Our local real estate market experts, Market Watch LLC, have just released their Desert Housing Report for September 2024. Some highlights:
SEPTEMBER COACHELLA VALLEY SALES RECOVERY FROM PRE-PANDEMIC NORM: In September, home sales in the Coachella Valley averaged 33.5% below pre-pandemic September norm (where the norm was calculated from Coachella September home sales over the years 2016, 2017, 2018 and 2019). Market Watch noted that the Coachella Valley’s sales recovery was approaching its lowest level, indicating that home sales hadn’t increased in September, even with lower mortgage rates.
SEPTEMBER COACHELLA VALLEY DETACHED HOME MEDIAN PRICE: In September, the median price of a detached home in the Coachella Valley declined again for the fifth consecutive month to $640,000 (up $3,750 or 0.59% from $636,250 in September 2023). Market Watch noted that the detached home median price in the Coachella Valley typically reaches its seasonal low between September and December. With both low inventory and very low home sales, Market Watch felt that home supply and demand in the Coachella Valley would remain relatively balanced.
SEPTEMBER COACHELA VALLEY ATTACHED HOME MEDIAN PRICE: In September, the median price of an attached home in the Coachella Valley was $436,500 (up $1,500 or 0.34% from $435,000 in September 2023). Market Watch noted that attached home median prices seemed to be following their normal seasonal pattern, which should result in the attached home median price reaching its seasonal low between now and the end of the year.
SEPTEMBER COACHELLA VALLEY TWELVE MONTH CHANGE IN THE PRICE OF THE AVERAGE SIZE HOME BY CITY: In September, year-over-year changes in the average prices for detached homes in the Coachella Valley ranged from an increase of +25.6% for the average size 3,450 sq ft detached home in Indian Wells to a decrease of -9.1% for the average size 2,173 sq ft detached home in Palm Springs. In September, year-over-year changes in the average prices for attached homes in the Coachella Valley ranged from an increase of +13.8% for the average size 1,450 sq ft attached home in Bermuda Dunes to a decrease of -10.9% for the average size 750 sq ft attached home in Desert Hot Springs.
SEPTEMBER COACHELLA VALLEY MONTHLY HOME SALES – THREE MONTH AVERAGE: In September in the Coachella Valley, home sales averaged 496 home sales per month (down 59 homes or 10.6% from 555 home sales in September 2023). Market Watch noted that because of the seasonality in Coachella Valley home sales, it was difficult to determine where sales stood on a historical basis. The added that the Sales Recovery data showed that Coachella Valley home sales were below pre-pandemic norms by 33.5%.
SEPTEMBER COACHELLA VALLEY MONTHLY HOME SALES – TWELVE MONTH AVERAGE: In September in the Coachella Valley, the 12-month average of monthly home sales (which removes seasonality from the data) was 600 home sales per month. Market Watch noted that this long-term home sales average was about the same as last year and has been hovering at roughly 600 home sales per month now for over a year. Further, they 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 fixed mortgage rates.
SEPTEMBER COACHELLA VALLEY MONTHLY HOME SALES BY CITY: Market Watch noted that monthly home sales were lower in most Coachella Valley cities than they were in September 2023. Palm Desert had the highest monthly home sales at 104 (compared with 107 home sales in September 2023), followed by Palm Springs with 92 monthly home sales (compared with 109 monthly home sales in September 2023). Only one city, La Quinta, with average monthly home sales of 70 in September, was higher than last year (compared with 67 monthly home sales in September 2023). 
SEPTEMBER COACHELLA VALLEY HOME SALES BY PRICE RANGE: Monthly home sales were the same or decreased in almost all price ranges across the Coachella Valley in September. The largest overall sales decline appeared to be sales of homes in two price brackets: (i) homes priced between $400K and $499K, with sales of 82 homes (down 19 homes or 18.8% from 101 homes in September 2023), and (ii) homes priced between $1M and $1.999M with sales of 67 homes (down 12 homes or 15.2% from 79 homes in September 2023).
SEPTEMBER COACHELLA VALLEY MONTHLY HOME SALES IN DOLLARS: In September, total home sales in the Coachella Valley were $373M (down $56M or 13.1% from sales of $429M in September 2023).
SEPTEMBER COACHELLA VALLEY HOME SALES IN DOLLARS BY CITY: In September, monthly home sales in dollars appeared to be comparable to September 2023 home sales in every city except La Quinta and Palm Springs. In La Quinta, September home sales were $72 M (down $8M or 10% from sales of $80M in September 2023). In Palm Springs, September home sales were $68M (down $21M or 23.6% from sales of $89M in September 2023).
SEPTEMBER COACHELLA VALLEY HOME SALES IN DOLLARS BY PRICE RANGE: In September, for homes priced between $1M and $1.999M September home sales were $90M (down $18M or 16.7% from sales of $108M in September 2023). For homes priced at or above $2M, September home sales were $61M (down $13M or 17.6% from sales of $74M in September 2023).
OCTOBER 1ST COACHELLA VALLEY HOME INVENTORY: On October 1st, the Coachella Valley home inventory was 2,421 homes (up 619 homes or 34.4% from 1,802 homes on October 1st, 2023). Market Watch stated that the usual seasonal pattern suggested that home inventory would begin an increase that would continue through February. While inventory had gradually improved, Market Watch felt that the current home inventory level continued to be about 1,000 units under what was normal at this time of year before the pandemic.
OCTOBER 1ST COACHELLA VALLEY HOME INVENTORY BY CITY: The highest home inventory level was in Palm Springs with 552 homes on October 1st (up 120 homes or 27.8% from 432 homes on October 1st, 2023). The lowest home inventory level was in Coachella with 25 homes (the same as on October 1st, 2023). Market Watch noted that this data could help agents know what cities have homeowners with the greatest selling interest and how it compares to last year.
OCTOBER 1ST COACHELLA VALLEY HOME INVENTORY BY PRICE RANGE:The highest home inventory level on October 1st was 411 homes for homes priced between $1M and $1.999M (up 71 homes or 20.9% from 340 homes on October 1st, 2023). The second highest home inventory level was 377 homes for homes priced between $500K and $599K (up 112 homes or 42.3% from 265 homes on October 1st, 2023). Market Watch commented that this data helps locate what price ranges might be responsible for the growth or contraction of home inventory.
OCTOBER 1ST COACHELLA VALLEY MONTHS OF SALES RATIO: On October 1st, the Coachella Valley’s months of sales ratio was 4.0 months (up from 3.0 months on October 1st, 2023). Market Watch commented that the months of sales ratio, which measures supply and demand, was now back to pre-pandemic levels. Further, they noted that even though inventory was still relatively low, the low sales numbers had kept supply and demand relatively balanced, leading to stable home prices over the last twelve months.
OCTOBER 1st COACHELLA VALLEY MONTHS OF SALES RATIO BY CITY: Market Watch noted consistent months of sales ratios between 4.0 and 5.0 months in most of the Coachella Valley’s nine cities on October 1st. The months of sales ratio in Indian Wells on October 1st was the highest at 6.4 months followed by Palm Springs at 6.0 months. Market Watch explained that since months of sales is really the supply-demand equation for housing, it showed that the Coachella Valley housing market remained balanced on October 1st. They further noted that if the months of sales ratios were to increase by one or two months, the market would begin to favor buyers over sellers.
OCTOBER 1st COACHELLA VALLEY MONTHS OF SALES RATION BY PRICE RANGE: On October 1st, the highest months of sales ratio was 7.8 months (up from 7.4 months on October 1st, 2023) for homes priced at or above $2M. The lowest months of sales ratio was 3.3 months (up from 2 months on October 1st 2023) for homes priced between $300K and $399K. Market Watch noted that since months of sales is really the supply-demand equation for housing, the large year-over-year increases in the months of supply ratios showed that the supply side of the market was slowly increasing in all price brackets. 
SEPTEMBER COACHELLA VALLEY DAYS IN THE MARKET: At the end of September, the median number of days in the market in the Coachella Valley was 49 days (up 11 days from 38 days at the end of September 2023). Market Watch noted that the median selling time had been gradually increasing over the last nine months and selling times were now back to pre pandemic levels.
SEPTEMBER COACHELLA VALLEY DAYS IN THE MARKET BY CITY: At the end of September, Coachella continued to have the lowest average selling time in the Coachella Valley at 34 days (up from 31 days at the end of September 2023). This was followed by Desert Hot Springs at 36 days (down from 46 days at the end of September 2023) and Cathedral City at 43 days (up from 26 days at the end of September 2023). At the end of September, Bermuda Dunes had the highest average selling time at 66 days (up from 49 days at the end of September 2023).
SEPTEMBER COACHELLA VALLEY DAYS IN THE MARKET BY PRICE RANGE: At the end of September, the longest average selling time was 71 days (up from 41 days at the end of September 2023) for homes priced between $900K and $999K. The lowest average selling time was 37 days (the same as at the end of September 2023) for homes priced between $400K and $499K. Market Watch commented that selling times usually increase with higher priced homes. However, they didn’t see that in the current market, which they felt was a positive feature for higher priced homes.
SEPTEMBER COACHELLA VALLEY AVERAGE PRICE PREMIUM/DISCOUNT: In September in the Coachella Valley, detached homes sold at an average discount of 2.1% (up from an average discount of 1.8% in September 2023). Attached homes sold at an average discount of 2.9% (up from an average discount of 2.3% in September 2023). Market Watch noted that the current average discounts were now in line with pre-covid levels.
SEPTEMBER COACHELLA VALLEY AVERAGE SELLING DISCOUNT BY CITY: In September in the Coachella Valley, Coachella had the smallest average selling discount at 0.8% (increasing from 0.3% in September 2023). Indian Wells had the highest average selling discount at 3.6% (increasing from 2.1% in September 2023).
SEPTEMBER COACHELLA VALLEY AVERAGE SELLING DISCOUNT BY PRICE RANGE: In September in the Coachella Valley, the smallest average selling discount was 1.2% (decreasing from an average discount of 1.3% in September 2023), for homes priced between $500K and $599K. The highest average selling discount was 6.2% (increasing from 3.7% in September 2023), for homes priced at or above $2M. Market Watch noted that as a general rule, price discounts increase as home prices increase. However, in the Coachella Valley in September, the lowest average discounts occurred in the middle price ranges. 
SEPTEMBER COACHELLA VALLEY PERCENTAGE OF HOMES SELLING ABOVE LIST PRICE: In September in the Coachella Valley, the percentage of homes selling over list price was 13.8% (down from 16.9% in September 2023). Market Watch expected the number of Coachella Valley homes selling above list price to remain at about one out of seven (or 14.3%).
THE BRIGGS GROUP | COLDWELL BANKER | Laurie Briggs - DRE# 01896117 | Tim Briggs - DRE# 01898254 | Coldwell Banker Realty - DRE# 00616212