In Coachella Valley, low inventory is pushing home prices higher, and buyer’s are paying them!
It seems that more of our Coachella Valley neighbors are staying put, resulting in far fewer homes on the market in July 2018, as compared to July 2017. Whatever the reason…great weather, shopping, entertainment, the result is, that there are fewer homes on the market.
Good news is, the flow of home shoppers and buyers into the Palm Springs desert has not ebbed, and in fact, seems to be increasing. What this means is that home prices are rising in response to the reduced inventory, and even better, buyers are paying the higher prices!
Home Sales and Prices are Up!
The recently released July stats released by Trendvision® show that the Number of Homes Sold increased by double digits for homes priced, Up to $499,999 by (+12.7%), and $500,000 to $999,999 by (+10.4%). Only the luxury home market, homes priced $1M+ experienced a decrease in the number of homes sold by (-8.3%).
Average Sold Prices also increased in all three pricing categories. Homes priced, Up to $499,999 saw average home prices increase by (+5.7%), and homes priced 1M+ increased by (+11.7%). Homes priced from $500,000 to $999,999 increased by 1.1%.
Homes For Sale and Days on Market are Down!
The Number of Homes for Sale this July versus last, are lower by as much as (-25%) for homes priced, To $499,999, and (-15.6%) for homes 1M+. Even homes in the mid-range, $500,000 to $999,999 saw a decline in the number of homes for sale by, (-4%).
The Number of Days on Market again declined year over year. For the month of July 2018, homes priced, Up to $499,999 sold in an average of 84 days, a faster pace over last year by (-11.6%).
Are We in a Sellers Market?
While no one can predict what will happen in the long term, it seems that people have been buying into a higher priced market for the past 6 months, and the homes for the most part, continue to sell quicker. All indicators thus far are favorable for many home sellers. Of course, it is not so in every city or every neighborhood, but overall the Coachella Valley residential real estate market is looking pretty solid.
Typically, people are willing buy into a market and pay higher prices when they are confident about the area’s future economy. Without a thorough study, it’s impossible to tell what is driving current home buyer decisions, but optimism about the future of the Coachella Valley’s economy must be a part of them. And, that’s something we can all rally behind!
By the Numbers and City Standouts!
July’s year-over-year averages per city are amazingly positive. Who would have guessed that July, one of our hottest months would turn out to be one of the years’ best for Number of Homes Sold, and Average Sold Price?
Cities with the highest percentage increases in Average Sold Price: Rancho Mirage (13.8%); Bermuda Dunes (12%); Indio (6.9%); La Quinta (5.1%); Cathedral City (4.2%). Palm Springs decreased by (4.7%).
Cities with the greatest percentage increases in the Number of Homes Sold: Palm Desert (17.3%); Palm Springs (14.5%); Indian Wells (11.8%); La Quinta (10%); Bermuda Dunes (6%); Cathedral City (2.5%). Indio decreased by (-6%).
Cities with the greatest percentage decreases in Days on Market: Bermuda Dunes (-53%); Indian Wells (-28.5%); Rancho Mirage (-22.8%); Cathedral City (-19.4); Palm Springs (-15.8%); Indio (-10%); Palm Desert (-8.9%). La Quinta increased 10 110 days, (+5.8%).
Contact me today! For a detailed report of home prices in your neighborhood, and a free home market valuation.
July 2018 Trendvision® Reports were used to calculate this report and were based on data available at the end of June 2018. All reports presented are based on data supplied by the Desert Area MLS. Neither the Association nor its MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Association of its MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed. Donna Ambrose, REALTOR®, Keller Williams Realty, La Quinta, CA, CalBre##02038351
