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Local real estate market experts Market Watch LLC have just released their November Desert Housing Report. Some highlights:

The Coachella Valley detached home median price in November was $527,000 (an increase of 27% year-over-year).

The Coachella Valley attached home median price in November was $315,000 (up 14.5% year-over-year). Market Watch stated that attached home median prices are following the positive trend of increasing detached home median prices.

Detached home median prices increases year-over-year in all nine Coachella Valley cities studied ranged from of 37.4% in La Quinta, 27.5% in Palm Springs, 21% in Palm Desert and 19.9% in Cathedral City down to an increase of 2.6% in Indian Wells. Palm Springs remains the only Coachella Valley city where the detached home median price exceeds the 2006-2007 previous high median price (up 38.1% from the 2006-2007 detached home median price). Attached home median prices increases year-over-year in eight of the nine Coachella Valley cities studied ranged from 16.1% in Palm Springs, 14% in Indian Wells, 13.4% in Rancho Mirage and 11.4% in La Quinta down to a decrease of 12.3% in Indio).

Coachella Valley detached home sales averaged 777 sales per month in November (up 56.3% from 497 sales per month in November 2019). Attached home sales averaged 333 units per month in November (up 66.5% from 200 sales per month in November 2019). Market Watch commented that these sales figures were amazing given that they occurred during the time of year when Coachella Valley home sales are typically lower than at other times of the year.

Average three-month home sales increased in nine of the 11 Coachella Valley cities studied. In particular, home sales increased year-over-year by 147.4% in Indian Wells, 81.8% in Rancho Mirage, 73.4% in La Quinta, 72.9% in Palm Desert and 70.6% in Palm Springs. Home sales in the job oriented communities of Cathedral City and Indio increased year-over-year but by smaller percentages and decreased slightly in Desert Hot Springs and Coachella.

The largest increases in home sales occurred in homes priced over $500,000. However, the largest sales increase by far occurred in homes priced over $1 million (at 121 home sales per month, up 168.8% year-over-year).

Coachella Valley housing inventory stood at 1,830 homes on December 1st (down 42.6% year-over-year). Market Watch noted that based on past trends, listings normally would have been increasing over the last two months. The fact that this hasn’t happened this year lead Market Watch to forecast continued tight inventories moving into the new year and new selling season.

Market Watch explained that the months of sales ratio (inventory divided by the sales rate) measures how many months it would take to sell off the entire housing inventory at the current sales rate and is the most accurate indicator of supply versus demand that real estate markets have. At 2.1 months, Market Watch noted that the current months of sales ratio is the lowest in Coachella Valley history (almost 50% less than one year ago). They felt that this indicates demand currently far exceeds supply, which should result in a continuation of higher prices. The median value of days in the market in November was 38 days (compared to 55 days one year ago).

The months of sales ratio was lower in every price bracket than one year ago, but especially so in the higher price brackets. Market Watch noted that months of sales ratios in all price ranges up to the $900,000 to $1,000,000 range were running around two months. Only in the case of homes priced over $1 million did the ratio rise (to 5.1 months). Market Watch commented that this shows that the Coachella Valley housing market is strong in all price ranges, but particularly in the higher price ranges.

 

On December 1st, the months of sales ratio was equal to or less than four months in all of the Coachella Valley eleven cities studied. Five cities (Coachella, Palm Springs, Indio, Cathedral City and Desert Hot Springs) had months of sales ratios under 2 months. Market Watch noted that La Quinta, Rancho Mirage and Indian Wells all had declines of over 50% in their months of sales ratios year-over-year.

The November median sale price discount from list was -0.46% which implies that an average house offered at $500,000 sold for $497,700. Market Watch pointed out that one of every four sales are now selling for more than their asking price.

 

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