Feb. 6, 2023
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Local real estate market experts, Market Watch LLC, have just released their January 2023 Desert Housing Report. Here are some highlights:
COACHELLA VALLEY DETACHED HOME MEDIAN PRICE: In January, the Coachella Valley detached home median price was $650,000 (up 5.7% year-over-year from $615,000 in January 2022 and up 1.6% or $10,000 from December). Market Watch noted that this detached home median price was 8.5% below the peak price of $710,000 reached six months ago. They also noted that the increase in the detached home median price from December was somewhat expected since home prices typically begin their seasonal rise around January.
COACHELLA VALLEY ATTCHED HOME MEDIAN PRICE: The Coachella Valley attached home median price in January was $440,000 (up 3.5% year-over-year from $425,000 in January 2022 and unchanged from December). Market Watch noted that this attached home median price was 10.4% below the peak price of $491,056 reached in May 2022. Market Watch also noted that seasonally driven attached home price increases normally begin in December or January, and they are interested to see if this pattern continuer this year.
TWELVE MONTH CHANGE IN THE PRICE OF THE AVERAGE SIZE HOME BY CITY: There were double digit price increases for average size homes year-over-year in Coachella (up 16.2% year-over-year for the city’s 1,700 sq ft average size detached home), Rancho Mirage (up 13.2% year-over-year for the city’s 3,175 sq ft average size detached home), Cathedral City (up 12.7% year-over-year for the city’s 1,800 sq ft average size detached home), La Quinta (up 11.4% year-over-year for the city’s 2,550 sq ft average size detached home) and Indian Wells (up 10.4% year-over-year for the city’s 3,450 sq ft average size detached home). The only city with a decrease in the price of the city’s average size detached home was Palm Springs (down 1.3% year-over-year for the city’s 2,200 sq ft average size detached home). For attached homes, increases year-over-year in prices for average size homes ranged from 26.3% in Desert Hot Springs for the city’s 750 sq ft average size attached home to 1.9% in Indio for the city’s 1,050 sq ft attached home.
MONTHLY COACHELLA VALLEY HOME SALES – THREE MONTH TRAILING AVERAGE: Home sales in the Coachella Valley continued to decline in January to 413 home sales per month (down 52.2% year-over-year from 864 homes sales per month in January 2022). Market Watch commented that pre-pandemic January home sales averaged 700 home sales per month (so current January home sales are 41% below average). Market Watch did note that historically, Desert home sales usually begin to rise at this time of the year.
MONTHLY COACHELLA VALLEY HOME SALES – TWELVE MONTH TRAILING AVERAGE: In January, the 12-month average of Coachella Valley home sales (which takes out seasonality) was 680 home sales per month (down 32% year-over-year from 1,005 home sales in January 2022). Market Watch commented that this is also the 18th consecutive month of a decrease in monthly home sales. Market Watch noted that long term sales are now roughly 15% below pre-pandemic average monthly home sales and since long-term sales lag short term sales, this metric should continue to decline for a while even if monthly home sales begin to increase.
COACHELLA VALLEY HOME SALES BY CITY: In January, every Coachella Valley city had considerably lower sales compared to a year ago. The largest percentage sales decreases in January were in La Quinta (down 57.6% year-over-year), Indio (down 57% year-over-year) and Rancho Mirage (down 54.3% year-over-year). The smallest percentage decreases in home sales were in Coachella (down 4% year-over-year) and Indian Wells (down 33.3% year-over-year).
COACHELLA VALLEY HOME SALES BY PRICE RANGE: Home sales decreased year-over-year in every price range in January. However, the largest decreases were in homes priced between $400,000 and $700,000. Market Watch noted that home sales in the higher price ranges, which initially resisted the sales decreases, showed sales considerably below last year. For example, in January sales of million-dollar plus homes were down 67.1% year-over year and sales of homes priced between $900,000 and $1,000,000 were down 73.7% year-over-year.
COACHELLA VALLEY HOME SALE INVENTORY: On February 1st, Coachella Valley home sale inventory was 2,025 homes (up 6% from 1,911 homes in December and up 239.8% or 1,429 homes year-over-year from 596 homes on February 1st 2022). Market Watch felt that some of the inventory gain over the last few months was seasonal but this factor was less than previous years. Market Watch had hoped that inventory might possibly reach 2,500 units by the end of February or March, but they don’t think that will happen now. They stated that the primary reason inventory is not growing is that, while sales are limited, new listings also remain very muted.
COACHELLA VALLEY REGIONAL MONTHS OF SALES RATIO: On February 1st, the Coachella Valley’s months of sales ratio was 3.1 months (up from 2.7 months on January 1st and the highest months of sales ratio since the summer of 2020). Market Watch explained that the February 1st months of sales ratio, which measures supply versus demand, as below its historic average for this time of year. To Market Watch, this meant that while sales are down, there is still a good balance between buyers and sellers (unlike during the housing crisis in 2009-10).
COACHELLA VALLEY MONTHS OF SALE RATIOS BY PRICE RANGE: On February 1st, the months of sales ratios in every price range continued to far exceed year ago levels. Market Watch pointed out that the months of sales ratios showed the normal pattern of higher months of sales ratios for higher priced homes.
COACHELLA VALLEY MONTHS OF SALES RATIOS BY CITY: On February 1st, months of sales ratios ranged from 2.6 months in Indian Wells to 3.4 months in Rancho Mirage. Market Watch noted that four cities had ratios of three months or over (Cathedral City, Thousand Palms, La Quinta and Rancho Mirage). The February 1st months of sales ratios were below 3 months in the other Coachella Valley cities.
COACHELLA VALLEY DAYS IN THE MARKET: Market Watch pointed out that the average selling time in the Coachella Valley continues to increase. At the end of January, the median number of days in the market throughout the Coachella Valley was 41 days (up 12 days year-over-year). Market Watch expects this metric to be back to 50 or 60 days relatively soon.
COACHELLA VALLEY DAYS IN THE MARKET BY CITY: In January, Palm Springs had the shortest median selling time for detached homes at 28 days, followed by Bermuda Dunes at 34 days. The longest median selling time for detached homes in January was in Rancho Mirage at 65 days. For attached homes, in January, Desert Hot Springs had the shortest median selling time at 24 days, followed by Bermuda Dunes at 29 days. The longest median selling time for attached homes in January was in Indio at 65 days.
COACHELLA VALLEY PERCENTAGE OF HOMES SELLING OVER LIST PRICE: In January, only 13.5% of home sales occurred above list price (compared to 42.6% in January 2022). Market Watch felt that the percentage of homes selling over list price was gradually returning to its historic norm of around 10%.
COACHELLA VALLEY AVERAGE PRICE DISCOUNTS BY CITY: In January, every Coachella Valley city had an average selling discount for detached homes, ranging from -0.1% in Coachella to -4.2% in Indian Wells. For attached homes, in January average selling discounts ranged from -0.2% in Bermuda Dunes to -7.7% in Indio.
The Briggs Group | Coldwell Banker Realty || Laurie Briggs DRE 01896117 | Tim Briggs DRE 01898254 | Coldwell Banker Realty DRE 00616212