2019 Coachella Valley Annual Real Estate Report
and 2020 Projections
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.
Home 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.
WHAT WERE THE HOME BUYERS LOOKING FOR?
Bigger 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
With 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
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
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 $279,000.
The Luxury Home Market has seen in increase in both home value and sales. The California Desert Association of Realtors reports in the million dollar plus market, there was a 22% increase in sales in the 4th quarter of 2019.
|Coachella Valley Luxury Country Club Sales 2019 vs 2018|
|COUNTRY CLUB||2018 SALES||2018 AVERAGE SALE PRICE||2019
|Andalusia||32||$ 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|
The 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.
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.
The Coachella Valley Real Estate Market is Strong.
When we look at prices now compared to one year ago, we see that detached home prices are up 4.6% and attached home prices are up 7.3% from last year. Eight of Nine Valley cities saw a price increase.
The total number of sales have slowed a bit from last year, down about 5.3%. Detached homes were down about 4% while Attached homes, which saw a bigger price increase, has had a bigger dip in the number of sales, down about 7.6%.
When we look at the number of sales by Price Range, we see that the majority of the sales are between $200,000 – $500,000. The largest dip in number of sales is in the $800,000 – $1m price range, then picking up again over $1m. However, when we compare the number of sales year over year by price bracket, we see that the largest dip in the number of sales in 2019 was below $400,000. From $500,000 and up the number of sales were at about par over last year.
Currently there are about 3,600 homes listed for sale in the Valley, about the same as this time last year. This is a seasonal market; you can see the pattern on the chart below. We reach our lowest inventory levels in September every year and gradually increase to an annual peak in February and March.
Breaking down the inventory levels; it’s no surprise that the lowest inventory levels are in the $200,000 – $400,000 price range. The month’s supply starts climbing over $500,000. Based on the current number of homes listed for sale divided by the number of sales each month, if no new inventory entered the market, we see there is a 6 month supply in the $500,000 – $600,000 range. About a 7 month supply for homes priced between $700,000 – $900,000 and a 13 month supply for homes priced over $1m.
Based on price trends, the number of sales, inventory levels and low interest rates, we can say the Coachella Valley Real Estate Market is Strong. The trends we see suggest that we will continue to see a strong real estate market throughout 2019 and into 2020.
If you would like more detailed market information about your city, your community, or your home specifically, give us a ring – we’re on standby to help. (760) 218 – 5752