Want to keep up to date on our Real Estate market in the Coachella Valley? Bookmark this page to check back each month for updated numbers and information.
This real estate market report will cover the Coachella Valley area including Palm Springs, La Quinta, Indio, Cathedral City, Rancho Mirage, Palm Desert, Coachella and Indian Wells. Browse current year and past years’ home prices, months of inventory and more.
Also be sure to check our blog for other Real Estate updates/news, local events, informational/educational and tips throughout the year!
In Review – 2019 Real Estate Market
2019 was a year of surprisingly low interest rates and low inventory. And, great news, we anticipate those low rates to continue for 2020 and ending the first year of the new decade at around 3.75%. Just to gauge that a little, my 1st home purchase in 1994, the interest rate was at 7.5% and for that time, everyone was ecstatic for that rate. Today, anything below 5% is considered a fantastic rate. Who remembers the 13% interest rate?
In discussing the overall Real Estate Market, we also must look at:
- Inflation – Currently at 1.8% which is very low
- Unemployment – 3.6% – Historically low
- High Labor Participation – 63.3%
- Consumer Confidence 96+
Since they can have a positive or negative effect on the Real Estate Market, we need to understand these numbers and plan accordingly for your current and future Real Estate needs.
We have experienced 7 straight years of rising prices (sourced by CoreLogic Data (from September 2018-September 2019)
- Riverside County: 3.9%
- Orange County: 2.3%
- San Bernardino County: 5.7%
- San Diego County: 0.9%
- Ventura County: 0.3%
California’s Home ownership Rate hits 9-year High New census data shows 56.3% of households statewide lived in a residence they owned in the third quarter. While that’s the 6th lowest amount the states, its California’s highest ownership level since 2010. Between 2005 and 2009, California ownership averaged 58.5% in an era that saw aggressive lending. From then, as lenders made it harder to get a mortgage and home “affordability” worsened, ownership has averaged 54.7% in the state
The past year’s dramatic reversal in mortgage rates, continued strong job growth statewide and moderating price home-price appreciation seems to have put more Californians into their own homes. For example, home ownership in the Inland Empire hit an 11-year high. In Riverside and San Bernardino counties, 67.7% of households lived in a residence they owned in the third quarter, ranking No. 23 among the 75 largest metro areas, according to the Census Bureau
TransUnion projects a flood of 8.3 million first-time home buyers will hit the market in the next three years, more than in any three-year period in the last decade.
The state of the market differs depending on where you live. Still, there are a few national trends to consider. Here are some statistics to help answer the age-old question, “how’s the market doing?”
3 Weeks: Median length of time recently sold homes were on the market, (consistent since 2017)
Median Home Price: $257,000
Existing Home Sales: 3.9 Months of Inventory in late 2019 (SELLERS MARKET!!!)
Due to lack of construction, new home purchases continue to drop; 13% of homes purchased were new construction – the lowest rate in years.
Recession likely years away
Robert Shiller, American economist and Sterling Professor of Economics at Yale University has stated “recession likely years away”.
Update – March 13-2020
The last recession in 2007/2008 was nothing like any other since the great depression. Think about that for minute. Many of the up and coming home buyers and sellers, this past recessions was their 1st one (one that they can remember and truly experienced). So when they hear the word recession, they get “freaked” out. But let’s face it, recessions are very necessary. Were would we be today is this recession didn’t happen…how many could afford a home, buy groceries, gas,etc? we would have been primed for another “great depression”.
Recession are like pressure cookers and earthquakes. We need to let out some steam or built up pressure to avoid a large disaster. Recessions happen around two times a decade. So we can expect the next one to hit us in the next 2-3 years.
Visual Pricing CMA
Don’t Settle for just a CMA! – Market Evaluations done right!
Real Estate Market Predictions for 2020
NAR Cheif Economist “New home sales will hit a 13-year high in 2020, up 11%, to 750,000. Existing home sales, at 5.56 million, will be the highest since 2017”.
This is something exciting to note: The predicted 2020 existing homes sales of 5.56 million will represent the 4th best Real Estate Market in HISTORY!!! That’s a big deal I think!!!!!
Freddie Mac’s chief economist feels “the steady improvement of the housing market is a reassuring sign that the economy is on solid ground heading into next year,” noting “purchase mortgage applications rose 15% over…a year ago.
Median Price Growth: 4.3% (slightly lower than 2018-2019, but that’s good) – This is a very normal growth and it’s what we want. We already know what happens when we see double digit growth ……..POP go the bubble!
3-Year Loan Rate: 3.75%
Continued shortage of inventory and we will remain in an almost equal buyer/seller market with dips into the seller’s market.
Is it a Good Time to Buy a Coachella Valley Home?
Buyers who are waiting on the fence, may be waiting awhile for “deals” to come back. Instead of waiting for deals, buyers should be thinking of:
- You live in the payment not the price/interest rate. Find out what your “comfort zone” is for your payment and look for homes in that price. If the home fits the location, layout, condition, then you have “found your deal”.
- You live in the floorplan not the square feet. Sometimes buyers get caught up on the size of the home. Never overlook a smaller floorplan in a location you desire. A well-designed floorplan can look and feel larger than a bigger home.
While there can be some correction and/or movement in the market and prices adjust to respond accordingly, we don’t anticipate anything we saw in 2007/2008. So, while you don’t need to rush to buy, you can and should keep looking. Don’t stress about the price and the interest rate, if the payment fits your budget and you love the home, buy it! Waiting, more times than not ends up biting you in the butt.
Is it a Good Time to Sell my Coachella Valley Home?
Depending on your needs to sell, where you live and the time of year, are all factors that help you decide if it’s a good time for you to sell your home.
For 2019, we maintained a seller’s market throughout the year and the trend has continued so far into 2020 and is predicted to stay the same.
Laura Lake Real Estate
Market Evaluations Done Right!
We look at several aspects when meeting with you to determine if the time is right for you to sell. We don’t just look at the market overall, we dive into your needs, reasons and goals. Then we analysis the market for your neighborhood and city to determine the best time to sell that will help you achieve your goals. We have systems to tell you what months the most homes sell in your neighborhood and when they get their highest price. How that work for you in deciding to sell? We don’t just show with a CMA, the common theme among average agent. Laura Lake Real Estate is not your average agent.
We don’t know when we’ve hit the top or the bottom of the market….until it’s over….Laura Lake
Coachella Valley Home Prices – 2020
|Month||Property Type||Sale Price, Median||Property Type||Sale Price, Median|
Home Prices by City – 2020
February 2020 – Market Report
As of February 1st, inventory was as 3,202. As of March 1st, 3,019. Again, looking on year over year, March of 2019 inventory wast 3,909.
We have a downward trend from January to February for detached home prices but when looking year over year, we are up in value by 9.3% for detached home and up 1.8% for attached homes.
Overall, the over housing metrics for the Coachella Valley are the strongest we’ve seen in the last 10 years!
Homes Sales by City, February 2020
Home Sales by Price Range, February 2020
January 2020 – Market Report
As of the end of 2019, all areas with the exception of Palm Springs are still below our 2006 high values.
Inventory continues on a downward trend, as of January 2020, inventory was at 2,998, compared to January 2019 at 3,398.
Year over year, the Coachella Valley inventory has been decreasing for the past 4 years with February 2020 inventory being the lowest number in history for our area.
Due to our seasonal patterns, which shows an uptick in inventory for February, 2020 at 3,202, our inventory should be looked at as a year on year. February 2019 inventory totaled 3,811.
Homes Sales by City, January 2020
Home Sales by Price Range, January 2020
The $400,00 and under priced homes continue to be the hot ticket items. The largest in sales in the past 3 months was in the $300,000 to $400,000 bracket. This may be due to the fat that there is not much in way of available inventory of homes price below $300,000.00
Months of Supply and Days on Market – 2020
|MONTH||MONTHS OF SUPPLY||DAYS ON MARKET|
Coachella Valley Home Prices – 2019
|Property Sub-type||Sale Price, Median|
|Single Family Detached||$425,000|
|Single Family Attached||$279,000|
12 Month Change by City Median Prices – 2019
|Detached Home by City||Dec-19||Year Ago||12 Month|
|Desert Hot Springs||$230,000||$221,500||3.8%|
|City of Coachella||$258,000||$250,000||3.2%|
|Attached Home by City||Dec-19||Year Ago||12 Month |
|Desert Hot Springs||$97,500||$163,000||-40.2%|
Months of Supply and Days on Market – 2019
|MONTH||MONTHS OF SUPPLY||DAYS ON MARKET|