AUGUST REAL ESTATE ACTIVITY:
As with other regions in California, sales of single family residences in our Coachella Valley have been surging. Last month, pending sales of detached homes averaged 22 units per day, compared to 16 a year ago, which is an increase of 36%. The daily averages, according to the August Covid-19 Desert Real Estate Report, indicate that sales are beginning to flatten out as they are in other California regions. A flattening would be good since it means sales of detached homes in our area are at least maintaining their recent high level.
Sold: 135 Vista Valle S.
Total Sales and Sold Prices Rise
The combination of exceptionally low inventory and rising sales is having a profound effect on our valley’s home prices, especially for detached homes, according to Market Watch’s August Desert Housing Report published by the California Desert Association of Realtors.
At the end of last month, the median area home price was $495,000, which is 20% higher than last year.
However, since the median value is a statistical calculation, not all of the gain is from price appreciation; 15% is from price gain and the other 5% comes from the fact that the gains in the $500,000+ bracket were 5% larger than last year.
With so much sales activity focused on higher-priced homes, the largest declines are in lower-priced homes, specifically homes priced under $300,000. This is due primarily to low condominium sales, which are mostly in this price range.
Nevertheless, last month’s median condo price of $289,000 is an increase of 4% from a year ago.
Average Price Per Square Foot Increases
Sold: 81385 Avenida Montura
Year-over-year the average price per square foot of a single family residence is up 10% to $252 $/SF while that of the average condo is up 6% to $215 $/SF.
However, while sales have been surging over the last few months in the greater Palm Springs area, they haven`t resulted in surging prices.
The Coachella Valley’s average $/SF for single family residences and condominiums are approximately the same as they were on March 19, the start of California’s quarantine.
Home Inventory Lower
On August 1, the total area home inventory hit an annual low: 2,013 units. A year ago, the home inventory was 2,722 units. Since March 19, inventory is down by 33%, or 1,000 units, and most of the drop occurred in the last two months.
With surging sales and a record low home inventory, it’s now not uncommon for sellers to receive multiple offers.
Sold: 50760 Mandarina
Such a situation, along with record low interest rates, is creating a massive overbalance of demand versus supply; in theory, that means much higher home prices should happen soon.
The report concludes, “That this (surge) should occur during a major, national pandemic is truly amazing.”
Detached Home Sales Higher
Average total sales over the last 12 months, which takes out all seasonality, is only about 4% below last year’s average.
The 12-month average of detached homes is higher by almost 2%, while that of attached homes is down 14%.
Sold: 34885 Staccato Street
Lowest Inventory Ever
On September 1, there were only 1,959 homes for sale, the lowest number on record. Such a low number is only half of the situation that has been driving home prices higher and causing multiple offers.
The other half is surging sales. Demand is greater than supply, which is creating the price push.
Because of growing sales and a record low inventory, the “month of sales” ratio (how long it would take to sell the entire inventory at its current sales’ pace) is at a record low of 2.5 months.
Fall Renovation Trends
The Wayfair Professional team recently put together this great one-pager on the must-have reno trends handpicked by their experts for the fall season. Click here to see: Contractor: Fall Renovation Trends.. They`re fun and interesting.
September`s Riddle: What number should be next in this series: 9, 16, 25, 36?
August Angst: You buy 10 shrubs. How can you plant them in five rows with four in each row?
Answer: Plant them in the shape of a five-pointed star with four shrubs in each line, one at each point and the others at each intersection.
Kudos to Arnold Choy, Ellen Gold, Mary Lee Niethold, Jhan Schmitz and Paula Young who figured out the puzzle.
We have donated $40 to the Galilee Center in honor of the winners as well as $10 at Jhan Schmitz`s request in memory of Marti Bright, our Avenida Santa Carmen neighbor who recently passed away.
For the first five correct entries, we donate $10 in each of the winners` names to the Galilee Center in Mecca which assists farm-workers and those who`ve lost their jobs during the pandemic.
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 California. To sell your home safely in the shortest possible time at the highest possible price, call 760-219-1450