Market Update; Coachella Valley

Coachella Valley home prices AND sales rose year over year in October of 2016 VS the same month in 2015. This is according to the data from the real estate research firm Corelogic DataQuick. There were 754 sales in the month of October in 2016.  The median price was $300,000.  The median just doesn’t mean that much to me, since it means that half of the sales were higher than $300,000, and half are lower than $300,000.  It still remains a great time to be a Seller.  I have to say that though the inventory numbers are still up there, the truth is the GREAT locations, preferred sun  orientation, or highly upgraded properties still sell quickly.

Resale homes seem to be preferable to New Homes this year.  New construction sales continued to stand still.  Sales of new homes have dropped by double digit percentages for the last 7 months.  The drop from last year this time in the new homes market is approx. 44%! That is astonishing.  I think the higher inventory numbers help this statistic, since buyers will tend to go to the best “deal.”

Price/ square foot varies greatly through our Valley Market

Generally speaking, the price/sf. of each development within each of our 9 desert cities, has not changed much from last year. It’s either stood still, or dropped a bit.  Corelogic found that our Coachella Valley median price/sf is $167.  In my world that is a REALLY good value.  I don’t see that low of a price/sf., other than in very select communities, such as the La Quinta Cove, North La Quinta, some in South Palm Desert, Cathedral Cyn. Cove..definitely NOT the norm within the gated communities as a whole.  The median comes from the very low price/sf of $109/sf in Desert Hot Springs, $228/sf in Palm Springs, and ranging up to $700/sf at Bighorn and Madison Club in La Quinta.

Price/Acre in our Eastern Coachella Valley market

Land Sales in the Eastern Coachella Valley continue to increase.  It is not a crazy, hot market, such as in 2005/06, when the developers were scooping up large swaths of land at $100-$175,000/acre.  However, the price/acre for Vacant Land, Agricultural Land, and Equestrian Properties  is quite steady.  As with Residential properties, the closer a farm/land is to the city amenities, the higher the price/acre.  As a buyer moves more Easterly, through Vista Santa Rosa, Indio, Coachella and into Thermal, the price/acre drops.  Price/acre varies from approx. $20,000 to approx. $75,000/acre for vacant land that has water, fencing, perhaps being leased for farming.  Add a house, add a barn, add other amenities, and the price/acre is closer to $45,000/acre for a GREAT buy!  Take the tour of Chocolate Mountain Farm in Thermal California.  20 Acre horse layup farm, Ag Water Plus a private Well (installed in 2016), and a small barn…