Our Desert Real Estate Market Experts are out with their May Desert Housing Report. Some of the highlights:
COACHELLA VALLEY MAY HOME SALES RECOVERY: Coachella Valley home sales have been slowly improving and in May they were below the pre-pandemic average (calculated from May home sales in the years 2016, 2017, 2018 and 2019) by 20.1%.
COACHELLA VALLEY MAY DETACHED HOME MEDIAN PRICE: The median price of a detached home in the Coachella Valley at the end of May was $700,000 (down $8,458 or 1.2% from the detached home median price of $708,458 in May 2024). Market Watch commented that the Coachella Valley’s detached home median price usually hits its seasonal low between September and December, and its high in April or May. They also commented that detached homes have held the price gains made during the pandemic.
COACHELLA VALLEY MAY ATTACHED HOME MEDIAN PRICE: The median price of an attached home in the Coachella Valley at the end of May was $480,000 (down $10,000 or 2% from the attached home median price of $490,000 at the end of May 2024). Market Watch commented that the attached home median price seemed to be following the normal seasonal pattern here, too.
COACHELLA VALLEY MAY YEAR-OVER-YEAR PRICE CHANGE OF AVERAGE SIZE HOMES BY CITY: Year over year price changes in the average size detached home ranged from an increase of 20.1% in Indian Wells (increasing from $1,839,644 in May 2024 to $2,208,794 this past May for the 3,450 sq ft average size detached home in Indian Wells) to a decrease of 4.2% in Coachella (decreasing from $478,176 in May 2024 to $458,074 this past May for the 1,700 sq ft average size detached home in Coachella). Year over year price changes in the average size attached home ranged from an increase of 7.6% in Indian Wells (increasing from $745,680 in May 2024 to $802,386 this past May for the 1,950 sq ft average size attached home in Indian Wells) to a decrease of 6.6% in La Quinta (decreasing from $705,233 in May 2024 to $658,796 this past May for the 1,750 sq ft average size attached home in La Quinta).
COACHELLA VALLEY MAY MONTHLY HOME SALES (THREE MONTH AVERAGE): Coachella Valley monthly home sales in May averaged 738 homes (down 41 homes or 5.3% from 779 average monthly home sales in May 2024). Market Watch explained that because of seasonality in Coachella Valley home sales, it was difficult to determine where home sales stood on a historical basis. The Sales Recovery data discussed below showed that home sales in May were below pre-pandemic May norms by 20.1.
COACHELLA VALLEY MAY MONTHLY HOME SALES (TWELVE MONTH AVERAGE): In the Coachella Valley, May monthly home sales averaged 605 homes (using a 12 month average, which removes the seasonality from Coachella Valley homes sales data). This was down 19 home sales or 3% from 624 average homes sales in May 2024. Market Watch stated that the housing market needs lower mortgage rates. Further they added that although inflation remains low, the Federal Reserve Board has stopped lowering short-term rates until the effect of the administration’s new economic policies can be determined.
COACHELLA VALLEY MAY MONTHLY HOME SALES BY CITY: In the Coachella Valley in May, Palm Desert had the highest monthly home unit sales at 166 (down 8 homes or 4.6% from 174 monthly home sales in May 2024), followed by Palm Springs with 143 average monthly home sales (down 24 home sales or 14.4% from 167 average monthly home sales in May 2024) and La Quinta with 125 average monthly home sales (up 1 home sale or 0.8% from 124 average monthly home sales in May 2024). On the other end of the spectrum, Coachella had the lowest May average monthly home sales at 7 (down 3 homes or 30% from 10 average monthly home sales in May 2024).
COACHELLA VALLEY MAY MONTHLY HOME SALES BY PRICE RANGE: The highest average monthly home sales were for homes priced between $1M and $1.999M at 114 sales (down 22 home sales or 16.2% from 136 average monthly home sales in May 2024). The lowest average monthly home sales were for homes priced between $900K and $999K at 29 sales (down 2 home sales or 6.5% from 31 average monthly home sales in May 2024).
COACHELLA VALLEY MAY MONTHLY HOME SALES IN DOLLARS: In the Coachella Valley in May, average monthly home sales in dollars were $694M (down $8M or 1.1% from $702M in May 2024).
COACHELLA VALLEY MAY MONTHLY HOME SALES IN DOLLARS BY CITY: Market Watch noted that Coachella Valley May average monthly home sales in dollars appeared to be comparable to last year in every city except La Quinta with average monthly home sales at $170M (up $27M or 18.9% from home sales of $143M in May 2024), Palm Springs with average monthly home sales at $132M (down $24M or 15.4% from home sales of $156M in May 2024)and Palm Desert with average monthly home sales at $124M (down $15M or 10.8% from home sales of $139M in May 2024).
COACHELLA VALLEY MAY MONTHLY HOME SALES IN DOLLARS BY PRICE RANGE: By far, the highest average monthly home sales were for homes priced over $2M at $224M (up $39M or 21.1% from $185M in May 2024) and for homes priced between $1M and $1.999M at $158M (down $29M or 15.5% from 187M in May 2024). Market Watch commented that in May these two price ranges continued to account for 50% of all average monthly home sales in dollars in the Coachella Valley.
COACHELLA VALLEY JUNE 1st INVENTORY OF ACTIVE LISTINGS: On June 1st, the Coachella Valley active listings inventory was 3,651 homes (up 1,054 homes or 40.1% from 2,597 homes on June 1st, 2024). Market Watch stated that the inventory of active listings in the Coachella Valley has been improving, with the current level comparable to the inventory level before the pandemic. They further commented that the usual seasonal pattern suggested that inventory had probably peaked moving into summer.
COACHELLA VALLEY JUNE 1st INVENTORY OF ACTIVE LISTINGS BY CITY: The largest active listings inventory in the Coachella Valley on June 1st was in Palm Springs at 835 homes (up 187 homes or 28.9% from 648 homes on June 1st, 2024). The smallest active listings inventory in the Coachella Valley on June 1st was in Coachella at 32 homes (up 11 homes or 52.4% from 21 homes on June 1st, 2024). Market Watch suggested that this information could help identify those Coachella Valley cities where homeowners had the greatest selling interest compared to the same time last year.
COACHELLA VALLEY JUNE 1st INVENTORY OF ACTIVE LISTINGS BY PRICE RANGE: The largest active listings inventory in the Coachella Valley on June 1st was for homes priced between $1M and $1.999M at 685 homes (up 207 homes or 43.3% from 478 homes on June 1st, 2024). The smallest active listings inventory in the Coachella Valley on June 1st was for homes priced between $900K and $999K at 169 homes (up 30 homes or 21.6% from 139 homes on June 1st, 2024). Market Watch noted that this information could be useful in identifying those price ranges responsible for inventory growth or contraction.
COACHELLA VALLEY JUNE 1st MONTHS OF SALES RATIO: On June 1st, the Coachella Valley’s months of sales ratio was 6.0 months (up 1.8 months or 42.9% from 4.2 months on June 1st, 024). Market Watch explained that this fundamental ratio, which measures housing supply and demand, was above pre-pandemic levels. They noted that while inventory has recovered, because of low sales, home sale supply was beginning to exceed home purchase demand. They further explained that this should not cause a problem for home prices unless it begins to extend average selling times, which are currently normal.
COACHELLA VALLEY JUNE 1st MONTHS OF SALES RATIO BY CITY: On June 1st in the Coachella Valley, the highest months of sales ratio was in Palm Springs at 5.8 months (up 1.9 months or 48.7% from 3.9 months on June 1st, 2024). On June 1st in the Coachella Valley, the lowest months of sales ratio was in Indian Wells at 3.8 months (the same as on June 1st, 2024). Market Watch did comment that since the months of sales ratio is really the housing supply-demand equation, it showed that the Coachella Valley housing market was becoming supply-heavy.
COACHELLA VALLEY JUNE 1st MONTHS OF SALES RATIO BY PRICE RANGE: On June 1st in the Coachella Valley, the highest months of sales ratio was for homes priced between $1M and $1.999M at 6.0 months (up 1.7 months or 68% from 2.5 months on June 1st, 2024). On June 1st in the Coachella Valley, the lowest months of sales ratio was for homes priced between $300K and $399K at 4.2 months (the same as on June 1st, 2024). Market Watch did state that since months of sales ratios were really the housing supply and demand equation, the large increases in the months of sale ratios over last year showed that supply was starting to exceed demand in almost all price ranges. They felt that this hadn’t affected home prices yet and most probably would not until selling times begin to lengthen.
COACHELLA VALLEY MAY OVERALL DAYS IN THE MARKET: At the end of May, the median number of days in the market in the Coachella Valley was 49 days (up 5 days or 11.4% from 44 days at the end of May 2024). Market Watch commented that the median selling time in the Coachella Valley region had been between 40 and 50 days for over two years.
COACHELLA VALLEY MAY DAYS IN THE MARKET BY CITY: In the Coachella Valley in May, Coachella had the shortest median selling time at 33 days (down 3 days or 8.3% from 36 days in May 2024). In the Coachella Valley in May, Indio had the longest median selling time at 54 days (up 4 days or 8% from 50 days in May 2024).
COACHELLA VALLEY MAY DAYS IN THE MARKET BY PRICE RANGE: In the Coachella Valley in May, the shortest median selling time was for homes priced between $900K and $999K and for homes priced between $1M and $1,999M both at 41 days (in both cases down 1 day or 2.4% from 42 days in May 2024). In the Coachella Valley in May, the longest median selling time was for homes priced under $300K at 58 days (up 15 days or 34.9% from 43 days in May 2024). Market Watch stated that usually, selling times increase with higher priced homes. They felt that they didn’t see that in the current Coachella Valley housing market, which they felt was a positive.
COACHELLA VALLEY MAY AVERAGE SALE PRICE PREMIUM/DISCOUNT: In the Coachella Valley in May, detached homes were selling at an average discount of 2.6% (compared to 2.0% in May 2024). In the Coachella Valley in May, attached homes were selling at a discount of 3.0% (compared to a discount of 2.6% in May 2024). Market Watch pointed out that the premium/discounts for both detached and attached homes seemed to move up and down together. They added that premium/discounts were now back to pre-pandemic norms.
COACHELLA VALLEY MAY AVERAGE SELLING DISCOUNT BY CITY: In the Coachella Valley in May, Desert Hot Springs had the lowest average selling discount at 1% (compared to an average selling discount of 0.1% in May 2024). In the Coachella Valley in May, Indian Wells and Palm Springs had the highest average selling discount at 4.0% (in the case of Indian Well compared to an average selling discount of 2.5% in May 2024 and in the case of Palm Springs compared to an average selling discount of 3.1% in May 2024).
COACHELLA VALLEY MAY AVERAGE SELLING DISCOUNT BY PRICE RANGE: In the Coachella Valley in May, the lowest average selling discount was for homes priced between $500K and $599K at 1.7% (compared to an average selling discount of 1.6% in May 2024). In the Coachella Valley in May, the highest average selling discount was for homes priced under $300K at 4.3% (compared to an average selling discount of 3.1% in May 2024). Market Watch did state that as a rule, price discounts increase with higher priced homes. In the Coachella Valley in May, they pointed out that the mid-range price ranges had the lowest average selling discounts.
COACHELLA VALLEY MAY PERCENTAGE OF HOMES SELLING ABOVE LIST PRICE: In the Coachella Valley in May, the percentage of homes selling above list price was 10.6% (down from 15.7% in May 2024). Market Watch added that the percentage of homes selling above list price was now back to pre-pandemic levels.
THE BRIGGS GROUP | COLDWELL BANKER | Laurie Briggs - DRE# 01896117 | Tim Briggs - DRE# 01898254 | Coldwell Banker Realty - DRE# 00616212