December Real Estate Activity
As area residents know, our valley is a very special place to live. Since the Covid-19 pandemic began, many people from across the United States are coming here from crowded urban areas to take advantage of our laid-back resort lifestyle and the fact that home prices are more affordable than in cities such as Chicago, Los Angeles, Portland, San Diego and San Francisco.
Home Sales & Prices Are Still Increasing
Last month, one out of every four homes sold for more than its asking price.
The median price at the end of the year for a detached home in the valley was $520,000, which is up 22% for the year, according to the December Desert Housing Report published by the California Desert Association of Realtors.
The median attached home price at the end of the year in the valley was $329,000, up 17.9% for the year.
Attached home prices have been surging for five months now, after trailing the price surge of detached homes.
In fact, while detached home prices have stalled somewhat for the last two months, prices for attached homes have continued to advance.
Attached units are now supplying homes in the lower price ranges due to the lack of detached supply.
The median price for attached homes in the Coachella Valley is now at its highest level since 2007.
Major Cities` Sale and Price Growth
TAll nine major cities continue to show year-over-year price gains in their median price for detached homes. Six cities show double-digit gains for median detached home prices.
Detached home prices in La Quinta are up 27.5% for the year, while those for Palm Springs are up 22.9%. Five cities show double-digit gains for attached homes.
It should be noted that three cities -- Palm Springs, Cathedral City and Indio -- now have median prices above their all-time highs made during the housing bubble of 2006.
The city which is experiencing the greatest three-month surge in sales is Palm Desert, with average monthly total sales of 236 units a month. This is 58% more than it was last December.
La Quinta is another city experiencing a surge with sales up 77%. Cities that show smaller increases are Cathedral City, Desert Hot Springs and Indio.
The amazing thing about these numbers, the report said, is that this surge in sales is occurring during a seasonal period when sales are usually very weak.
Big Price Gains at $300,000 or Above
When we reviewed sales in different price brackets, the report`s data showed significant sales increases in all brackets over $300,000.
Percentage wise, the largest sales increases are in the brackets between $600,000 and $1 million.
The utterly amazing number, the report said, are sales of homes priced over a million dollars. That is now averaging 130 unit sales a month, which is 170% above last year.
Home Inventory Shrinking, Shrinking
Coachella Valley active listings on January 1st stood at 1,507 units, which is 50% less than a year ago.
Although inventory usually begins to rise in September, this year the pattern changed when inventory declined as we moved toward year’s end. The report concluded that most of the decline is due to owners reluctant to list and expose their homes to prospective buyers during the pandemic.
The “months of sales” ratio measures how many months it would take to sell off the entire inventory at the current sales rate. At the end of the year the ratio stood at 1.7 months, which compares to 3.7 months at the end of last year. This is the lowest “months of sales” ratio in the history of the Coachella Valley and is due simply to record low inventories and record high sales.
Average “days in the market” is now down to just 38 days.
Top Home Decor Trends According to the Experts
We thought you’d be interested in reading what Kate Holdefehr of Real Simple Magazine reported as the top home décor trends of 2021.
Holdefehr says that after the year we’ve all had, it’s no surprise that home design trends for 2021 focus on comfort -- whatever that means for you. Perhaps, she continues, you seek solace in the clean lines of a minimalist aesthetic (check out Japandi style), or maybe a tufted velvet sofa that reminds you of Grandma’s house and makes you feel at home (get inspired by Grandmillennial style). She describes neon lighting with a modern look, Friluftsliv (the New Hygge), using Doors and Dividers and Earth Tones to create a home that’s comfortable, functional, and most importantly, a reflection of you. For more about the experts’ top 2021 home décor trends, please see our website’s BLOG.
December Deviltry: I have keys that will open no locks. I have a space and a lock that’s a key. You can enter but you can’t leave, and yet -- you can escape. What am I?
Answer: A keyboard
We congratulate Kathleen Dahlman, Ellen Gold, Barbara Ross, Jhan Schmitz and Paula Young. Was that too easy for you? Well, try this one:
January Puzzle: Jack and Jill each have some coins, but Jack has one less coin than Jill. Both of them toss all their coins simultaneously and count the number of heads. What is the probability that Jill has more heads than Jack?
(A) 1 in 4; (B) 1 in 2; (C) 3 in 4, or (D) cannot be determined.
For the first five correct entries, we donate $10 in each of the winners` names to the Galilee Center in Mecca which helps impoverished families with food baskets, rental and utility assistance and other essential needs.
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