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Local real estate experts, Market Watch LLC have just released their COVID-19 Desert Real Estate Report, looking at the impact of the Covid-19 pandemic on the Coachella Valley residential real estate market. Some highlights:
To show how the Coachella Valley housing market is doing compared to other Southern California regions, Market Watch looks at closed and pending sales in Los Angeles and Orange Counties. With average escrow times in these two counties of between 30 to 35 days, moving pending and active under contract sales forward by 35 days is a forecasting tool for closed sales. Daily pending and active under contract sales averaged 192 homes per day in November in LA County (up 33% year-over-year) while daily closed sales averaged 198 homes per day (up almost 39% year-over-year). Market Watch predicted that pending sales in LA County will remain around 200 homes per day for the next five weeks.
In November, Orange County continued to show an almost identical recovery pattern to LA County except that Market Watch felt that both sales curves were beginning to bend down slightly. Average daily pending and active under contract sales of 91 homes per day were up 30% year-over-year while average daily closed sales of 99 homes per day were up 41% year-over-year. Market Watch noted that there has been no sign of a reversal in the post quarantine sales surge.
In the Coachella Valley, with escrow times for detached homes averaging 20 days, pending and active under contract sales are moved forward 20 days to predict closed sales. Average daily pending and active under contract sales of single-family residences in November were 24 homes per day (up 41% year-over-year). Market Watch noted that there was no sign of a falloff in the surge of home sales that began in the Coachella Valley five months ago.
Average daily pending sales of condos of 10.6 homes per day were up 49% year-over-year while average daily closed sales of 11.5 homes per day were up 88% year-over-year.
The largest year-over-year increases in average weekly pending sales of single-family residences were in Indian Wells (up 184.6%), Cathedral City (up 46.2%), Indio and Rancho Mirage (both up 55.8%) and Cathedral City (up 46.2%). The largest year-over-year increases in average weekly pending sales of condos were in Indian Wells (up 200%), Palm Desert (up 74.2%), La Quinta (up 68.2%) and Rancho Mirage (up 52.9%).
The average Coachella Valley single family detached square foot home price in November was $284 (up 16.4% year-over-year). The average attached home square foot price was $230 (up 9.5% year-over-year).
The average square foot price for single-family residences in November increased year-over-year by 30.9% in Palm Springs, 30% in Coachella, 29.1% in Cathedral City and 25.1% in Indian Wells. The average square foot price for condos in November increased year-over-year by 14.1% in Palm Desert, 12.1% in Indian Wells and 11.3% in Rancho Mirage.
The total Coachella Valley for sale housing inventory on December1st was 1,822 homes (dropping almost 200 homes from the average inventory of 2,000 homes over the last four months and dropping 39.7% year-over-year). Market Watch noted that this decline in inventory is the primary reason why home prices have been surging this year. Also, higher prices do not seem to be bringing out more inventory, which they felt bodes well for continued higher home prices.
The average daily number of new listings in November was 35 homes (an increase of 29.6% year-over-year). The fact that inventory has been dropping shows that this rate of new listings is not keeping up with the rate of purchase. Market Watch noted that the Coachella valley market is now entering it’s normal slow period (from Thanksgiving to the first couple of weeks of January), a trend that they expect to continue this year.
The average number of days in the market for single-family homes in November was 54 days compared to 70 days in November 2019. The average number of days in the market for condos dropped one day from 66 days in November 2019 to 65 days this past November.
Lastly, the current average selling price discounts from list price in November were 1.1% for single-family detached homes and 2.4% for condos.
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