PRICES: The median price of a detached home in the Coachella Valley has declined over the last two months. It’s currently at $670,000, which is up 15% year over year. Most of this decline is seasonal but it also represents the general corrective turn that is occurring in home prices. The median price for attached homes in September was at $465,000, which is down slightly from the previous month but up 24% year over year. Gains now range from 34.1% in Indian Wells to 12.2% in the Bermuda Dunes. In the attached home market, two cities continue to have gains over 40% - Desert Hot Springs and Indio.
SALES: The three-month average of sales in September was 581 units a month, which is 32% below last year. In the three years before the pandemic, September sales averaged 784 units, so current sales are objectively running about 25% below normal. Every city except Coachella had lower sales in September compared to a year ago. Sales in the city of Coachella are 42% higher. The largest percentage declines were in the cities of Rancho Mirage, La Quinta and Cathedral City, where sales are lower by 43%, 42% and 42% respectively.
INVENTORY&“MONTHS OF SALES” RATIOS
On October 1st, Valley inventory stood at 1,807 units, which is 214 units higher than last month and 924 more than last year. This monthly increase is opposite to almost every other California region, where inventory generally contracted last month. Some of this increase is seasonal and if the seasonal pattern continues, as we expect, inventory might possibly reach 2,500 units by February. On October 1st, the Valley’s “months of sales” ratio was 2.2 months, which like inventory is higher than last month. The ratio remains considerably below 3.0 to 3.5 months, which is normal for late-summer.
If you’re looking to sell your home this season, contact us for advice on how to get it ready to list, how to help it stand out in today’s shifting market, and more.