Local real estate market experts, Market Watch LLC, recently unveiled their Monthly Coachella Valley Housing Report for May 2016. Some of the highlights are as follows:
- In May 2016, the median price throughout the Valley was $349,000 (exactly equal to the median price throughout the Valley one year ago).
- They do see more positive median price changes on a city by city basis, with five cities showing positive, double digit gains (in particular, the City of Coachella with a median price up 18% from a year ago).
- While average sales over the last three and twelve months did decline compared to a year ago, the differences are very small (and for all intents and purposes can be considered equal).
- The inventory of 4,962 properties on June 1st is only 346 units above the level one year ago, showing the inventory problem that appeared to emerge at the start of this year’s selling season (reaching 5,980 properties on March 1st) has not intensified but has actually somewhat abated.
- With the rapid decline in inventory to a level only 346 units higher than last year and with sales numbers comparable to last year’s numbers, the ratio of “months of sales” on June 1st was relatively close to last year’s ratio (currently 7.2 months versus 6.6 months a year ago).
The following charts and information were of particular interest:
Changes in City Median Prices
As noted above, Market Watch was pleased to see that the median price of detached homes in most cities is higher when compared to a year earlier, with five cities showing positive, double digit gains. They note that this might not have been expected a few months ago given the very large inventory of homes that accompanied the start of the spring selling season. The median price in Palm Springs at $550,500 is only 8% from its all-time 2006 high of $600,000. In Desert Hot Springs, the median price at $178,500 is still 39.5% off from the 2006 high of $295,000.
Homes Sales Per Month By City
Just as the entire region shows sales just about equal to a year ago, Market Watch points out that most city sales are about equal to last year, with a few slightly higher and a few slightly lower. Sales in the city of Coachella are 50% higher than a year ago (18 units versus 12) while Indian Wells is also higher by 15%. However, Rancho Mirage is lower by 10% and Palm Springs is also slightly lower by about 5%.
“Months of Sales” and “Days on the Market”
Market Watch concludes that with the rapid decline in inventory to a level only 346 units higher than June 1st of last year and with sales numbers comparable to last year’s numbers, the ratio of “months of sales” on June 1st was relatively close to last year’s ratio. The ratio is currently 7.2 months; a year ago it was 6.6 months. While both ratios are still rather high, the fact that the difference of the current ratio compared to last year is declining is encouraging. Days on the market (DOM) is 93 days, just two more compared to a year ago. These numbers are effectively equal to three months, which is generally considered an acceptable period of time.
“Months of Sales” by Price Range
Calculating “months of sales” inventory levels at various price brackets, Market Watch notes that the ratios are just a little higher than a year ago, except for prices over $700,000. Above $700,000, the differences in months of sales inventory compared to last year begin to widen. For homes priced from $700,000 to $800,000, the ratio rose from 11.1 months to 15 months. For homes priced over $1,000,000, the ratio has climbed from 19.8 months to 23.1 months.
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