Coachella Valley real estate is adjusting to a new economic reality.
Coachella Valley real estate update: As everyone knows, the real estate market everywhere is going through a crazy time. After a huge run up in prices over the past 2 years, caused by low inventory and high demand, the sellers were pretty much able to choose between their multiple offers, or accept a full price offer very quickly after list. Times they are a changing here in the Coachella Valley! Properties are still selling..under the right conditions, and if sellers list their properties at the right price.
Inventory is still fairly low, especially for homes that have the desirable South or West orientation that buyers love here in the sunny Coachella Valley. A great floorplan, and a killer location will still create plenty of demand, but pricing is critical. Just because your neighbor got $550/sf. a year ago, does NOT mean your home will garner the same amount.
Land is selling in the Coachella Valley. Interesting that demand has increased in the further Eastern areas of the valley, our more rural cities like Coachella, Thermal, and Mecca are seeing sales, and strong demand. Developers are purchasing land for estate home developments and multiple residential developments. Equestrians are investing in both land and farms, and event sites on multi acre properties are in high demand. Demand remains in our 9 desert cities IF sellers are in tune to the market and price their property correctly! Take a tour of this 108 acre parcel of land on 64/Pierce.
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Our popular Coachella Valley real estate market is shifting..
Coachella Valley market update July. Just in the last 24 hours, I’ve seen a number of price reductions on our local Coachella Valley MLS. There are even some reductions in long and short term rentals! Haven’t seen that in awhile. This article from the New York Times notes the slowing real estate market nationally. If you are looking to buy or sell your Coachella Valley property, give me a call at 760-285-3578.
Here in the Coachella Valley, we are still seeing increasing prices and property values due to low inventory and the fact that we are a destination resort location. Sellers that price their properties right, and are open to negotiating a bit will still sell their properties, but the hot buyers market from 4 months ago is done. Great sun orientation, floorplans and views still demand the top prices in the Coachella Valley, but now there are not multiples for most properties.
Median Sales price: $590,000 down 1.7 % since last month but up 18% from last year.
Days on Market: 34. Up 26% from last month and up 3% from 2021
Active Listings: 1,489 Up 7% from June and up 99% from last year!
Closed Sales: 544 Down 28% from June and down 39% from last year.
Months of Inventory: 2.7 up 50% from June and up 237% from 2021!
If you’re a buyer, it sure feels like the market is switching from a sellers market to more of a buyers market. Mortgage Interest rates seem pretty stable right now at about 5%, which is MUCH higher than last years rates, but still historically very manageable. As rates go up, prices tend to come down..that’s the good news for buyers. Take a tour of this incredible 10 acre equestrian property in Thermal, CA. $2,995,000
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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
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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.
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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
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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..
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The Eastern Coachella Valley city of Thermal has land, ranches & gorgeous homes!
Thermal has some new projects going on. Thermal, CA. is an East Valley city that is generating alot of interest as we head into 2022. There was the Thermal Beach Club that we heard about over a year ago. What’s going on with that? Now, there’s recent talk about a private golf course..very private near the southern tip of Thermal. For local real estate information or a free property consultation, call Kim Kelly at 760-285-3578.
The Thermal Beach Club is proposed to be just south of the Jacqueline Cochran airport and just North of Ave. 66 in a corner of Kohl Ranch. It was to have a surf club, various housing, but..the local residents raised the issue that this club in no way helps the locals. Thermal needs more low income or at least moderate income priced homes. Have a Beach Club wouldn’t be something that the local community feels would benefit many of the locals.
Coachella and the other Eastern cities of our beautiful Coachella Valley..Thermal, Indio, Mecca, are all drawing new interest. I have lived here in the Coachella Valley for about 40 years now, and the East Valley was always considered “way out there!”. Now, Indio is practically central valley, and Coachella and Thermal have become THE cities to invest in. Take a tour of this beautiful farm in Thermal, offered for sale for $1,775,000.
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Indoor/outdoor Living is what we love IN our Coachella Valley!
Which states are seeing the MOST sales increases??? Being a local Coachella Valley resident for 30+ years, I’m up to date on the local sales, but what’s going on in other states? I came across this article from Redfin that discusses what’s happening real estate wise across our other States. If you are looking to buy or sell land, residential or equestrian properties, give me a call. With over 20 years experience selling real estate in the Coachella Valley..Kim Kelly, 760-285-3578.
Keeping up on real estate trends is constant and always interesting! Take a look at these comparative Sales charts amongst the highest performing states. (Courtesy of Redfin) For the month of August, 2021.
Other August Highlights
Competition
- Indianapolis was the fastest market, with half of all homes pending sale in just 5 days, down from 7 days a year earlier. Denver, Oklahoma City, Seattle and Tacoma, WA were the next fastest markets with 6 median days on market.
- The most competitive market in August was Oakland, CA where 82.3% of homes sold above list price, followed by 78.3% in San Jose, CA, 74.8% in Rochester, NY, 71.7% in San Francisco, and 71.0% in Worcester, MA.
Prices
- Austin, TX had the nation’s highest price growth, rising 35.7% since last year to $475,000. Phoenix had the second highest growth at 25.2% year-over-year price growth, followed by Salt Lake City (24.3%), Tucson, AZ (23.5%), and North Port, FL (21.5%).
- 2 metros saw price declines in August: Milwaukee (-1.6%), and Bridgeport, CT (-1.1%).
Sales
Inventory
- Austin, TX had the highest increase in the number of homes for sale, up 5.5% year over year, followed by Virginia Beach, VA (3.9%) and Columbus, OH (2.8%).
- Baton Rouge, LA had the largest decrease in overall active listings, falling 52.8% since last August. Salt Lake City (-51.8%), North Port, FL (-43.9%), and West Palm Beach, FL (-37.5%) also saw far fewer homes available on the market than a year ago.
Redfin Estimate
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The entry to the Silverrock public golf course.
CDAR Market Report for August, 2021. For those buyers and sellers that like to keep on top of the Coachella Valley real estate market, I thought I’d share the actual Summary of the report from the California Department of Real Estate. If you are looking to buy or sell here in the Coachella Valley, call local realtor, Kim Kelly, at 760-285-3578. Enjoy the report!
CDAR report Summary
PRICES: The median price of a detached home in the Coachella Valley in August was $581,500. This compares to $495,000 a year
ago, which is an increase of 17.4%. The median price for attached homes in August was $373,500, up almost 29%. A year ago, the price was $289,000. Four cities have year-over-year price increases in detached homes over 30% – Indian Wells, Rancho Mirage, Desert Hot Springs and Indio. All cities except Rancho Mirage and La Quinta have now exceeded the all-time high price levels made in 2006.
SALES: Total sales in August are now just 3% above last August, which was the start of last year’s sales surge. Some of this slow down in sales is seasonal in nature but some of it we believe represents the beginning of a slow return to a more normal market. We believe it’s okay to see this as it’s hard to imagine sustaining last year’s high sales numbers. We see little price risk at this time.
INVENTORY & “MONTHS OF SALES” RATIOS: On September 1, 2021.
Total inventory in the Valley was 836 units, which compares to 1,959 units a year ago. This lack of inventory continues to be the overall driver of Valley housing and we are somewhat surprised
inventory did not begin to increase after the wide distribution of the COVID vaccine. On September 1st, the median value for the “months of sales” ratio throughout the Valley was 8/10 of a month; this compares to 2.5 months a year ago. The ratios have been hovering around these historically low levels for over seven months now. When compared against year ago levels, the condition of record low “month of sales” ratios is found in almost every city. Only Cathedral City, Coachella and Desert Hot Springs have ratios comparable to year ago numbers.
DIM: The median value of “days in the market” for the entire region continues to decline. It is now at 25 days compared to 56 days a year ago. This is another metric that we believe points to a housing environment with little price risk. Desert Hot Springs has the lowest number of days for detached homes at just two weeks, followed by Palm Springs at 19 days. These cities also had the least
number of days for attached homes.
PRICE DISCOUNTS: In August the median value for “Price Discount from List” was again 0.0%, which is the same discount it’s had for the last six months. As we’ve explained, since so many homes are selling right at list price, the median value is exactly 0.0%. When we use average discount instead of the median value, detached homes are selling, on average, 1.8% above list price.
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PGA West in La Quinta; huge demand!
Coachella Valley real estate update for April 2021. Pretty much the same patterns as the last few months emerged in April as well. Historically low inventory and extremely high demand continue to squeeze the market. Prices are going up, though certainly not sky rocketing here in the Coachella Valley, from Palm Springs proper, through the mid cities to the Eastern valley areas of Vista Santa Rosa, Thermal and Coachella. The sales pace is strong..if you price your home or equestrian estate properly, it WILL sell. Kimberley Kelly, a desert resident for 30 years and a Realtor for 20! 760-285-3578.
Sellers pretty much don’t have to discount their sales prices IF they price the property right. Buyers set the market values, and even though those values have risen, they still want to feel like they’ve gotten a fair shake on their new property..whether it’s vacant land, an equestrian estate, a golf course home, or a non-golf course home. Loans are still cheap, hovering around 3.2%. Anytime loans are that low, coupled with low inventory, buyers are going to have to pay more. I suspect we will see more listings coming on over the summer and into next fall, so if you miss one, don’t give up. Tell your Realtor to keep their eyes open and shoot you anything that fits your requirements.
April was slightly below March of 2021 as far as total closed homes, and yet there was still an increase of 17% in sales numbers from April of 2019. There are 658 active listings in the valley, down 77% from 2020. The average carrying time, days on the market is now 48 days, down 45% from 2020. There were 1228 closed sales, which is up 119% from one year ago, and we only have .5 months of inventory on the market, down 90% from 2020. If you see something you like, jump! If you want to sell and get a very good price, List!
This beautiful 5 acre farm with a custom home built in 2006 + a guest cottage and a 4 stall barn, is located about 35 minutes from Palm Springs, and is offered for $1,295,000.
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