Real estate thoughts for 2025

Real Estate maybe’s for 2025?  Despite what some realtors think, none of us have crystal balls, and there is no way to be totally accurate.  The following are four interesting takes on the 2025 upcoming market from Zillow Premier Agent blog.  Anything that makes us think, and consider possible options is valuable!  If you are looking to buy or sell in the Coachella Valley, give local realtor, Kim Kelly a call at 760-285-3578.

1.  Mortgage Rates:  There was a short lived dip over the past 2 years, before the October rise, created some optimism and sales.  2024 was pretty tight on inventory, and Zillow predicts a more active housing market in 2025, with buyers having more of an upper hand.  Some signs point to rates easing in 2025, but as we saw in 2024, rates rarely do what’s expected!
2. Housing market Activity:  Predictions are that it will pick up.  There will be modest home value growth, the same as 2024.  Zillow predicts 4.3 million in coming sales for 2025, up slightly from 4.1 mil in 2023, and a projected 4 mil in 2024.
3. Buyers Market Predictions:  According to Zillow’s market heat index, most buyers markets right now are in the Southeast.  Predicted buyers markets will spread to the Southwest in 2025 as inventory continues to rise.  However, if I rates fall amore than expected, that will dim the prospects of a Southwest spread.
4. Housing types:  Americans are really embracing small home living.  The pandemic era need for more and more space is over.  Home buyers will increasingly lean into smaller homes as a more sustainable, affordable and desirable way to live.

Predictions are just that..predictions!  Zillow does fabulous market research, and research helps us understand what is happening, or may happen.  Gather your information, but ultimately, buy a property if and when you are ready, and find that ONE!

Just another beautiful day in the Coachella Valley!

Coachella Valley real estate update:  Inventory is up, days on market are up, medium sales price is also up in our Coachella Valley cities.  Total sales are however, down about 32% over last year.  (This info courtesy of the CDAR, which is the California Department of Real Estate).  Call local agent, Kim Kelly for info on your home value, 760-285-3578.

The Coachella Valley Real Estate Summary

PRICES: Prices have begun their seasonal rise. The median price of a detached home in the Valley increased for the first time in six months. It ended November at $634,990, which is $15,000 above last year. The median attached price ended November at $447,000, which is $8,000 less than last year. Year over year price changes in detached homes range from a gain of 11% in Indian Wells to a decline of 7.6% in La Quinta. Gains of the average size attached home range from 15.4% in Desert Hot Springs to minus 3.4% in Indio.

SALES: When you take out seasonality, sales are running 32.1% below normal. The three-month average in November was 472 units compared to 477 units a year ago. In most cities, sales are comparable to year ago levels. Only the cities of Rancho Mirage, Coachella and Indian Wells have sales measurably less than last year. Dollar sales in November were $365 million, which is 3.4% below last year.

INVENTORY & “MONTHS OF SALES” RATIOS: Inventory is back to normal. On November 1st, Valley inventory was 3,187 units, which is 869 units higher than last year. We haven’t had inventory over 3,000 since 2020. The Valley’s “months of sales” ratio was 5.3 months, which is 1.5 months more than last year. We see consistent ratios between 5.5 and 7.0 months in most of the nine cities. The ratio in Indian Wells is now the highest at 15.3 months.

DIM: Selling times are coming down as the median selling time dropped for the second time in nine months. At the end of November, the median number of “days in the market” in the Coachella Valley was 43 days, which is only seven days more than last year. The city of Desert Hot Springs has the lowest average selling time at just 34 days. This is followed by Indian Wells at 35 days and Indio at 41 days. Rancho Mirage has the highest median selling time at 53 days.

PRICE DISCOUNTS/PREMIUMS: Price discounts are back to normal. Currently, detached homes are selling at an average discount of 2.1% compared to 2.1% a year ago. Attached homes are selling at a 2.6% discount. Coachella, Indio and Cathedral City have the smallest selling discount at 1.4% while Rancho Mirage is selling homes with the highest average discount of 3.4%. The percent of homes selling over list price is 15.0%. This is 1/2% less than last year.  Take a tour of this gorgeous 9.8 acre date farm in Coachella, CA. 

La Quinta offers many housing options.

Coachella Valley Market Update:  Inventory is rising, buyers are coming back into town, price points are coming down a little bit, and the sun is out!  Life is fabulous in the Coachella Valley, and our desert winters draw so many seasonal people to escape their cold locales and hang out in the valley for some sunshine.  Local agent/resident, Kim Kelly 760-285-3578.

Rising Inventory

The Coachella Valley real estate market is experiencing a rise in active listings. Currently, there are 2,354 housing units available, up from 1,865 units last year. This surge of nearly 26% indicates a steady increase of properties onto the market throughout the year.

Declining Sales Activity

In contrast to the rising inventory, the number of sold listings has decreased. There were 363 homes sold this year, down from 411 a year ago, marking a decline of approximately 11.7%.

Pricing Trends

The average sale price has seen a notable decline to $704,961, which represents a 7.4% decrease from last year’s average of $839,524.

Days on Market

Homes in the Coachella Valley are currently spending an average of 67 days on the market.  A longer days-on-market metric suggests that buyers are taking their time to make decisions, weighing their options carefully in the current environment.

Implications for Buyers and Sellers

For buyers, the uptick in inventory offers a broader range of choices and may reduce competition, which can lead to better negotiating opportunities. The decline in average sale prices also creates a more favorable environment for those looking to enter the market or upgrade their current living situation.

Sellers, however, may need to reassess their pricing strategies in light of the declining average sale price. With more properties available, competitive pricing becomes crucial to attracting potential buyers.  (Courtesy of Palm Springs Tribune)