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Tag: <span>how real estate agents determine the pricing of homes for sale</span>
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.
Home Prices, Election, Covid-19, Oh My!
It’s been quite a November and we’re only 13 days into it.
Many of us thought after November 3rd the Democrats and Republicans would stop their constant fighting and we’d know who the Presidential candidate would be sworn into office in January. To add to our worries, Covid-19 high positivity rates smacked us again.
But there is a bright light in our housing market.
People from around the country are buying homes where they’ve been vacationing. They’re buying homes in leisure destinations as permanent residences and as secondary homes. Our Palm Springs area is one of those destination hotspots. And we locals know why; weather, beautiful scenery, lifestyle, and fabulous homes at fantastic prices.
2020 has proven to be a very big year in the real estate market in the Coachella Valley. Buyers who had been waiting for “the right time” to purchase a home found this year to be that right time.
Our residential inventory is still very low in all prices points, with the exception of the uber high-end properties. If a property is priced correctly, based on its location, sun exposure, floor plan and other factors in its community, it will sell – and sell quickly. But even in this hot market, sellers must remember that buyers set market prices, not sellers. It is a sellers’ peril if they disregard this reality. If they do, they won’t sell their homes.
As we approach the holidays, realtors would generally see a slight slowdown before our January to April active season. However, since Covid-19 people keep streaming into the desert searching for their ‘desert dream home’.
There’s been a huge surge of sales in the detached home market. In the past 1-1/2 months, home sales experienced a 39.3% increase year-over-year. The average home sale is a tick over $600,000. In the $700,000 to $800,000 price bracket, sales increased 96%. In the million-dollar and over price bracket, sales went from an average of 45 units to over 110 units a month, an increase of 144%.
Entry level homes priced between $250,000 to $350,000 are very hard to find. If a single-family home comes on to the market in this price range, it won’t list for long. In this price range it’s easier to find a condo.
With the start of our selling season, we anticipate seeing more homes hit the market, which may ease some of the upward pressure on home sales. However, as with everything else this year, nothing is running its usual course.
Stay tuned. Stay connected.
