOVE LIST PRICE: In March, 13.4% of Coachella Valley home sales were above list price (compared to 50.3% in March 2022). Market Watch noted that the percentage of homes selling above list continued to approach the historic norm of around 10%.
AVERAGE SELLING PRICE DISCOUNTS FROM LIST PRICE: Every Coachella Valley city had an average selling discount for detached homes in March, ranging from -0.2% in Coachella to -5.4% in Bermuda Dunes. Attached home selling discounts by city ranged from an average discount of -1.8% in Cathedral City to -5.5% in Indio.
The Briggs Group at Coldwell Banker Realty | Laurie Briggs – DRE# 01896117 | Tim Briggs – DRE# 01898254 | Coldwell Banker Realty DRE# 00616212