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Local real estate market experts, Market Watch LLC, have just released their Desert Housing Report for November 2017. Some of the highlights are as follows:
The detached home median price in the Coachella Valley for November 2017 was $352,000 ($15,500 or 4.6% above a year ago).
The attached home median price in the Coachella Valley in November was $240,000 ($16,000 or 7.1% above a year ago). Market Watch noted that this year-over-year change in attached home median prices of 7.1% (versus year-over-year increases of less than 3% for some time now) might be signaling the beginning of higher annual price gains in the attached home segment of the market or at the least higher prices in the attached home segment from December until April or May.
The change in detached home median price by city over the last year shows seven cities with positive changes and only two (La Quinta and Indian Wells) with negative ones. Market Watch noted that in Palm Springs, the median home price of $599,440 was only .1% below its record price of $600,000 in 2006. Median prices for attached homes show five cities with positive changes and three with negative changes, ranging from a 20.6% gain in Indio to a decrease of 11.8% in Cathedral City.
November saw detached home sales of 458 homes (versus 453 a year ago), suggesting detached homes sales in 2018 will be comparable to those in 2017. Market Watch noted that attached home sales project at a possible 15% increase compared to last year, with the net effect possibly being an overall increase of 6% in total home sales in 2018 compared to 2017.
The Coachella Valley’s inventory of detached and attached units stood at 3,843 on December 1st (923 units below last year and the lowest inventory number since December 1st, 2012).
The combination of higher sales (12-15% above last year) and a lower inventory over the last 12 months has dropped the Valley’s months of supply ratio down to 4.7 months, the lowest December 1st reading since 2012. Market Watch felt that this months of supply ratio and the Days on the Market reading of 67 days both indicate another good year for Coachella Valley housing, comparable to 2017.
Seven cities (Cathedral City, Palm Springs Indian Wells, Rancho Mirage, Palm Desert, La Quinta and Indio) show higher three-month total sales compared to a year ago, two cities (Coachella and Thousand Palms) have the same sales and two cities (Bermuda Dunes and Desert Hot Springs) have lower sales.
As prices rise, sales of homes priced under $200k fell to 121 in November 2017 compared to 130 units in November 2016, due to the lack of supply in this price range. Sales of homes priced between $200k and $300k were almost identical year over year. However, homes priced from $300k to $400k rose from 137 per month to 163 per month, an increase of 19%. There were also consistently higher sales in homes priced from $500k up to $1M.
In terms of months of supply by price range, there was improvement in all price brackets. Market Watch felt that the Valley’s housing market is improving in all price ranges. They did point out that months of supply for homes priced over $1M was a little high at 14.8 months.
In terms of months of supply by city, the ratios improved in every city except Coachella and Desert Hot Springs. Market Watch noted that ten cities now have months of supply ratios equal or below six months, which Market Watch felt is very positive.
Produced for Coachella Valley real estate agents through the sponsorship and cooperation of the Palm Springs Regional Association of Realtors® (PSRAR) and the California Desert Association of Realtors® (CDAR) by Market Watch LLC.