Local real estate market experts, Market Watch LLC, have just released their January 2017 Coachella Valley Housing Report. Some of the highlights are:
Coachella Valley Median Detached Home and Condo Prices
The median price for Coachella Valley detached homes in January 2017 was $340,000. While unchanged from the previous month, the detached home median price is up 1.5% over the last twelve months. The median Coachella Valley condominium price in January 2017 was $234,750, up 2% from a year ago. Condominium prices continue to lag percentage wise those of detached homes in the overall recovery. Market Watch did note that the condominium median price is continuing to exhibit a cyclical price pattern with a median price low sometime around September after which it steadily rises to an eventual high around April, after which it falls back until another low point is made in autumn. The median price for detached homes has a similar pattern but it is more variable and far less pronounced.
12 Month Change in City Median Prices
On a year over year basis, the median prices of Coachella Valley detached homes is higher in eight of the nine major cities and lower in one, Rancho Mirage. Desert Hot Springs, the City of Coachella and Cathedral City continue the strong price gains they established last year. Market Watch noted that condominium prices continue to lag detached homes in the overall recovery, in part due to the fact that 75% of condominium owners are not residents but remote owners.
Monthly Sales – 3 Month Trailing Average And Monthly Sales - 12 Month Trailing Average
The 3 month average of sales, which measures the seasonal patterns, continues to point to higher sales in both detached homes and condos in 2017. Market Watch estimates that sales will be higher by about 10% to 15%. In January 2017, condo sales were 231 units (16% higher than in January 2016); detached home sales were 469 units (19% higher than in January 2016). The long term 12 month average of sales takes out all seasonality so every month can be compared to any other month. In January 2017, the 12 month average was 6% above a year ago. Market Watch feels that the twelve month average should increase to about 800 unit sales a month, a gain of almost 15% over the 700 unit average of a year ago.
Home Sales By Price Range
When Market Watch compared three month sales by the various price brackets, they found that there was a 25% increase in sales in the $200k to $300k and a 40% increase in sales in the $300k to $400k price range. Combined sales for homes that sold from $400k to $700k also increased, but only by 2%.
Coachella Valley Inventory And “Months of Supply” And “Days on the Market
Heading into the new selling season, Market Watch feels that inventory continues to look positive. On February 1st, total inventory stood at 4,926 units, 879 less than the same time last year. In fact, they noted that the current inventory level is almost exactly equal to the inventory on February 1st of 2 years ago. Higher sales and better inventory numbers have lowered the” months of supply” ratio to 6.7 months, which is 1.7 months less than February of last year. The current ratio is lower than even 2 years ago, when at this time it was 7 months.
Sale Price Discount From List
The latest Sale Price Discount from List” is at -2.0%, which is 6/10 of a percent better than a year ago. This percent implies that the selling discount to a home listed for $300,000 home was approximately $6,000.
This information is produced for Coachella Valley agents through the sponsorship and cooperation of the Palm Springs Regional Association of Realtors® (PSRAR) and the California Desert Association of Realtors® (CDAR) by Market Watch LLC.