Local real estate market experts, Market Watch LLC have just released their September 2021 Desert Housing Report. Some highlights:
Coachella Valley Detached Home Median Price: The Coachella Valley detached home median price in September was $585,000 (up 14.7% from the detached home median price of $510,000 in September 2020). Market Watch noted that because of the median home price increases that occurred through most of the latter part of last year, year-over-year price median home price comparisons should begin to moderate. They also stated that they believe that the major housing metrics have started the slow process of returning to more normal levels.
Coachella Valley Attached Home Median Price: The Coachella Valley attached home median price in September was $375,000 (up almost 23% from the attached home median price of $305,000 in September 2020). Market Watch noted that attached homes have been filling the supply void for detached homes at lower price points. They also noted that attached home prices are just beginning to show the seasonal slowdown that historically has occurred during late summer in the Coachella Valley.
Year-Over-Year Change in Detached Home Median Prices By City: In every city in the Coachella Valley (other than La Quinta), the detached home median price increased year-over-year in September by more than 20%. The largest increase in detached home median prices occurred in Indian Wells (up 42.8% year-over-year), followed by Indio (up 32.2% year-over-year) and Palm Springs (up 29.7% year-over-year). In every city other than Rancho Mirage, the September detached home median price exceeded the previous detached home median price highs reached in 2006.
Year-Over-Year Change in Attached Home Median Prices By City: In every city in the Coachella Valley (other than Indio, Palm Springs, Coachella and Desert Hot Springs), the attached home median price increased year-over-year in September by more than 20%. The largest increase in attached home median prices occurred in Indian Wells (up 32.2% year-over-year) followed by La Quinta (up 30.1% year-over-year), Palm Desert (up 28.4% year-over-year) and Rancho Mirage (up 25.1% year-over-year). Only in Indian Wells did the September attached home median price exceed the previous attached home median price high reached in 2006 (by 2.7%).
Monthly Sales - 3-Month Trailing Average: Market Watch pointed out that the 3 month average total home sales in September were 860 home sales per month (compared to 1,077 home sales per month in September 2020). However, these sales were still higher than the average September home sales in the three pre-pandemic years before September 2020 (815 homes sales in September 2019, 780 home sales in September 2018 and 758 home sales in September 2017).
Monthly Sales - 12-Month Trailing Average: The 12-month average of home sales, which takes out all seasonality, shows total home sales in September averaging 1,076 home sales per month. Market Watch noted that this long-term sales measurement clearly showed that home sales were still above past norms but were beginning to decrease (and more so in the case of detached homes than in the case of attached homes). Market Watch stated that while they expected long term home sales averages to continue to pull back, they expected them to stay above past norms.
Home Sales by City: Market Watch noted that the home sales by city numbers showed the overall home sales slowdown throughout the Coachella Valley. The 3-month sales averages in September were below September 2020 levels in Bermuda Dunes, Coachella, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs and Rancho Mirage. Home sales increased or were the same in September when compared to September 2020 in Desert Hot Springs, Cathedral City and Thousand Palms.
Home Sales by Price Range: Market Watch noted that average home sales in September in almost all price ranges over $500,000 were either roughly equal to or above average home sales in September 2020. On the other hand, home sales in all price ranges under $400,000 decreased significantly (due to in large part to low inventory levels in this price ranges).
Coachella Valley Total Home Inventory: On October 1st total home inventory in the Coachella Valley was 883 homes (compared to 1,995 homes one year ago). Market Watch noted that this lack of inventory continues to be the overall force driving home prices higher. They wondered if inventory would follow the typical seasonal pattern of increasing from October to March (and if so by how much).
Regional Months of Sales Ratio: The median value for the months of sales ratio throughout the Coachella Valley on October 1st was 8/10ths of a month (compared to 2.5 months on October 1st, 2020). Market Watch stated that these low months of sales ratios (which measure the balance of supply and demand) are the reason that they do now foresee any significant price declines after last year’s price surge.
Months of Sales by Price Range: Market Watched stated that months of sales by price range numbers in September continued to show that the historically low months of sales ratios in the Coachella Valley were found in all price ranges (with months of sales ratios at or below 1.4 in all price ranges). This is especially true in the higher price brackets, where the months of sales ratio in the $800,000 to $900,000 price range decreased by 64.3% year-over-year, the months of sales ratios in the $900,000 to $1,000,000 decreased by 63.6% year-over-year and the months of sales ratio in the over $1,000,000 price range decreased by 76.7% year-over-year.
Months of Sales by City: Market Watch stated that record low months of sales ratios were found in every Coachella Valley city other than Desert Hot Springs. Market Watch expressed that they were especially impressed by the low months of sales ratios in Palm Springs (0. 7 months) and Rancho Mirage (0.8 months) because these are two very high-priced cities that would normally have much higher ratios.
Regional Days in the Market: The median value of days in the market throughout the Coachella Valley is now at 25 days (compared to 57 days in September 2020). Market Watch explained that as demand continues to exceed supply, the average time period to sell a home continues to decline. They thought that selling times will stay near current levels while supply and demand slowly return to more normal levels in the coming months.
Days in the Market for Detached and Attached Homes By City: In September, both Cathedral City and Desert Hot Springs experienced the lowest number of days in the market for detached homes at 20 days, closely followed by Palm Springs at 21 days. In the attached home market, Desert Hot Springs had the lowest median days in the market at 13 days followed by Palm Springs at 17days.
Regional Sale Price Discount from List: The median value for Sale Discount from List for detached homes in September was again 0.0% (the same as it’s been for the last seven months and compared to -1.4% in September 2020). Market Watch explained that since so many homes are selling right at list price, the median value of the discount for all sales is exactly 0.0%. Market Watch noted that the average sale price discount from list for detached homes, which averages the price discount of every sale, is 1.8% (meaning that the average home is selling 1.8% above list price).
Average Sale Price Discounts from List for Detached and Attached Homes By City: In September, detached homes in Palm Springs were on average selling at a premium of 2.4% above list price, followed by sales of detached homes in Desert Hot Springs on average at a premium of 2.3% above list price and sales of detached homes in Indio on average at a premium of 1.9% above list price. In the attached home markets, in September attached homes in Cathedral City were on average selling at a premium of 3.3% above list price, while in Palm Springs sales of attached homes were on average selling at a premium of 2.9% above list price.
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