Market Reports

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)

The summer of waiting here in the Coachella Valley.

The summer of waiting.  I thought it was just the Coachella Valley, but now at the end of the summer, it’s clear that it is not a localized phenomena.  Buyers and sellers alike are “waiting”  For what?  I’m hearing they’re waiting for the election to be over, for I rates to come down, for more inventory to come on.  Guess what?  If all the buyers and sellers are waiting, won’t that mean there will be more buyers coming out at the same time, competing for more inventory yes, but our inventory is so low, and buyers tend to focus on the same things out here in the desert.  Hmmm..I have no idea what’s going to shake out, but it just feels strange.  Local agent/realtor, Kim Kelly 760-285-3578.

Most of my out of area buyers believe there will be a deluge of inventory here in the Coachella Valley.  That will mean they have more choices, and that the sellers will be more motivated to give them a “deal”.  I sure hope they are right.  From my point of view as a local realtor for 23 years, it means that the properties with the great locations, sun exposure, good floorplans, at the club or local area they want, will still be the ones the buyers are chasing.  Those sellers will not have to lower their prices.

Local sellers are choosing to hold back their properties until I rates go down and the elections are over, because they believe there will be more buyers competing for their properties.  They are probably correct.  We are a seasonal locale, and buyers are pretty much looking for the same product.  The good ones always sell!  I don’t know what the solution will be, but I suspect 2025 is going to come out roaring in the real estate industry.  Take a look at this home in the La Quinta cove that will be available in mid October. 

Should I list my Coachella Valley home now, or wait?

Should I list now?  A good client and friend of mine has decided to sell..but when?  The Coachella Valley, like many real estate market right now, is sitting.  What I mean is buyers are waiting, and sellers aren’t that flexible on their prices.  If you are looking to buy or sell in the Coachella Valley, give local resident and agent, Kim Kelly a call at 760-285-3578.

Whether the market is a buyers market or a sellers market, the time you choose to list your property for sale depends on multiple factors.

1.  Do you need the money now, or can you wait?
2. There is no crystal ball pointing to what will happen in the future.  Your realtor, no matter how experienced, cannot predict what WILL happen.  There could be a natural disaster, a war could break out; many things can influence the market.
3. Review the comps carefully.  How have homes like yours been moving in your area?
4. In the current market, buyers are waiting.  Two factors seem to be influencing their decision.  The election and Interest rates.  Boots on the ground, meaning lots of traffic through your house, may not be happening right now.
5. If you decide to wait to list after looking closely at the market, understand that there is no guarantee the market will go up.  It could just as easily go down.

In my local market, here in the Coachella Valley, price the property correctly, and the sellers still need to be open and flexible with offers.  Our seasonal population starts arriving about mid October, so if you can wait for season, there will definitely be more eyeballs on your property.  Price it right, be patient, and most of all don’t get insulted, but rather, respond to every offer!

Indoor outdoor living in the Coachella Valley!

Market Snapshot; Coachella Valley Cities:  Time for a quick recap for each Coachella Valley city.  Information gathered from the MLS, and it’s brief.  Overall city inventory, median days on the market, and median list price.  I have never put a ton of stock in the median numbers as they mean half above and half below, median in the middle, BUT if you follow these bi monthly snapshots, they do show some general info. on each desert city.  If you are looking to buy or sell your land, house, or investment opportunity, call Kim Kelly at 760-285-3578.

Palm Springs:  315 homes in inventory.  Down 9%  DOM:  77, up 22%  Median List Price:  $1.29 mil, down 6%

Cat City:  114 homes, down 3%.  Median DOM:  74, up 6%  Median List Price:  $600k, down 2%

Rancho Mirage:  167 homes, down 7%.  Median DOM, 70 0% change,  Median List Price $1.25 M, 2% down

Palm Desert:  211 homes, down 17%.  70 median DOM, up 11%, Median List Price $769k, down 3%.

Indian Wells:  38 homes in inventory, median DOM is 81, up 29%, Median list price of 2M, up 5%

La Quinta:  277 homes in inventory, down 7%.  Median DOM is 70, up 25%.  Median List of $898k, no change

Indio:  306 homes, down 7%.  Median DOM 63, no change.  Median List of $624k, down 3%

Joshua Tree:  188 homes, down 5%.  Median DOM 98, no change.  Median List of $497k, no change.

Take a look at this gorgeous 9.8 acre date farm in Coachella near to the new Travertine development:  $795,000

Housing Update;  Coachella Valley:  In just the past 2 weeks, the Coachella Valley home inventory fell by 29 homes or 1%.  Demand decreased by 12%.  With demand falling faster than supply, the Days on the Market for Coachella Valley increased fto 150 days, slowest level since Dec. 2022.  If you’re looking to buy or sell in the Coachella Valley, local resident and agent, Kim Kelly can help!  760-285-3578.

(Courtesy of Steven Thomas, Riverside County Housing Report.)

Coachella Valley mortgage updates.

Mortgage Updates:    Here’s to hoping for an Interest rate cut in September, but mortgage rates have come down so that’s good news!  From everything I’m reading and what I’m seeing here on the streets in the Coachella Valley, inventory is still low and prices are hanging firm.  We always have less numbers of listings in the summers, but we should have new listings hitting about mid October.  If you are looking to buy or sell in the Coachella Valley, give local resident and agent, Kim Kelly a call at 760-285-3578.

Home Price Gains are still strong:  Core logic and other major indexes such as Case-Shiller and the Federal Housing Finance Agency are seeing home price gains.  These reports still show that housing is a good investment for wealth creation.

Rising Housing Inventory vs. the Media:  Listings are up 37% from a year ago.  These increases are from very low levels as active listings are still down approx. 30% from pre pandemic levels.  This build up is very concentrated as there are only 4 states, Texas, Idaho, Florida and Tennessee, with higher inventory levels than 5 years ago.  In some parts of the Northeast, listings are down 65-75% since 2019.  Here in the desert, inventory is still tight, and demand will probably rise as I rates come down further, meaning home prices probably will not drop.

Unemployment Claims remain elevated:  Both Initial and Continuing Claims have trended higher this summer when compared to the start of the year, with Continuing Claims topping 1.8 million each week since the start of June. This shows that the pace of layoffs over the last two months has picked up at the same time employers have slowed down hiring. This weakening labor market suggests the I rate may very well be lowered.  (courtesy of Walter Neil of Franklin Loan Center, Palm Desert, CA.)

The Coachella Valley housing market

Coachella Valley Sold and Pending Homes:  This is from the MLS data.  It is very interesting and also educational.  It’s definitely slower than it was in 2023.  Buyers are waiting and sellers are holding.  That combination does not a strong real estate market make!  But I still encourage my buyers to continue to Look and keep a tab on the market.  Then when they are ready to step into the market, they are more educated.  If you are looking to buy or sell in the Coachella Valley, give Kim Kelly a call at 760-285-3578.

Pending and Sold Coachella Valley Properties for past year