The Housing market continues to be strong! Our local desert housing market for the Coachella Valley continues to remain steady. Our prices for residential properties is a little lower than last year. A home with a good orientation within it’s community, nice floorplan and in good shape will still sell, BUT it is harder for a buyer to qualify for a loan. That means that your home may sit a bit longer than last year. It’s important for sellers to be realistic with their pricing, and open to negotiating with buyers. Vacant land continues to sell and the price/acre has crept up from last year. We are still a valley of good land values, and well kept properties, whether they are residential, vacant land parcels, commercial investments or equestrian properties will sell! If you are looking to buy or list your Coachella Valley property, give local realtor, Kim Kelly a call for a complimentary property consultation at 760-285-3578.
5 reasons there will be no housing market crash (MSN reports)
- Coachella Valley inventories are still very low. In all communities and including land/equestrian properties, there just isn’t a deluge of inventory in any area. We will see the for sale inventory climb as we approach the 2024 season, but it will still be low. This lack of inventory tends to counter the increased mortgage interest rates and keep sales prices pretty steady.
- Home Builders just have not built enough inventory to meet the buyer demand. Our Coachella Valley cities have some new inventory to offer, but there still are not enough homes to meet the demand.
- Demographic trends: The pandemic created more home buyers in areas they hadn’t originally planned to move to! The rise of working from home has driven a certain group to purchase, millenials are a huge group coming into their buying years and the Hispanic population as a whole are keen on homeownership.
- Lending standards remain strict: This is fantastic. We don’t have Liar Loans like we did in 2005-07, no low or zero doc loans and zero down loans. Buyers now have to have stated income, good credit scores (650 or higher), and come in with the standard 20% down for the most part. If lending standards loosen, this could change.
- Finally…good news here..Foreclosure activity is low. After 2007, when foreclosures were flooding the market and depressing prices, there was no way to stop the crash. That’s not the case now. Most homeowners have equity in their homes, lenders aren’t filing default notices, and foreclosures are out there, but not many of them.
As the Coachella Valley season gets closer, look for new listings in all types of properties. The one here is a 2 acre property in Thermal, very near the Thermal Race Club, HITS showgrounds, golf and lots of other east valley amenities, yet very private. Offered for the season at $1,332,000, you get a mid century modern pool home + a 6400 sf permitted warehouse with a multitude of uses. Take the tour here..