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  • Cathi & Ben Walter
  • Sales & Marketing Specialist, Realtor
  • 44530 San Pablo, Suite 101
  • Palm Desert, CA 92260
  • P: (760) 218 – 5752
  • F:
  • E: Cathi@DesertAreaHomeFinder.com
  • DRE# 01346930
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A Message From Cathi & Ben...

We hear similar stories repeated in different ways from our clients; At first, they look forward to stolen weekend's to golf & relax in the desert - they gradually discover they're crafting ways to spend more time here until it becomes clear, life just doesn't get any better than this."

Once that realization hit's, the process of change begins... We know what an extraordinary commodity your home is - buying or selling a home can be one of the most important decisions you will make and having the right team on your side will make the difference.

We specialize in homes throughout the Palm Springs Valley including Palm Desert Real Estate & Homes, Indian Wells Real Estate & Homes, La Quinta Real Estate & Homes, Rancho Mirage Real Estate & Homes, Palm Springs Real Estate & Homes& Indio Hills Real Estate & Homes. Whether you want to buy or sell an estate, lock & leave property with income potential, a resort property, land to build your dream home, or a property located in a country club or golf community we know the desert and are here to help. Our motto, If its important to you, it's important to us, guides us as we help our clients buy or sell a home in the desert.

Thank you for visiting DesertAreaHomeFinder.com, we hope you find our site helpful and we look forward to speaking with you it's easy, just click on the picture of a cell phone in the upper right corner of this web site and it will ring our cell phone directly.

Personal Messages

COVID and the Real Estate Market in the Coachella Valley

The Real Estate Market in the Coachella Valley and COVID

Coachella Valley Home Sales

Coachella Valley Single Family Homes. Palm Springs, Cathedral City, Rancho Mirage, Thousand Palms, Palm Desert, Indian Wells, Bermuda Dunes, La Quinta, Indio

A standard market update isn’t sufficient to describe the rapidly changing real estate market in the Coachella Valley due to COVID.

So with the help of Market Watch LLC, we’re watching the market using shorter term metrics that demonstrate more of the daily moves, based on a 28 day average.

 

 

 

We’re comparing Real Estate Market Metrics *March 19  – May 15, 2020 vs the same time period in 2019 and the impact COVID has had on the Coachella Valley Real Estate Market.  *(Date of Governor Newsom’s Stay at Home order)

Coachella Valley Single Family Homes
PENDING SALES –Coachella Valley Pending Homes Sales

One of many metrics we use to pick up developing market trends is Pending Home Sales.  In 2019 there was an average of 23 units going under contract everyday in the Coachella Valley.  For the first 2 weeks after the stay at home order, people and business froze – no one knew what to expect and as real estate agents, we were legally NOT able to practice Real Estate – so, it’s no surprise that as of May 15, 2020 we averaged 11 homes going under contract per day.  That’s about a 52% decline in the number of sales from one year ago.  Eventually, Governor Newsom added the practice of real estate to the list of “Essential Businesses” and since then we’ve started to see a substantial uptick in online home buyer activity.

 

Coachella Valley Home Price per Square Foot

 

 

PRICE / SQ FT – 
Interestingly for Single Family Homes,
May 1, 2019  the average price / sq ft was $244.  This year it’s $238 / sq ft.
Down just 2.4%.  Prices are showing only a small downward bias.

 

 

 

Coachella Valley Housing InventoryINVENTORY – 
Inventory is actually down from one year ago.  May 1, 2019 we had 3,636 units for sale, but inventories had been down since November 2018, (prior to COVID).  Inventories have been hovering around 3,000 units for sale since then. We’re down only about 100 units since.

 

 

Coachella Valley New ListingsNEW LISTINGS – 
No rush to sell.  Net new listings are also down, offsetting the decline in pending sales.  We generally average about 25  new listings / day, (adjusted for seasonal swings).  Currently we’re at about 20 new listings / day.

 

 

CANCELLATIONS –
In a standard market, we average about 5 cancellations / day in the Coachella Valley. Initially, right after Gov Newsom’s Stay at Home order on March 19th, there was a spike in cancellations for about 2 weeks, but we’re now back to the average.  So at this point we’re not seeing a long term affect, as buyer’s (and seller’s too) are feeling more confident.

 

 

Foreclosure SalesNOTICE OF DEFAULT LISTINGS AND SALES  – 
From March 19 – May 15, 2019 there were 4 homes that sold as foreclosure with notice of default.
2020 there are 3 homes in default listed for sale and 2 have sold.

 

 

 

 

DAYS ON MARKET – Housing Time on Market
There has been little effect to the average time on  market.
May 1, 2019 it was taking on average 76 days to sell.
May 1, 2020 is an average 78 days.

 

 

Home Price Discount

 

PRICE DISCOUNTS –
In a standard market, we average 3% discount off asking price. May 1, 2020 we were averaging 3.2% price discount from asking.

Tips How to deal with Low Ball Offers

 

 

 

 

SUMMARY –
Unlike the financial crisis of 2008 where our entire financial system was teetering on collapse with huge spikes in housing inventory, little to no lending activity, and little to no buyer activity – This is a health crisis, our financial institutions are solid and lending practices are open and operating properly and interest rates are again at near historic lows.  True, we’ve seen a decline in the number of sales, but it’s trending up as more and more states and cities open up for business.  And unlike 2008, inventories remain low and steady with prices holding.

I believe we will see a shift away from the “trendy urban lifestyle” that’s been so popular among Millennial’s.  This health scare seemed to be in epic proportions in large cities and relatively small in outlying suburban areas; shining a spotlight on the benefits of living in areas with space.  Both business and their employees have learned they really can work from home and still be productive. The natural next step will be people looking for areas where they can live and work from home but not too far from the office. Far enough away that they feel safe without sacrificing their lifestyle.  And an area with homes they can afford to buy.  The very things that make our Desert an attractive place for people of all ages to live, work and play.

Yes, we may have a bumpy road ahead short term, but people buy and sell homes everyday for a million different reasons – I do not see this lasting as a long term market problem. There’s pent up demand waiting to get back into the swing of life and doing business. I’m optimistic for the future of our Coachella Valley real estate market.

 

Coachella Valley Real Estate Market Report 2019

2019 Coachella Valley Annual Real Estate Report
and 2020 Projections  

Coachella Valley Real Estate Market Update

 

Coachella Valley Real Estate Market
Our market has become more year round with the number of sales during the summer months exceeding sales during “season” in the past two years running.

 

 

 

WHO WERE THE HOME BUYERS
Remote Owners represented 50% of our home buyers who were looking for a second home or investment property.  Nearly 68% of those Remote Owners came from other California cities, followed in numbers by Washington state. Canadian Home Buyers are making an appearance again, with 14% of the Remote Owners coming from Canada.

Coachella Valley Real Estate Drive from LA to PSHome Buyers from other metropolitan markets; especially our drive markets such as Los Angeles, Orange County and San Diego see great value here in  Coachella Valley Real Estate.  Baby Boomers are cashing out from other areas, and looking for a Lifestyle in their retirement; that’s largely what’s driving home sales in the Coachella Valley.  Our sunny blue skies are pretty inviting, compared to snow and rain in other parts of the country.

See All of the Homes for Sale in the Desert HERE

WHAT WERE THE HOME BUYERS LOOKING FOR?

Coachella Valley Real Estate Home Buyers want Smaller HomesBigger is not necessarily better in the case of our home buyer demographic.  Aging Boomers want a simpler lifestyle and a home that requires less maintenance.  Great Room Living, Each Bedroom with en-suite baths, Master Suite separate from the Guest Bedrooms, No Stairs and Light and Bright inside – with the current design trends showing Sleek White Gourmet Kitchens. Outdoor Living is a Must with Covered Outdoor Seating and Outdoor Kitchen / BBQ, most home buyers want a private pool and Views.

HOME BUYERS WANT TO BE WHERE THE ACTION IS

Coachella Valley Real Estate Vision San PabloWith more and more commercial development and signature events going on here in the desert,  growth is on a fast pace and home buyers want to be where the action is. The Coachella Valley has an attractive lifestyle and home prices are a bargain comparatively speaking.

 

COACHELLA VALLEY REAL ESTATE BY THE NUMBERS
Coachella Valley Real Estate The Numbers
2019 Coachella Valley Real Estate had 9,787 sales.  That number is down about 5% from the 10,295 units that sold in 2018.  The reason is mostly due to a lack of inventory, (3.9 month supply of homes on the market), but price sensitivity is also a factor.

 

VALLEY HOUSING INVENTORY

Coachella Valley Real Estate Housing Inventory

January 1, 2020 there were 3,200 units for sale vs 3,398 units for sale January 1, 2019. The valley median price for detached homes was $425,000 up 9% in 2019.  Median prices for attached homes was also up, 2% at  $279,000.

 

 

The Luxury Home Market has seen in increase in both home value and sales.  The California Desert Association of Realtors reports in the million dollar plus market, there was a 22% increase in sales in the 4th quarter of 2019.

CHECK OUT THESE LUXURY RESORT PROPERTIES

Coachella Valley Luxury Country Club Sales  2019 vs 2018
COUNTRY CLUB 2018  SALES   2018 AVERAGE SALE PRICE   2019
SALES
  2019 AVERAGE
SALE PRICE
 
Andalusia 32 $ 1,439,578 27 $ 1,581,415
BIGHORN 36 $ 3,892,153 31 $ 3,688,519
Eldorado CC 4 $ 1,713,750 16 $ 2,260,250
Indian Wells  CC 45 $ 1,154,953 23 $ 1,044,192
Ironwood CC 22 $    958,364 18 $ 1,422,800
Mission Hills CC 30 $    914,666 44 $ 1,043,920
Mountain View 42 $    881,012 25 $    866,619
PGA West 121 $    890,691 111 $    964,449
Tamarisk CC 14 $ 1,090,643 12 $  1,181,742
The Citrus Club 46 $   871,464 48 $    900,020
The Hideaway 28 $ 2,434,571 44 $  2,467,545
The Madison 8 $ 6,275,000 6 $ 6,529,167
The Palms 9 $    873,333 9 $    821,555
The Reserve 11 $ 1,750,000 14 $ 2,176,607
The Quarry 2 $ 2,856,750 2 $ 2,492,500
Thunderbird  CC 7 $ 1,640,000 5 $    721,800
Toscana CC 37 $ 1,965,600 38 $ 2,171,903
Tradition GC 22 $ 2,409,431 22 $ 2,449,045
Vintage CC 11 $ 3,271,818 13 $ 3,081,154

 

National Housing MarketThe National Real Estate Outlook
Home prices increased across the country in 2019 and experts predict the National Housing Market will remain strong through 2020 in the January Forbes article: “Five Housing Market Predictions for 2020” they cite crazy rents in the luxury apartment market is driving Millennials to buy instead of rent.  More aging Baby Boomers are expected to sell their homes looking to transition into smaller homes with less maintenance.  Some estimates say as much as 27% of the housing inventory in the country could hit the market between now and 2040, easing the housing shortage.  The National Association of Home Builders report home builder confidence is at a 20 year high, paving the way for a boom in new home construction.  That combined with low mortgage rates the outlook for 2020 is strong.

CA Homes Map

California Real Estate Outlook
The median home price in California was up about 4.1% in 2019, while the number of sales were down slightly.   The California Association of Realtors forecast a similar uptick in prices through 2020. Housing affordability, (just 32% of households can afford a median priced home),  and low inventory have been an ongoing challenge in California, mortgage interest rates at near historic lows are giving home buyers more buying power.

 

 

 

Get In Touch

  • Cathi & Ben Walter
  • REALTOR ®
  • 44530 San Pablo, Suite 101
  • Palm Desert, CA 92260
  • P: (760) 218 – 5752
  • E: Cathi@DesertAreaHomeFinder.com
  • CalBRE# 01346930

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