Our local residential real estate market experts, Market Watch LLC, have recently released their November 2024 Desert Housing Report. Some of the highlights include:
COACHELLA VALLEY NOVEMBER HOME SALES RECOVERY CHART: Market Watch noted that in November Coachella Valley home sales averaged 32.1% below normal (where normal represented average November homes sales during the pre-pandemic years, 2016, 2017, 2018 and 2019). Market Watch noted that this indicated that Coachella Valley home sales had not increased with expected lower mortgage rates.
COACHELLA VALLEY NOVEMBER DETACHED HOME MEDIAN PRICE: The median price of a detached home in the Coachella Valley in November increased for the first time in six months to $650,000 (up $15,000 or 2.4% from $635,000 in November 2023). Market Watch commented that the detached home median price usually hits its seasonal low between November and December and that they expect to begin to see some seasonal price support entering 2025.
COACHELLA VALLEY NOVEMBER ATTACHED HOME MEDIAN PRICE: The median price of an attached home in the Coachella Valley in November was $447,000 (down $8,000 or 1.8% from $455,000 in November 2023). Market Watch commented that attached home median prices seem to be following their normal seasonal pattern. If they continued to do so, Market Watch noted that attached home median prices should also begin their year-end seasonal recovery.
COACHELLA VALLEY NOVEMBER PRICE OF THE AVERAGE SIZE HOME BY CITY: Year-over-year detached home median price changes in November in the Coachella Valley ranged from an increase of 11% for the 1,700 sq ft average size detached home in Coachella to a decrease of 7.6% for the 2,200 sq ft average size detached home in La Quinta. Year-over-year, detached home median prices increased in November in 7 of 10 Coachella Valley cities surveyed. Year-over-year attached home median price changes in November in the Coachella Valley ranged from an increase of 15.4% for the 750 sq ft average size attached home in Desert Hot Springs to a decrease of 3.4% for the 1,050 sq ft average size attached home in Indio. Year-over-year, attached home median prices increased in November in 4 of 9 Coachella Valley cities surveyed.
COACHELLA VALLEY NOVEMBER MONTHLY HOME SALES (3 MONTH AVG): The three-month average of Coachella Valley home sales in November was 472 homes (down 5 homes or 1% from 477 home sales in November 2023). Market Watch commented that because of seasonality in the Coachella Valley’s home sales data, it was difficult to determine where Coachella Valley home sales stood on a historical basis. However, the Sales Recovery Chart showed earlier that Coachella Valley home sales in November were below normal by 32.1%.
COACHELLA VALLEY NOVEMBER MONTHLY HOME SALES (12 MONTH AVG): The 12-month average of Coachella Valley home sales in November was 603 homes (roughly the same as in November 2023). This long-term average of monthly home sales, which takes out seasonality from the data, has been hovering around 600 home sales per month for almost two years. Market Watch noted that while the Federal Reserve Board has finally begun to lower short term interest rates, this hasn’t done much to lower longer term mortgage rates.
COACHELLA VALLEY NOVEMBER AVERAGE MONTHLY HOME SALES BY CITY: In November, average monthly homes sales by city ranged from a high of 102 home sales in Palm Desert (up from 95 home sales in November 2023) to 8 home sales in Indian Wells (down from 14 home sales in November 2023). Average monthly home sales by city also increased year-over-year in Palm Springs (97 home sales in November, up from 96 home sales in November 2023), La Quinta (68 homes sales in November, up from 62 home sales in November 2023), Cathedral City (38 home sales in November, up from 36 home sales in November 2023) and Bermuda Dunes (8 home sales in November, up from 6 home sales in November 2023).
COACHELLA VALLEY NOVEMBER AVERAGE MONTHLY HOME SALES BY PRICE RANGE: The largest part of the overall home sales decline in the Coachella Valley in November continued to be sales of homes in three price ranges: (a) homes priced from $300K to $399K (53 average monthly home sales in November, down from 62 home sales in November 2023), (b) homes priced between $400K to $499K (76 average monthly home sales in November, down from 89 home sales in November 2023), and (c) homes priced between $1M and $1.999M (66 average monthly home sales in November, down from 75 home sales in November 2023).
COACHELLA VALLEY NOVEMBER AVERAGE MONTHLY HOME SALES IN DOLLARS: Average monthly home sales in November in the Coachella Valley were $365 million (down 3.4% from $378 million average monthly home sales in November 2023).
COACHELLA VALLEY NOVEMBER AVERAGE MONTHLY HOME SALES IN DOLLARS BY CITY: Average monthly home sales by city ranged from a high of $74M in Palm Springs to a low of$5M in Coachella. Average monthly home sales in dollars appeared to be comparable to last year in every city except Rancho Mirage (with average monthly home sales of $49M, down 14% from home sales of $57M in November 2023), Indian Wells (with average monthly home sales of $17M, down 26.1% from home sales of $23M in November 2023 and Coachella (with average monthly home sales of $5M, down 37.5% from average monthly home sales of $8M in November 2023).
COACHELLA VALLEY NOVEMBER AVERAGE MONTHLY HOME SALES IN DOLLARS BY PRICE RANGE: Average monthly home sales in November in the Coachella Valley increased for: (a) homes priced between $500K-$599K (44 average monthly home sales in November, up 4.7% from 42 average monthly home sales in November 2023), (b) homes priced between $600K-$699K (37 average monthly home sales in November, up 15.6% from 32 average monthly home sales in November 2023), (c) homes priced between $700K-$799K (33 average monthly home sales in November, up 17.9% from 28 average monthly home sales in November 2023), and (d) homes priced between $800K-$899K (25 average monthly home sales in November, up 47.1% from 17 average monthly home sales in November 2023).
COACHELLA VALLEY DECEMBER 1ST HOME SALE INVENTORY: On December 1st, Coachella Valley home sale inventory was 3,187 homes (up 869 homes or 37.5% from 2,318 homes on December 1st, 2023). Market Watch commented that the typical seasonal pattern now suggests that inventory would continue to increase through February. Further, they noted that the current level was close to pre-pandemic normal levels for this time of year.
COACHELLA VALLEY DECEMBER 1ST HOME SALE INVENTORY BY CITY: The highest inventory level in the Coachella Valley on December 1st was in Palm Springs (703 homes, up 126 homes or 21.8% from 577 homes on December 1st, 2023). The lowest inventory level in the Coachella Valley on December 1st was in Coachella (24 homes, down 3 homes or 14.3% from 21 homes on December 1st, 2023).Market Watch noted that this data could help agents know what cities had homeowners with the greatest selling interest and how it compared to last year.
COACHELLA VALLEY DECEMBER 1ST HOME SALE INVENTORY BY PRICE RANGE: The highest inventory level was for homes priced between $1M and $1.999M (594 homes, up 140 homes or 30.8% from 454 homes on December 1st, 2023). The lowest inventory level was for homes priced under $300K (140 homes, up 36 homes or 34.6% from 104 homes on December 1st, 2023). Market Watch noted that this data could help locate what price brackets might be responsible for the growth or contraction of inventory.
COACHELLA VALLEY DECEMBER 1ST MONTHS OF SALES RATIO: On December 1st , the Coachella Valley’s months of sales ratio was 5.3 months (up 1.5 months or 39.5% from 3.8 months on November 1st, 2023). Market Watch commented that this fundamental ratio, which measures supply and demand, was now back to pre-pandemic levels. Even though inventory was back to normal, home sales were lower than average, which resulted in the months of sales ratio increasing. Market Watch further noted that the months of sales ratio is moving in the direction of supply exceeding demand.
COACHELLA VALLEY DECEMBER 1ST MONTHS OF SALES RATIO BY CITY: Market Watch noted that the months of sales ratio was between 5.5 and 7 months in six of the ten Coachella Valley cities surveyed. The lowest months of sales ratio was in Coachella (2.7 months, up from 1.2 months on December 1st, 2023). The highest months of sales ratio was in Indian Wells (15.3 months, the same as on December 1st, 2023). Market Watch stated that since months of sales was really the supply-demand equation for housing, it showed that the housing market may begin to experience longer selling times and ultimately some downward pricing pressures in the higher priced cities.
COACHELLA VALLEY DECEMBER 1ST MONTHS OF SALES RATIO BY PRICE RANGE: The months of sales ration by price range varied from a low of 4.3 months (up from 3.3 months on December 1st, 2023) for homes priced under $300K to 16.3 months (up from 10.9 months on December 1st, 2023) for homes priced over $2M. Market Watch stated that since months of sales is really the supply-demand equation for housing, the large increases over last year shows the supply side of the market is increasing in all price ranges.
COACHELLA VALLEY NOVEMBER DAYS IN THE MARKET: At the end of November, the median number of days in the market in the Coachella Valley was 43 days (up 7 days from 36 days in November 2023). Market Watch noted that the median selling time in the Coachella Valley dropped for the second time in nine months. They noted that this is good for home prices as homeowners will maintain their listing price if homes are selling quickly.
COACHELLA VALLEY NOVEMBER DAYS IN THE MARKET BY CITY: In November, Desert Hot Springs had the lowest average selling time in the Coachella Valley at 34 days (the same as in November 2023). This was followed by Indian Wells at 35 days (down from 37 days in November 2023) and Indio at 41 days (up from 35 days in November 2023). In November, Rancho Mirage had the highest median selling time at 53 days.
COACHELLA VALLEY NOVEMBER DAYS IN THE MARKET BY PRICE RANGE: In November, the lowest average selling time in the Coachella Valley was 32 days for homes priced over $2M. The highest average selling time in November in the Coachella Valley was for homes priced between $900K and $999K (58 days). Market Watch did note that usually, selling times increase with higher priced homes. However, in the current Coachella Valley market, they weren’t seeing this which they felt was a positive feature for higher priced homes.
COACHELLA VALLEY NOVEMBER AVERAGE HOME SALE PRICE PREMIUM/DISCOUNT: In November, in the Coachella Valley, detached homes were selling at an average discount of 2.1% (the same as in November October 2023). In November, in the Coachella Valley, attached homes were selling at an average 2.6% discount (up from a discount of 2.5% in November 2023). Market Watch pointed out how the premium/discount numbers for both detached and attached homes, which are normally close, were starting to separate and that these numbers were now back close to pre-pandemic levels.
COACHELLA VALLEY NOVEMBER AVERAGE HOME SALE PRICE DISCOUNT BY CITY: Average home sales discounts in the Coachella Valley in November ranged from a low of 1.4% in Coachella to a high of 3.4% in Rancho Mirage.
COACHELLA VALLEY NOVEMBER AVERAGE HOME SALE PRICE DISCOUNT BY PRICE RANGE: Average home sales discounts in the Coachella Valley in November ranged from a low of 1.5% for both homes priced between $500K and $599K and homes priced between $800K and $899K to a high of 5.2% for homes priced over $2M. Market Watch noted that as a rule, price discounts increase with higher priced homes, however the current data showed the lowest discounts in the mid range price ranges.
COACHELLA VALLEY NOVEMBER AVERAGE PERCENTAGE OF HOMES SELLING OVER LIST PRICE: In November, in the Coachella Valley, 15% of homes sold over list price (down from 15.5% in November 2023). Market Watch continued to expect the number of homes selling above list price to remain about one out of seven.
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