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.