Our local real estate market experts, Market Watch LLC, have just released their May 2024 desert Housing Report. Some of the highlights are as follows:

COACHELLA VALLEY MAY HOMES SALES RECOVERY: This chart shows where current May sales are as a percent of historic norms (with norms calculated from May home sales in 2016, 2017, 2018 and 2019). Home sales in May were 20.2% below normal. Market Watch noted that current home sales remain frozen at around 20% below normal. They felt that this was due to mortgage rates remaining relatively high.

COACHELLA VALLEY MAY DETACHED HOME MEDIAN PRICE: The median price of a detached home in the Coachella Valley in May settled back slightly to $710,000 after reaching an all-time high of $724,523 in April. Nevertheless, the median price of a detached home in May was up 3.6% from $685,000 in May 2023. Market Watch stated that home prices in the Coachella Valley usually peak in May or June due to seasonal patterns and they stated that they believed that this pattern would occur this year as well. They added that they felt that with inventory rising and home sales still growing at a slower rate, supply and demand would soon begin to favor buyers.

COACHELLA VALLEY MAY ATTACHED HOME MEDIAN PRICE: The median price of an attached home in the Coachella Valley ended May at $494,000 (up 1.9% from $485,000 in May 2023). Market Watch noted that attached home prices seemed to be following the normal seasonal pattern, so they expected median prices to continue to advance for one or two more months.

COACHELLA VALLEY MAY YEAR-OVER-YEAR PRICE CHANGE OF THE AVERAGE SIZE HOME BY CITY: For detached homes in the Coachella Valley in May year-over-year price changes ranged from a 14.1% gain for the average size 1,700 sq ft detached home in Coachella to a decline of 10% for the average size 2,500 sq ft detached home in Bermuda Dunes. Median detached home prices did increase in every Coachella Valley city in May except Bermuda Dunes. For attached homes in the Coachella Valley in May, year-over-year price changes ranged from a gain of 23.7% for the average size 1,450 sq ft attached home in Bermuda Dumes to a decrease of 7% for the average size 750 sq ft attached home in Desert Hot Springs. Median Attached home prices increased year-over-year in 4 of 9 Coachella Valley cities surveyed (Bermuda Dumes, Indio, La Quinta and Palm Desert).

COACHELLA VALLEY MAY MONTHLY HOME SALES (3 MONTH AVERAGE): The 3 month average of home sales in the Coachella Valley in May was 763 home sales per month (down 14 home sales from an average of 777 home sales per month in May 2023). Market Watch stated that because of seasonality, it's difficult to determine where home sales stand on a historical basis. They noted that the Sales Recovery Chart distinguished seasonal changes from real changes and showed that home sales in the Coachella Valley in May were 20.2% below historic norms.

COACHELLA VALLEY MAY MONTHLY HOME SALES (12 MONTH AVERAGE): The 12-month average monthly home sales in the Coachella Valley in May (which they felt removed seasonality from the data) was 620 home sales per month (effectively the same as the 624 monthly home sales in May 2023). Market Watch expressed their belief that home sales will recover when mortgage rates come back to the 5.5%-6% range. However, they also noted that although the inflation rate has declined, the Federal Reserve Board seemed reluctant to lower rates until the evidence is stronger that inflation will remain low.

COACHELLA VALLEY MAY HOME SALES BY CITY: Of all of the cities in the Coachella Valley, in May Palm Desert had the highest average monthly home sales at 172 (down slightly from 179 monthly sales in May 2023), followed by Palm Springs with 164 average monthly home sales (compared to 156 monthly average monthly home sales in May 2023). Four Coachella Valley cities (Palm Springs, La Quinta, Desert Hot Springs and Indian Wells) had higher average monthly home sales compared to May 2023. Most of the other Coachella Valley cities had monthly average home sales comparable to levels in May 2023.

COACHELLA VALLEY MAY MONTHLY HOME SALES BY PRICE RANGE: Market Watch started by explaining that because of the increase in home prices in the Coachella Valley, the lowest price range measured is now homes priced under $300,000 and there are now two price ranges for homes priced over $1,000,000. In May, the largest home sales increase continued to be in homes priced over $1,000,000. Home sales in most price ranges were comparable to home sales in May 2023, except for homes priced under $500,000 where home sales decreased year-over-year. Market Watch felt that this was a positive since it showed the housing market was well balanced in most price ranges.

COACHELLA VALLEY MAY HOME SALES IN DOLLARS: Coachella Valley home sales in dollars in May were $689,000,000 (up 1.5% from $679,000,000 in May 2023) Market Watch pointed out that this sales data showed the same seasonal pattern as the sales data for the three month average number of homes sold.

COACHELLA VALLEY MAY HOME SALES IN DOLLARS BY CITY: Coachella Valley home sales in dollars in May were up year-over-year in Palm Springs (at $153,000,000 up 11.7% from $137,000,000 in May 2023), Rancho Mirage (at $93,000,000 up 4.5% from $89,000,000 in May 2023), and Indian Wells (at $63,000,000 up 34% from $47,000,000 in May 2023).

COACHELLA VALLEY MAY HOME SALES IN DOLLARS BY PRICE RANGE: Coachella Valley home sales in dollars in May increased in the $500,000-$599,000 price range (at $65,000,000 up 6.6% from $61,000,000 in May 2023), in the $600,000-$699,000 price range (at $57,000,000 up 11.8% from $51,000,000 in May 2023), in the $800,000-$899,000 price range (at $37,000,000 up 8.8% from $34,000,000 in May 2023) and in the $1,000,000 to $1,999,000 price range (at $187,000,000 up 11.3% from $165,000,000 in May 2023). Market Watch pointed out that sales of homes priced over $1,000,000 accounted for over 50% of all home sales in dollars in May in the Coachella Valley.

COACHELLA VALLEY JUNE 1ST HOME INVENTORY: On June 1st, the Coachella Valley home inventory was 2,610 homes (the highest level in four years). Market Watch stated that while inventory has improved, in May it continued to be about 1,000 homes below the pre-pandemic norm. Further, they stated that the seasonal pattern of inventory now suggested that inventory would begin to decline entering the summer months.

COACHELLA VALLEY JUNE 1ST HOME INVENTORY BY CITY: The highest home inventory levels were in Palm Springs (at 648 homes up 39.7% from 464 homes on June 1st, 2023), Palm Desert (at 509 homes up 38.3% from 368 homes on June 1st, 2023) and La Quinta (at 372 homes up 32.4% from 281 homes on June 1st, 2023).

COACHELLA VALLEY JUNE 1ST HOME INVENTORY BY PRICE RANGE: On June 1st, home inventory in the Coachella Valley increased in every price range from under $300,000 to over $2,000,000. The highest home inventory on June 1st was for homes priced between $1,000,000-$1,999,000 (at 478 homes up 33.9% from 357 homes on June 1st, 2023).

COACHELLA VALLEY JUNE 1ST OVERALL MONTHS OF SALES RATIO: On June 1st, the Coachella Valley’s overall months of sales ratio was 4.2 months, which is 1.2 months more than last year. Market Watch pointed out that this fundamental ratio, which measures supply and demand, is now back to pre-pandemic levels. They added that even though home inventory was still relatively low, the low home sales numbers have kept supply and demand in balance and this was a major reason why Coachella Valley home prices have remained stable over the last twelve months.

COACHELLA VALLEY JUNE 1ST MONTHS OF SALES RATIO BY CITY: The months of sales ratio in every Coachella Valley city was higher or the same as the months of sales ratio on June 1st 2023. Market Watch claimed to be pleased to see that most of the Coachella Valley cities continued to have months of sales ratios between three and four months. They added that since months of sales is really the supply-demand equation for housing, it showed whether the housing market was balanced. Market Watch felt that the consistency in the months of sale ratios by city was a good sign.

COACHELLA VALLEY JUNE 1ST MONTHS OF SALES RATIO BY PRICE RANGE: The months of sales ratio increased year-over-year in every price range from under $300,000 to over $2,000,000. Market Watch noted that the increase in months of sales ratios were particularly noticeable in homes priced between $600,000 and $1,000,000, which they felt showed that the supply side of the market in these price ranges was increasing.

COACHELLA VALLEY MAY OVERALL DAYS IN THE MARKET: At the end of May, the median number of days in the market (for detached and attached homes together) in the Coachella Valley was 45 days (5 days more than at the end of May 2023). Market Watch noted that the median selling time in the Coachella Valley had been stable for the last three months. They continue to believe the median selling time would remain around current levels continuing on into the year.

COACHELLA VALLEY MAY DAYS IN THE MARKET BY CITY: In May, Coachella had the lowest average selling time at 27 days (down from 33 days in May 2023), followed by Desert Hot Springs at 36 days (up from 33 days in May 2023) and Indian Wells at 39 days (down from 44 days in May 2023). In May, Rancho Mirage had the highest average selling time at 51 days (up from 39 days in May 2023).

COACHELLA VALLEY MAY DAYS IN THE MARKET BY PRICE RANGE: In May, homes priced above $2,000,000 had the longest selling time at 51 days (up from 37 days in May 2023), followed by homes priced between $800,000-$899,000 at 49 days (up from 43 days in May 2023), homes priced between $300,000-$399,000 at 47 days (up from 36 days in May 2023), homes priced between $500,000-$599,000 also at 47 days (up from 39 days in May 2023) and homes priced between $700,000-$799,000 also at 47 days (up from 41 days in May 2023). Market Watch advised looking for an abnormally high number of days in the market as a sign of a slight market disruption in that price range.

COACHELLA VALLEY MAY OVERALL SELLING PRICE PREMIUM/DISCOUNT: In May, detached homes in the Coachella Valley were selling at an average discount of 2.1% (compared to an average discount of 2.2% in May 2023). In May, attached homes in the Coachella Valley were selling at an average discount of 2.6% (compared to an average discount of 2.4% in May 2023). Market Watch expressed their surprise at how close the average price discounts were for both detached and attached homes and how the trends for detached and attached homes seemed to move up and down together. They added that current selling price discounts were in line with the pre-covid averages.

COACHELLA VALLEY MAY HOME PRICE SELLING DISCOUNTS BY CITY: in May, Desert Hot Springs had the lowest selling price discount at 0.2% (compared to a selling price discount in Desert Hot Springs of 0.7% in May 2023). The largest selling price discount in May was 3.4% in Rancho Mirage (compared to a selling price discount in Rancho Mirage of 3.0% in May 2023).

COACHELLA VALLEY MAY HOME PRICE SELLING DISCOUNT BY PRICE RANGE: The highest average selling price discount in May in the Coachella Valley was 3.8% for home priced over $2,000,000 (the same as in May 2023),followed by an average selling price discount of 3.5% for home priced between $900,000 and $999,000 (compared to an average selling discount of 2.5% in May 2023). Market Watch noted that as a general rule, the average selling price discount in the Coachella valley at least increases with higher priced homes.

COACHELLA VALLEY MAY PERCENTAGE OF HOMES SELLING ABOVE LIST PRICE: In May, the percentage of homes selling over list price in the Coachella valley was 15.3% (compared to 16.8% in May 2023). Market Watch stated that they continued to expect the number of homes selling above list to remain approximately one out of seven (roughly 14.3%).

THE BRIGGS GROUP | COLDWELL BANKER | Laurie Briggs - DRE# 01896117 | Tim Briggs - DRE# 01898254 | Coldwell Banker Realty - DRE# 00616212