Fueled by an historically low home inventory and surging demand sparked by a mass exodus from larger cities and major metro areas, the Coachella Valley market is riding a housing wave into 2021 unlike any we’ve ever seen. Here are the January figures published in The Desert Housing Report by the California Desert Association of Realtors.
In Escrow in 10 Days
81189 Calle Orfila
Offered at $479,900
Pristine, move-in-ready 3BR / 3BA Gathering model at Sun City Shadow Hills, an award-winning active adulty community. FLEXIBLE, WIDE OPEN SPACE with energy efficiency extras built-in! Tall, wood kitchen cabinets, stainless appliances, big center island kitchen with seating are central to the sweeping, open great room. South wall windows offer views of the Santa Rosa mountains (snowcapped at the moment!) and a well-landscaped, expanded patio area. an 8` EXTRA DEEP GARAGE to hold 2 cars plus a golf cart. Shadow Hills has low dues that include use of both clubhouses and fitness centers, tennis, pickleball, events, clubs and broadband internet. And there’s discounted golf at Championship and Par 3 courses, too.
Median Sales Price of Homes Increased 22% Over Last Year
In the Coachella Valley, the sales` surge and resulting price increases that began mid-summer are showing signs of leveling off. In January, the median price of a detached home was $525,000 and it`s been in the same price range for the last three months. Nevertheless, it`s still up 22% over last year.
Year-over-year, median detached home prices among valley cities are up 20% or more. Ranking the median price gains from largest to smallest, the cities with increases over 20% were Indian Wells, Palm Springs, La Quinta and Cathedral City. With median price gains over 20% in the attached market are Indian Wells and La Quinta.
Last month, the median price for attached homes in the greater Palm Springs area was $335,500, an increase of nearly 20% from last year’s median price of $280,000. Median prices for attached homes have yet to reach their 2006 highs although detached homes have.
Stunning, updated home with 2BD/2.5BA, den, fireplaced great room and formal dining or 3rdBR. Updates include: huge walk-in marble & tile shower with 2 showerheads & bench in MBR; big center island kitchen with Bosch dishwasher, French-door refrigerator, modern cabinet hardware & cabinets with roll-out shelves; wood-look & Italian porcelain tile throughout home; deep, private backyard with gorgeous plantings & built-in BBQ island; pocket garden & fountain views from dining room, plus year-round sun, sunrise and sunset from an expanded front courtyard. Also, recent entire A/C & furnace as well as storage cabinets and real A/C in garage.
We received many calls and multiple offers for this Castellano model. Call us if you want to sell your Castellano safely, quickly and for the highest possible price.
October-December Home Sales Reach All-Time High in Valley
In our valley, the seasonal pattern of home sales is well-known -- low numbers in October and highs in May.
However, unlike our traditional pattern, sales have been at all-time highs from October to December and just now appear to be leveling. The three-month moving average showed total sales of 1045 units a month, which is 46% above last year`s numbers.
The report said, “As we move into spring, we expect sales to remain near these levels."
The sales’ increase has been primarily in the second-home resort cities and not the cities primarily housing working families, such as Cathedral City, Desert Hot Springs, Coachella, and Indio. In these cities, sales have changed little from last year.
The largest sales increases are in four cities with Indian Wells up 138%, La Quinta up 65%, Palm Desert up 60% and Rancho Mirage up 54%.
$400K - $600K & $1 million+ Homes Largest Price Increases
When reviewing home sales in different price brackets, the largest sales’ increases are again in the $400,000 to $600,000 range and in the $1 million or more price bracket.
San Benito model on steroids! Kitchen remodeled with quartz counters and stainless appliances. Recent neutral paint inside and out. Recent spacious front courtyard. Recent HVAC top-end system. Master bath totally remodeled with new soak tub and handsome flooring, tiling, cabinetry and lighting. Garage with A/C and insulation. Spool, built-in BBQ, fire-pit and alumawood patio cover on back patio.
Home Inventory Shrinking
On February 1, it was at 1,283 units while last year it was 3,202 units for a whopping 60% drop. Such an abnormal decline is happening in many other areas of California as well.
The report suggests that some owners may be reluctant to list their homes until Covid-19 vaccines are more widely distributed.
The “months of sales” ratio measures how many months it would take to sell the entire inventory at its current sales rate. This ratio is currently at 1.4 months, which is again at an all-time new low.
The median of days in the market in January was 39 days compared to 51 days a year ago.
Also of interest, the January median value for “Sale Price Discount from List” was -0.8%, which continues the significant improvement since August.
In addition, one out of every four sales are now selling for more than their asking price.
Interior Decor and Staging Help
When you think of your ideal living room, do you think A - neutral zen or B - comfy cozy with your best friend? Email me at email@example.com
and I’ll help you get started on your living room.
Bonnie Steele, CSP
Bonnie and Hank Steele began work as Realtors in 1983, They have successfully listed, staged and sold homes in suburban New York City, St. Simon`s and Sea Island, Georgia, and the Palm Springs area. To sell your home safely in the shortest possible time at the highest possible price, call 760-219-1450