AUGUST MARKET REVIEW
Single Family Homes
PRICES:
Valley wide, the median price for Single Family Homes dipped last month to $659,950. Down about 10% from August of last year. Individual cities had a mix, from a 22% increase in Coachella, to a decline of 6% in Palm Springs. However, when we compare year to date, Jan 1 – Aug 31, 2024 vs 2023, the median price is up about 1% in 2024.
SALES:
August year over year, sales were down about 10%. But again, when we compare 2024 vs 2023 year to date, sales are up about 1%. The most active sales are in the $400,000 – $600,000, price bracket, then sales dip and pick up again in the $1m – $2m price bracket.
INVENTORY
August of 2023, we were averaging about 1,000 homes for sale. August 2024, we averaged 1,373 home for sale. That shows an increase of about 37% from last August. Even with that increase, we’re still about 1,000 units below pre-pandemic inventories. Following seasonal patterns, we’ll see inventory increase each month through February.
MONTHS OF SALES RATIO
Valley wide the months of sales ratio, (how long would it take to sell all current inventory if no new listings entered the market), was 3.7 months. Ratio’s are running pretty consistent across the valley between 3.0 – 4.0 months. Palm Springs was the outlier with the highest ratio at 5.0 months. When we look at months of sales ratios by price bracket, Homes priced between $700,000 – $800,000 are at 5.1 months. Homes priced over $2m are 6.2 months.
PRICE DISCOUNTS
Valley wide, homes are selling at 97.7% of the asking price, ( – 2.3% discount). Coachella is the only city selling with an average premium, .4% over asking. Bermuda Dunes had the highest average discount, selling at 96% ( -4% discount). The price bracket with the largest average discount is $2m+ averaging 6% off the asking price.
TIME ON MARKET
The average time on market valley wide sits at 48 days. Indian Wells is above the valley averages, at 63 days, and Bermuda Dunes at 60 days. By price bracket, homes priced between $900,000 – $1m are taking on average 69 days to sell.
SUMMARY
Right now we have a pretty stable market; year to date our prices and sales are in balance.
But it’s a delicate balancing act between our supply and demand. Lower interest rates will stimulate buyer activity. Increasing sales. and even though we have more inventory, without considerably more, an increase in buyer activity can start to push prices up again.
