(Please click on the image above to view our short YouTube video)
Recognizing that the metrics utilized in their standard Desert Housing Report do not accurately reflect the rapidly changing market conditions caused by the Coronavirus pandemic and stay at home restrictions, local real estate market experts, Market Watch LLC, developed shorter term housing metrics based on a 28 day average for their May 2020 COVID-19 Desert Hosing Report. Some highlights:
For comparison purposes, Market Watch looked at average daily sales in Los Angeles County, Orange County and the Coachella Valley. Starting with Los Angeles County, Market Watch explained that pending sales (homes in escrow) is a precursor to final or closed sales. With the average escrow time in Los Angeles County of 35 days, by moving pending sales forward 35 days, Market Watch can estimate the number of average daily home sales will be in 35 days. Los Angeles County average daily closed sales were 84 units per day on May 31st and average daily pending sales were 73 units per day on May 31st (down 58% from average daily pending sales of 174 units per day one year ago). Market Watch noted that Los Angeles County pending sales have been flat now for six weeks.
Market Watch noted that Orange County home sales average 30 days in escrow, so by moving pending sales forward 30 days, they are able to estimate the number of closed sales there in 30 days. Average daily closed sales were 42 units per day on May 31st and average daily pending sales in Orange County were averaging 26 units per day on May 31st (down 68% from the average daily pending sales of 83 one year ago)
Since Coachella Valley escrows average 14 days (far shorter than Orange County and LA County due to the large number of cash purchases here), by moving pending sales forward 14 days, Market Watch can estimate the number of closed sales in 14 days. Pending single-family residence sales in the Coachella Valley were averaging 16 units a day on May 31st (a decrease of 27% from the average pending single-family residence sales of 22 units per day one year ago, contrary to the note on the chart). Market Watch noted that pending sales of single-family residences in the Coachella Valley have been rising now for a month and they expect closed sales to follow.
Average daily pending condo sales in the Coachella Valley on May 31st were 4 units per day (down 60% from average pending condo sales of 10 units per day one year ago), showing that the Coronavirus pandemic has affected the condo market much more than single-family residences.
Average weekly pending sales of all homes on May 31st declined by more than 40% year-over-year in Palm Desert, Palm Springs, and Rancho Mirage. In large part this was due to average pending sales of condominiums in these cities declining by 50% or more year-over-year.
Market Watch noted that the average price per square foot for single-family residences was $264 on May 31st (an increase of 11% from the average square foot price for single-family residences of $238 one year ago). Market Watch attributed this increase to a price surge in Palm Springs. The average square foot price for condos increased to $211 on May 31st (an increase of 1% from the $209 per sq ft price one year ago).
Market Watch noted increases in the average price per square foot for single-family residences since March 19th in Indian Wells, Indio, La Quinta and Palm Springs (and for the entire Coachella Valley, primarily due to the large gains in Indian Wells and Palm Springs). Condominium average square foot prices increased from March 19th in Cathedral City, Indian Wells and Palm Springs.
Market Watch noted that daily Coachella Valley inventory numbers over the last year show a steady decline since the March 19th stay at home order. As of June 1st, Coachella Valley housing inventory was 2,740 units compared to 3,419 units one year ago and 3,019 units on March 19th.
Market Watch noted that average daily new listings in the Coachella Valley have been increasing for 5 weeks. Average daily new listings on May 31st was 25 units per day (11% below the average daily new listings of 28 units per day one year ago). Market Watch also pointed out the seasonal falloff in new listings between Thanksgiving and the first few weeks of the New Year.
Market Watch remarked that the average number of days in the market for closed single-family residence sales was 77 days on June 1st (versus 87 days one year ago). Average days in the market for condominiums was 72 days (versus 73 days one year ago).
Market Watch pointed out that the average price discount for single-family residences was 3% (the same as one year ago). The average price discount for condominiums which had been rising for two months suddenly jumped to 4.4% (up from 3.2% one year ago). Market Watch stated that most of this increase was due to five or six condominium sales in Palm Springs that sold with discounts of over 10% of list price.
CalDRE# 01898254 | 01896117 | 01991628