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Our local housing market experts, Market Watch LLC, have just released their November 2023 Desert Housing Report. Some of the highlights:

COACHELLA VALLEY NOVEMBER SALES RECOVERY: In November, Coachella Valley home sales were 30.6% below historic November norms (calculated from November home sales in the pre-pandemic years 2016, 2017, 2018 and 2019). Market Watch noted that this decrease in home sales was almost entirely due to high interest rates as well as market absorption of the accelerated demand created by low interest rates during Covid. They believe that both are coming to an end and home sales will soon return to normal. 

COACHELLA VALLEY NOVEMBER DETACHED HOME MEDIAN PRICE: The median price of a detached home in the Coachella Valley at the end of November was $635,000 (down 1.6% from $645,000 in November 2022). Market Watch felt that the detached home median price decline since June has been primarily seasonal. They felt that the historical normal seasonal pattern of home prices increasing beginning in November will re-appear. Further they pointed out that with inventory rising and home sales remaining low, supply and demand is beginning to slowly favor buyers.

COACHELLA VALLEY NOVEMBER ATTACHED HOME MEDIAN PRICE: The median attached price of an attached home in the Coachella Valley was $457,000 (up 2.7% from $445,000 in November 2022). Market Watch felt that if the normal historical seasonal pattern in attached home median prices were to re-appear, attached home prices should increase moving into the new year.

NOVEMBER TWELVE MONTH CHANGE IN THE PRICE OF THE AVERAGE SIZE HOME BY CITY: In November, year over year price changes for detached homes varied widely, ranging from an increase of 11.8% for the 2,550 sq ft average size detached home in La Quinta to a decrease of 12% for the 1,700 sq ft average size detached home in Coachella. In November, prices for attached homes increased year-over-year in 6 cities (Indio, Rancho Mirage, Indian Wells, Bermuda Dunes, Palm Desert and Cathedral City). Overall, year-over-year attached home price changes ranged from an increase of 10.8% for the 1,050 sq ft average size attached home in Indio to a decrease of 10.0% for the average size 750 sq ft attached home in Desert Hot Springs.

COACHELLA VALLEY NOVEMBER MONTHLY HOME SALES - THREE MONTH TRAILING AVERAGE:. The three-month average of Coachella Valley home sales in November was 480 homes (down 20 homes or 4.0% year-over-year). Because of seasonality in our home market, Market Watch felt that it was difficult to determine where home sales stand on a historical basis. They noted that e sales recovery chart indicated that November home sales were averaging 30.6% below normal.

COACHELLA VALLEY NOVEMBER MONTHLY HOME SALES - TWELVE MONTH TRAILING AVERAGE: The 12-month average of Coachella Valley home sales, which takes out seasonality from home sales data, shows total home sales in November averaged 602 homes per month (down 22% from 770 home sales per month in November 2022). Market Watch noted that while the long term average of monthly home sales has been leveling out over the last 7 months, they don’t expect home sales to fully recover until mortgage rates come down to the 5.5% level from their current level of 7.5%.

COACHELLA VALLEY NOVEMBER MONTHLY HOME SALES BY CITY: In November, home sales decreased year-over-year in every Coachella Valley city other than Coachella, Desert Hot Springs, Rancho Mirage and Thousand Palms. The largest percentage increase in monthly home sales in November was 23% in Rancho Mirage. The largest percentage decreases in monthly home sales in November were in Indio (down 23% year-over-year) and Cathedral City (down 12% year-over-year).

COACHELLA VALLEY NOVEMBER MONTHLY HOME SALES BY PRICE RANGE: November Coachella Valley home sales were generally about the same as a year ago in most price brackets except those from $600k-than one year ago by over 14%. Sales of homes priced under $500k in November were almost identical to last year.

COACHELLA VALLEY DECEMBER 1ST TOTAL HOME SALE INVENTORY: The total Coachella Valley home sale inventory on December 1st was 2,260 homes (an increase of 120 homes or 5.6% from 2,140 homes on December 1st, 2022). Market Watch noted that this is the highest inventory since the start of the pandemic in early 2020. They stated that most of this increase in inventory was seasonal, caused by the higher than-normal number of new listings that typically occur at this time of year. However, they cautioned that this inventory level was still 1,000 homes or more less than what’s normal at this time of year (compared to a pre-pandemic inventory level of 3,555 homes on December 1st, 2018 and 3,187 homes on December 1st, 2019). They expect the seasonal increase in inventory to continue for the next three or four months, possibly reaching a high of 2,500 homes.

COACHELLA VALLEY DECEMBER 1ST REGIONAL MONTHS OF SALES RATIO: On December 1st, the Coachella Valley’s months of sales ratio was 3.8 months (compared to 2.8 months on December 1st, 2022). Market Watch explained that this fundamental ratio measures supply and demand is now back to a more normal level. While inventory is below normal, Market Watch noted that home sales are also below normal, with the combination of these two factors producing a somewhat normal months of sales ratio.

COACHELLA VALLEY DECEMBER 1ST MONTHS OF SALES RATIOS BY PRICE RANGE: On December 1st, the Coachella Valley months of sales ratio was over 3 months in every price range over $500k. Market Watch felt that while the months of sales ratio for homes priced over one million dollars was 5.6 months, it was still historically less than pre-pandemic normals.

COACHELLA VALLEY DECEMBER 1ST MONTHS OF SALES RATIOS BY CITY: The months of sales ratios were both above months and higher than the ratios one year ago in every Coachella Valley city other than Coachella. Market Watch felt that this indicated that supply and demand were pretty much balanced throughout the Coachella Valley.

COACHELLA VALLEY NOVEMBER REGIONAL DAYS IN THE MARKET: At the end of November, the median number of days in the market in the Coachella Valley was 36 days (one day less than last month and one day more than one year ago). Market Watch felt that the median selling time in the Coachella Valley will remain around current levels over the next six months.

COACHELLA VALLEY NOVEMBER DAYS IN THE MARKET BY CITY AND HOUSE TYPE: In November, Coachella had the shortest median selling time for detached homes at 25 days, followed by Desert Hot Springs at 31 days and Indian Wells at 32 days. The longest median selling time in November for detached homes was in Bermuda Dunes at 66 days. In November, Indio had the shortest median selling time for attached homes at 26 days, followed by Desert Hot Springs at 28 days and Palm Springs at 29 days. The longest median selling time in November for attached homes was in Rancho Mirage at 56 days.

PERCENTAGE OF HOMES IN THE COAHELLA VALLEY IN NOVEMBER SELLING OVER LIST PRICE: In November, 15.9% of homes sold in the Coachella Valley sold above list price (compared to 17.5% one year ago). Market Watch stated that they expect the percentage of homes selling at a premium to remain around 16% (one out of every six sales) for the foreseeable future.

NOVEMBER AVERAGE PRICE DISCOUNTS FROM LIST BY CITY: In November, every city in the Coachella Valley continued with an average selling discount for detached homes, ranging from -0.9% in Coachella to 5.7% in Bermuda Dunes. Discounts for attached homes in November ranged from -0.4% in Bermuda Dunes to 3.4% in La Quinta.

The Briggs Group / Coldwell Banker Realty | Laurie Briggs DRE 01896117 | Tim Briggs DRE 01898254 | Coldwell Banker Realty DRE 00616212