If you follow the news you may be reading headlines right now that give the impression that home prices are going to take a dive. The reality is that this isn’t completely accurate, and headlines don’t provide a full picture into what’s going on. If you have questions about the market and current trends I’m here to help shed some light. Leave me a comment and let’s start the conversation! #thehelpfulagent #home #houseexpert #listreports #house #housingmarket #realestatetrends #icanhelp #themoreyouknow #realestateagent #realestate #househunting
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Category: <span>General News</span>
PRICES
At the end of February the median price of a detached home throughout the Coachella Valley was $617,000, which is a year-over-year gain of 19.5%. The median price for attached homes was $439,250, which is a 12 month gain of 29%. The cities of Rancho Mirage, Indian Wells and Indio have year-over-year increases for the average detached home above 30%.
Eight cities have price gains for attached home over 30%, with La Quinta having a year over year increase of 51.4%.
The high demand for attached homes is due to the lack of detached home supply in the lower price ranges.
SALES
Total sales in February averaged 852 units a month, which is 19% less than last February. While lower than last year, sales are still one hundred units higher than pre-pandemic levels.
Sales of detached home are down 17%, while those for attached homes are down 25% due to continued lack of supply. Compared sales by city, the largest declines are in the four major resort cities of La Quinta, Palm Desert, Palm Springs and Rancho Mirage. Some of this is due to the large price increases in these cities, which naturally reduces the size of overall buying pool.
Cities classified as working cities – Cathedral City, Desert Hot Springs and Indio – generally have sales comparable to year ago levels.
INVENTORY
Inventory continues to hover near record lows and on March 1st was at 607 units. This is disconcerting. The normal seasonal increase in inventory that usually occurs between September and March failed to materialize this year, just like it failed last year.
On March 1st the “months of sales” for the Valley was the same as the last month at slightly more than 2 weeks. A year ago, the ratio was one month. These historically low ratios continue to indicate very low supply and moderate to strong demand – two ingredients for much higher prices.
Even though some home prices have surged, this fundamental ratio strongly indicates that the upward price trend will continue.
DAYS IN MARKET
At the end of February, the median number of “days in the market” throughout the Valley was 29 days, which is two days more than last month. With inventory remaining low and sales staying high, demand continue to keep selling times near record lows.
Palm Springs has the lowest selling time for detached homes at just 21 days, followed by the city of Coachella at 22 days.
In the attached market, Cathedral City have average selling times of just 8 days, followed by Palm Springs at 15 days.
SUMMARY
So, what do all these statistics mean? In a nutshell: Inventory is historically low and prices continue to remain high, and in some communities, continue to rise.
When will this market end? No one knows. We can speculate. Supply and demand, higher mortgage rates, the stock market, and turbulence in the world are factors that can affect the real estate market. Sales can remain high for a period of time or stagnate.
As I’ve been saying for many months – If you’re considering selling your desert home, now is the ideal time. If you’re a buyer, have your funds in place to immediately make an offer when you find a great home.
I’m here to assist you with your real estate needs here in the desert. Feel free to contact me.
Best Regards,
Darlene
The median price for a detached home in the Coachella Valley ended the year at $615,000, which represents a yearly gain of 18.3%. Attached homes ended the year at $403,000, representing an increase of 22.5%.
Breaking down the percentage gains by cities for detached homes and attached homes:
Rancho Mirage 36.6% and 34%
Palm Springs 36% and 30.4%
Indian Wells 34% and 30.6%
Palm Desert 30% and 36.4%
La Quinta 28% and 47.5%
Indio 29.7% and 31.6%
The largest price increase of attached homes was 60.4% in Desert Hot Springs, followed by 42.3% in Bermuda Dunes.
The median number of days in the market throughout the Valley was 26 days. And, there are plenty of properties that sold above asking price within days of listing.
The price increases for sellers are wonderful but it makes if difficult for homebuyers to find homes that meet their wants and needs.
So, who are the buyers?
We still have the retirees and the snow birds, including those in Canada. In the past 2 years there’s been a stunning influx of new homeowners who have fled the dense and depressed cities around the country who want open, spacious and active places like our Valley. The pandemic made many in-office work scenarios impossible, creating a large swath of employees who could work from home. This new work force is younger and many are from California cities. The second-home and investment buyer is still looking out here. Even through various market ups and down, typical for resort communities, real estate investment remains one of the safest places to build wealth.
After a massive jump in home prices since the pandemic, pricing is expected to cool off somewhat, given low inventory and rising mortgage rates. This doesn’t mean there won’t be another increase, it just means home prices may be a bit more modest.
In closing, I’ll again say that if you’re a seller, now is a great time to sell. And buyers, for now, expect to see fewer homes and more interest from other buyers in your selections.
Year-Over-Year Price Increases and Lowest Inventory in History
The median price of Valley detached homes in March was $549,000, which is 27.3% above last year. The attached home median price in March was $345,000, up 15.4% over the last twelve months.
Prices are expected to continue moving higher by following the seasonal pattern of reaching highs in May before pulling back. Seven cities how have median price increases for detached homes over 20%, with two up more than 30%. It should also be noted that five cities have exceeded the historic price highs they made in the year 2006, with two more only fractional percentage points away.
The three-month average of total sales is now averaging 1,129 a month, which is 39% higher than last year. Due to seasonal forces, average could reach 1,200 units, or higher, over the next two months and sales staying in the high range.
Inventory continues to decline and as of this writing, there are 707 units for sale. That compares to 3,034 units a year ago. Continued high sales and lower inventory has again driven the “month of sales” ratio to new historic lows. It is now just 4/5 a month, or just a little over three weeks. A year ago, the ratio was 3.7 months. This lack of supply is causing bidding wars amongst the many home buyers and is the force driving home prices much higher.
If you are considering buying, the time is now. I see the current trend of appreciation continuing for the next few years.
If you are considering selling, now is a great time. Most homes sell within days. Don’t get left behind.
Put me to work for you! Please don’t hesitate to contact me for specifics.
Palm Valley Country Club, developed in 1983, is a private gated golf and tennis community. The 1,274 condominiums offer 14 different floor plans ranging in size from 936 to 2,489 square feet. The community offers single-level condos with fairway views of the two courses, Championship and Challenge. In addition, there are numerous buildings offering upper and lower level units surrounding the Challenge course.
If you love golf and tennis, then Palm Valley Country Club offers you a premier lifestyle club. Situated on lush tropical terrain centrally located in Palm Desert and just 10 miles from Palm Springs, Palm Valley Country Club redefines the private golf club experience. Blending time-honored traditions of golf with modern, upscale conveniences, the club boasts 36 magnificent holes of golf designed by Ted Robinson, Jr., and an array of golf, social and recreational amenities and personalized services and exclusive privileges that have earned it recognition among the finest private clubs in the Coachella Valley.
The masterful golf courses are just part of the experience. Between rounds, you can work on your game at the practice facilities, shop the Pro Shop for equipment or clothing, and enjoy the club’s bar, lounge and restaurant.
Palm Valley Country Club’s tennis and pickleball courts offer a variety of opportunities for social or competitive play in leagues, round-robins, tournaments, and inter-club events. Their talented USPTA-certified teaching professionals are available for private and group lessons for children and adults, and offer a Junior Tennis Academy for children ages 6-17.
Palm Valley Country Club is celebrated with its 100,000 square foot clubhouse, golf and tennis pro shop, men and women locker rooms with steam, sauna and jacuzzi, two restaurants and lounge, olympic size lap pool, state-of-the-art fitness center and a day spa/salon.
Whether you’re a passionate golfer or tennis player looking to improve your game or you simply want a place where you and your family can relax and enjoy the weekend, Palm Valley County Club offers you the lifestyle of your choice. It is no wonder it has received the designation of the ‘fun club’.
Home prices range from $250,000 to over $600,000. Monthly HOA is $725. Golf membership is separate.
Palm Valley Country Club is located off Country Club Drive, between Washington and Cook streets.
http://www.palmspringsvalleyhomes.com
As we face the challenges of the COVID-19 pandemic, my first priority is the health of my clients and the communities we live and work. I’m committed to supporting my clients through this challenging time.
People are still out looking at homes, putting their homes on the market, writing contracts, and closing on life’s biggest transaction. In order to continue to provide the same high level of support, we realtors have had to adapt, adjust, and work together like never before.
Real Estate in Times of Uncertainty
Much of the news these past few weeks has been regarding the unfortunate events and circumstances caused by COVID-19. Day-to-day and hour-to-hour news is changing how we best address the COVID-19 matter.
As your trusted realtor, I’ll stick to real estate and defer to experts like the CDC for how to best address your health and safety. I don’t want to minimize the effect this current situation has on other aspects of life, but I wanted to offer some insights and reassurance regarding my expertise and experience – real estate.
You might be worried about your home value at this time of economic upheaval. That’s understandable and completely valid. The good news is that for most homeowners, the best course of action, as well as the easiest, is to do absolutely nothing. Just sit tight, be thankful that you have a nice place to gather with your loved ones, work from home, or even self-quarantine if needed. At times like this, it becomes abundantly clear that your home is so much more than just an investment.
Fortunately, real estate has historically proven to be a relatively stable and sound investment in times of crisis. For example, Dr. Marci Rossell, a leading economist who specializes in real estate, noted that the housing market remained stable in the aftermath of 9/11.
In the days and weeks following 9/11, there was a real sense of panic and uncertainty. Airlines completely shut down, conferences and events were canceled, oil and stock prices became hyper-volatile, and news stories predicted economic activity could grind to a halt for quarters if not years. Remember?
Fortunately, the shock that 9/11 delivered to the world economy was short-lived. It was a classic V-shaped economic deceleration characterized by a rapid decline followed by a rapid recovery. Unlike the stock and bond markets, real estate markets move slowly. At a time of economic uncertainty and volatility, based on past events it’s a pretty safe bet that real estate will remain a bastion of stability.
For those who are active in the real estate market currently and wondering how the pandemic will affect buying and selling:
Buying a Home
- We live in a digital age of real estate where information is abundant and available at your fingertips, without even leaving your home.
- This current COVID-19 crisis will actually slow down the market enough for an active buyer to have a greater opportunity to secure a home purchase, with less competition from other buyers.
- The recent rate reductions and questions about how the economy will impact a buyer’s purchase is valid. It’s more important than ever to have a trusted mortgage partner to help guide through these times. Fortunately, I can introduce you to an expert.
Selling a Home
- I’m a firm believer in cutting-edge real estate marketing technology. In times like these forward-leaning marketing tool and strategies are helping sellers even more than anticipated.
- My selling system incorporates the abilities for home buyers to view your home digitally in every manner possible. I know buyers are searching voraciously online and I will ensure your home stands out in their searches.
- In days and weeks ahead, we may see buyers making offers on well-marketed homes without physical showings. Virtual showings are becoming commonplace in today’s challenging time.
The Impact of Federal Reserve Actions on Mortgages
- The Federal Reserve has recently made some large interest rate cuts. However, it is important to remember that these cuts do not necessarily impact mortgage rates.
- We should hopefully see rate lock options stabilize. The question looms where mortgage rates will settle, but we should hopefully see the large swings slow down.
In these days and weeks ahead as news continue to come out about COVID-19, I want you to know that as your trusted real estate advisor I am on the front lines of the market. There are a lot of unknowns, but I will closely monitor the situation and am always available for any of your real estate needs, questions, or concerns.
In closing, please wash your hands and stay your distance from others. Give me a call. I welcome the opportunity to be of assistance!