La Quinta, one of the Coachella Valley fabulous cities!

Second Q real estate Coachella Valley:  Here we are finishing the second quarter of 2022 and it is definitely slowing down.  What a difference a few months makes..even in our resort destination Coachella Valley!  Inventory is still low, but buyers do have a bit more power here in the valley, pretty much the same as anywhere else.  The price of Land and Equestrian properties remains stable, but remember there are NEVER as many listings, and the buyer pool is much smaller, so it’s a different market than Residential.  If you are looking to buy or sell in the Coachella Valley, call Kim Kelly, local Realtor for over 20 years; 760-285-3578

In the first quarter here in the Coachella Valley, we had low inventory, rising prices and really strong demand continuing from the previous 12-18 months.  Different deal in the second Q of 2022.  Inventory is rising, demand is decreasing.  So far prices remain pretty stable, but demand is down, so it’s pretty safe to say prices will be dropping a bit.  Sellers are still getting their numbers IF they are a bit more flexible.  However as we head into the 3rd Q and the quiet summer months, I expect the sales pace to be a bit slower and the discount from List prices may have to be considered by sellers.  I’m counseling my sellers to be realistic.  If they want to sell now, they must hear the buyers and consider their offers.

There were 2584 homes sold in the second Q of 2022, a 23% drop from the same Q last year, but a slight uptick from the first Q of 2022.  There are still plenty of sales, but compared to last year, or even last Q, the pace is slowing, so we all need to be aware of that when pricing a property. Take a tour through this 10 acre farm at Deer Creek Equestrian Center, Thermal.  $2,995,000

Private Pools are popular in the Coachella Valley

Coachella Valley home prices???  What’s going on here in the Coachella Valley with regards to the end of the second quarter in 2022.  While our market has slowed to a more normal pace, it is still going pretty fast.  Properties still receive multiple offers, but it’s not a charge.  The mortgage rate increases, inflation, and the war in Ukraine are weighing heavy on economics in general, and has slowed our home selling market down.

A large percentage of our Coachella valley home buyers are cash, and our local inventory is still very low.  I have seen less activity over the past few months in the 1 to 3 million dollar price point.  Most of the homes sold last year were $600,000 or higher, while 35% were sold in that price point last year, the rest were lower.  As prices have gone up, cash buyers have continued to pave the way for a large percentage of our valley buyers.

The economic impact on home prices is covered in this breakdown from Corelogic.  Take a tour of this amazing 35 acre date farm in Coachella.  Three parcels, two homes, date packing facility, great zoning, hard signalized corner location at 52/Van Buren.  $8,500,000.  If you are looking to buy or sell a home, equestrian property, or land, give me a call at 760-285-3578.

Land and equestrian properties need curb appeal too!!

What’s ahead for real estate in 2022?  So, we’re half way (almost) through the year and the coachella valley real estate is still smokin hot..but are there signs that it’s ending??  I don’t have a crystal ball, and I personally am very aware of the increased Mortgage rates, the increasing Inflation, and hugely fluctuating stock market, BUT I have no insight as to what’s going to happen in the future, so I thought I’d write a blog on exactly that from some different sources.  Decide for yourself!  Kim Kelly, local realtor for over 20 years 760-285-3578.

It’s been a red hot housing market from East Coast to West Coast.  Why?  COVID allowed buyers to work remotely, Interest rates were insanely low, and years of more demand than supply in the housing market all helped to create that storm.  Fortune reviewed seven industry forecast models to help us PERHAPS see what’s coming..

US home price growth:  Since 1980 Fortune calculates average price growth of 4.6%/year.  Over the past year price growth (19 % +) is four times that level.

Rising Mortgage Rates:  Even though we are still at good MI rates of 3.4-3.6% by the end of the year, it will cut out many buyers.

More or less mobile workers?  CoreLogic states that as we head into 2022, moderation in the current flight pattern may be changing.  IF corporate America pushes harder to bring staffers back into the office, that may slow buyer demand.

Take a tour of this amazing property, 20 acre working farm for $1,775,000

Multi acre estates are in high demand in the Coachella Valley!

March real estate update:  The Coachella Valley continues, like most of California to notch record breaking sales, and increasingly depleted listing inventories.  Sellers continue to be in the drivers seats, especially with residential properties.  The land values are continuing to bring increased prices/acre, and developed equestrian properties that can double as event sites are much in demand.

Overall, sales are staying swift, and residential properties are being purchased faster than they can be replaced.  Here are some statistics pertaining to our local market..

• Approx. .6 month inventory (stable market is considered at about 6 months inventory)
• 1,079 homes sold in March, 2022, with a sales volume exceeding $677 million
• Sales volume increased 11.6% from last year.
• March saw 1116 new listings, a 9.9% decrease from March last year, but an increase from February of approx. 10%.
• Median sales price increased 23.9% from last year to $607,000
• Average price/sf is $426 a 35% leap from last year.

I rates are rising, that’s true, but here in the Coachella Valley, most property purchases are cash deals, so it remains to be seen how much of an impact I rates will have.  Take the tour below of a 9.4 acre estate in Indio..