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Local real estate market gurus, Market Watch LLC, have just released The Desert Housing Report for May 2018. Some of the highlights are:

The detached home median price for the entire Coachella Valley rose to $412,000 in May (an increase of 6% from last May’s $389,000 and up from $406,000 in April).

The May Coachella Valley attached home median price was $275,000 (up 5.8% from last May’s $260,000 and up slightly from $274,500 in April). Market Watch commented that the chart of Coachella Valley attached home median prices clearly shows that over the last six or seven years attached home prices have reached a seasonal peak in either May or June then declined through summer and early fall. They are interested to see if this pattern will continue in 2018.

For the first time in two years, the median price of detached homes in all nine Coachella valley cities showed positive year over year price changes. This reinforces Market Watch’s conclusion that the housing market in the Coachella Valley is continuing to strengthen. Indian Wells and Palm Desert, which have been lagging in terms of changes in median price for the last two years, showed the Valley’s highest year-over-year median price gains of 28.8% and 14.5% respectively. In terms of attached homes, Market Watch noted that the changes in attached home prices continue to lag those of detached homes. The three cities with the largest year-over-year increases in attached home median prices were Desert Hot Springs (+28.8%), Indio (+24.4%) and Cathedral City (17.9%).

Total sales of detached and attached homes, based on a three month moving average, rose to 1,065 units per month (the highest level in five years and a 4.6% increase over last May’s 1,018 sales per month). The increase was evenly distributed between detached and attached homes, with detached home sales up 5.4% year-over-year and attached home sales up 3.2% year-over-year. Market Watch pointed out that using the 12 month average sales, 64.7% of all Coachella Valley sales were detached homes while 35.3% were attached homes.

In looking at monthly home sales by city, Market Watch observed that every city shows higher sales over last year except Indian Wells, Rancho Mirage and Palm Springs. Palm Desert lead the pack with sales of 241 units per month (compared with 219 sales last May); Palm Springs was second with sales of 206 units per month (versus 213 sales last May); and La Quinta was third with sales of 172 units per month (versus 162 sales last May).

In looking at home sales by price range, Market Watch observed that sales were higher in all price brackets except the two under $300k, primarily because there are so few homes priced there. Sales of homes in the $800k to $900k and $900k to $1M brackets were up close to 50% year-over-year, while sales of homes priced over $1 million were 87 units (up 19% year-over-year).

The Coachella Valley’s housing inventory continues to shrink to 3,327 units on June 1st (786 units less than the inventory of 4,113 units recorded at the same time last year). Market Watch expects inventory this autumn to probably reach roughly 2,700 units, the lowest level in over five years.

The months of supply ratio shows the same declining pattern as inventory, except as Market Watch noted that it’s even more pronounced because of the mathematical effect of dividing lower inventory by higher sales. The months of supply ratio for the entire Coachella Valley is now 3.9 months (vs. 5.2 months a year ago). The median days on market in May for the Coachella Valley was 64 days (10 days less than last May).

In looking at months of supply ratio by price range, Market Watch stated that months of supply ratio showed large improvements (decreases) in all price brackets, especially the higher ones, in Market Watch;s opinion, indicating that the continual improvement in the Coachella Valley’s basic housing metrics is both real and broad based and are not some temporary statistical anomaly but rather are rooted in underlying changes in consumer confidence and demographic trends that will continue.

The months of supply ration by city improved (decreased) in all of the Coachella Valley cities except Coachella and Thousand Palms. The biggest gains were in Rancho Mirage, Palm Desert, Cathedral City and Bermuda Dunes. Market Watch noted that only four cities now have months of supply ratios over four months.

The information and commentary contained in this post are produced for Coachella Valley real agents through the sponsorship and cooperation of the Palm Springs Regional Association of Realtors® (PSRAR) and California Desert Association of Realtors® (CDAR) by Market Watch LLC.