OCTOBER IN THE DESERT
October marks the end of a long hot summer in the Desert, the beginning of a new season – and the time we start to look for seasonal patterns in the local real estate market with our Coachella Valley Real Estate Market Snapshot.
2023 vs 2022
When we look at the year-over-year averages for Single Family Home sales in the 9 cities that make up the Coachella Valley, looking at October 2023 vs 2022, we ended up with just 6 fewer home sales from last year. Prices softened, down about 3% and Inventory is up slightly, by 6 homes valley wide.
PRE vs POST
Like much of the country, the Coachella Valley Real Estate Market was hugely impacted by the pandemic with extraordinary increases in the number of sales, outpacing demand, and significant price increases. So, it makes sense for us to look at our market from the perspective of pre-pandemic and post-pandemic levels. Taking out the “unnatural” spikes of the pandemic.
PREPANDEMIC
The average selling price in October 2019, (pre COVID), for a single-family home was $583,000. ($248 / Sq Ft) The average time on market was 82 days, and those homes were selling at about 97% of asking price. We had about a 5.8 month supply of homes for sale.
POSTPANDEMIC
In our Coachella Valley Real Estate Market Snapshot, we fast forward to October 2023, and see the average selling price is now $919,000. ($388 / Sq Ft) with an average of 55 days to sell, and those homes are selling at about 98% of the asking price. Today we have 4.8 months supply of homes for sale.
PACE OF TRAVEL
Here’s a great analogy for you; if you’re driving along the I-10 West bound, traveling at 70 miles / hour and you start to climb the San Gorgonio Pass leaving the valley floor, your speed drops to maybe 60 miles / hour, does that mean you’re going in reverse? No, it means your speed is slower, but you’re still moving forward. Much like our real estate market.
MARKET ABSORPTION
As you can see from our Coachella Valley Real Estate Market Snapshot, the October 2023 market is strong, albeit at a slower pace than the frenzy of the pandemic. From pre-pandemic levels, Single Family Home prices are up 57%, it’s taking less time to sell, and the sale to list price ratio is up, but the pace of sales have slowed, like our freeway analogy. October 2019, valley wide there were approximately 2,700 homes for sale, today there are about 1,367. Based on the pace of sales, our absorption rate is sitting at a little more than 20%, meaning the Coachella Valley Real Estate Market is absorbing about 20% of the inventory every 30 days. Industry standards say a 15% – 20% absorption is a neutral, or “balanced market”. Above 20% favors the Home Seller, and is considered a Seller’s Market. Below 15% would be in favor of the Buyer, or a Buyer’s Market.
LOOKING AHEAD
As the new season ramps up; the numbers indicate that we can expect to follow our seasonal patterns, with an increase in new inventory, giving Home Buyers more choices. And just now, after a quick call with our Lender, Dean Rathbun with United American Mortgage, rates are down again, 6 7/8 fixed with 1 point on a 30-year conforming loan. Between new inventory and lower interest rates, we’re optimistic, and expect to see more buyer activity heading into the season.
Cathi Walter is a Broker Associate and LUXE Director with Bennion Deville Homes. With over 20 years experience in the local market, Cathi has a deep working knowledge of the Desert Real Estate Market. If you’re thinking about selling your home in the Coachella Valley, you need to call Cathi first. She’s always happy to provide a more in depth analysis for your neighborhood market, and share some of her top line marketing strategies that maximize what you can ask, and expect to receive for your home, contact Cathi today
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