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..
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.
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
- 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.
- 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%).
- 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.
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.
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.
Stalking a local Desert City Agent in the summer, sneak up on the local Market.
Coachella Valley First Quarter round up. So, here we are starting into the second quarter of 2021, and it’s time to look back at what happened in the first quarter here in the desert’s 9 Coachella Valley cities. What trends are we seeing? Is the Inventory really that low? Is it a good time to sell..to buy?? What’s happening with the loan rates? To be sure you are getting your best representation, be sure to contact a local realtor. For your own property consultation, or to schedule a tour specific to what you are looking for, give Kim Kelly a call at 760-285-3578.
It is currently a pretty frenetic housing market in our desert. The first Q of 2021 shows a market that is experiencing extreme conditions. Inventory is so low at all price points that homes are selling at or above List price. Average Days on the market is approx. 59 days. Remember that average means half sell before and half sell after. My experience in the market is that homes with desirable locations (sun/view orientation), are selling quickly, and there is MAYBE 1-2% closed price vs. List price. The average closed sales price is approx. $673,000, which is a 25% year over year increase from last year at this time. The Coachella Valley first quarter of 2021 ended with only 714 homes for sale in all 9 desert cities! That’s an 81% drop from the same time last year. A normal market has about a 6 month inventory, but we are at approx. .7 months of available inventory.
Good time to sell? Yes, if you want to get a good sales price. Good time to buy? Yes, if you want to get a good mortgage rate, and you know EXACTLY what you want to buy. Loan Rates have climbed a bit..now above 3%. but good grief, that’s still incredibly low! Take a tour of this incredible offering near the Coachella Music Festival grounds. 9.4 acre estate listed at $9,500,000
View from the arena at 10834 Union St., Cherry Valley, CA.
Coachella Valley real estate update: First Quarter, 2021 is over, and the market is still on fire here in the Coachella Valley. It feels quite different to me than the last cycle of real estate here in the Coachella Valley..because it is! I was selling new homes in 2001-2005. Screamed up, then the devastating crash that was felt pretty much everywhere, with our Coachella Valley being no different. What are the differences between then and now? For local real estate information or a free property consultation, give Kim Kelly a call at 760-285-3578.
The Coachella Valley market continues to outperform the same period 12 months earlier. Sales picked up while inventory cratered. Huge difference now than last cycle. In 2005-2007, the peak of the last cycle, sales were mostly driven by people buying home with little to no credit, on loans with little to no down! EEK! Now, fewer home son the market coupled with higher demand has created more competition for what homes are available.
Recent news about life getting closer to normal offers a glimmer of hope as far as inventory numbers. It is anticipated that alot of sellers will be putting their homes up for sale in the coming months. It is pretty much a sellers market right now, BUT, as more homes come on the market, it is going to become even more important to present your home in peak condition to guarantee that it will garner the highest price/sf. amongst it’s competition. Local information is critical!
Take the tour below of this incredible 5 acre equestrian estate in Cherry Valley, CA. Offered at $1,300,000, and with two homes, a barn, RV parking, huge arena and spectacular views..
Coachella Valley Housing Report 2020. The awesome views in The Desert.
Coachella Valley Housing Report: This report is put out by the Board and the numbers are based on the median, which is a very general number in my opinion. I don’t use the median for List prices, sales prices..pretty much anything other than a very GENERAL overview because it’s just too vague. But there is value in that too. The Coachella Valley Housing Report came out in April of 2020, so the corona virus affect has not been shown as dramatically as it will be in the next quarter. If you want an honest evaluation of your Land, Farm or Residential property, call Kim Kelly, local Realtor, at 760-285-3578.
First Q saw the median Detached Home Price rise to $440,000 and the median Attached home price settle at $299,000. More specifically, over the past year, La Quinta saw it’s median fall from $560,000 – $557,000…very slight. Rancho Mirage’s median for the Q, fell 14% to $655,000 and Indian Wells saw a fall of 19.7%, while Desert Hot Springs median rose over the past year 15% to $253,000.
Another interesting graph on the attached Coachella Valley Housing Report, is Home Sales by Price Range over the first Q based on prices. Sales prices decreased in all price brackets under $500,000. Homes priced between $500,000 and 1 million, sales are slightly higher than last year for our first Q of 2020, but for first time in a long time, there is a decline in sales for homes over a million dollars. The beautiful land below is available and I bet the seller, (if they’re on top of the market), will be flexible.
Coachella Valley real estate is slow, but not dead!
Coachella Valley Real Estate Update: April 2020. Real Estate life has changed dramatically for those of us used to fielding calls and showings all day every day. Every person in every profession I know is dealing with the same things, but each area of the state is a little different, and here in the Coachella Valley is no exception. Weather wise it’s been very mild and I’m looking forward to the summer heat! Rumor is that the virus isn’t going to like the heat..
Are people still looking??
20 acre horse business for sale in Desert Hot Springs, CA.
If you’re interested in buying a home, vacation home, piece of land, or an equestrian property, this may be the time to jump in! We do not have as many showings, as many calls, and we are having to encourage buyers and sellers to be flexible with their current contracts. Everyone is trying to figure out what’s coming, so buyers and sellers need to step back, hear the options and be reasonable! We can show property, but there are now restrictions and also disclosures for buyers and sellers.
Why buy Coachella Valley now?
Because everyone is afraid, and if a seller has a property listed, they WANT to sell. Now is the time to present a creative offer. Lower price, perhaps, but maybe it’s terms, that you structure to your taste. I’m seeing longer escrows, I’m seeing some earnest money released to accomplish that. Maybe the seller WILL agree to carry that land parcel that originally they would not consider at all. It’s always the brave ones that take the risks and reap the rewards! Take a look at this gorgeous working ranch in Thermal, 20 acres, and the seller is ready to make a deal..$1,500,000 list price.