Market Report for the Coachella Valley
1/4th of U.S. Markets Lost Value Year-over-Year
It doesn’t feel right.
102 out of the 400 major real estate markets in the U.S. experienced ‘real’ decline in home value Year-Over-Year… they didn’t even keep up with inflation.
NO ONE is talking about this.
I’m not saying the sky is falling, but your antennae should be on ‘high alert’ if this trend continues.
It’s TIME TO REALLY PAY ATTENTION to your LOCAL markets.
The Palm Springs area, aka the Coachella Valley, has seen a sales increase in the number of homes sold. What is not shown, is that the reason for this sales increases are price reductions! Prices in most areas of the desert have ped by as much as 30% and are still way below 2007/2008 prices.
The average selling price that is quoted is skewed and misleading. To obtain an accurate average selling price, that specific community and the sales therein, need to be analyzed just as a bona fide appraiser would determine.
Bottom line, there are some truly outstanding buying opportunities available especially now as it is “out of season”.
Palm Springs $320,800 Cathedral City $252,400 Rancho Mirage $475,700
Indian Wells $680,500 La Quinta $378,200 Indio $262,500 Coachella $202,300
Desert Hot Springs $176,700 Idyllwild $259,200
The desert has two overlapping buyers. Those that are owner occupied and driven by affordability, wages, employment and population growth; and those that are second home buyers/investors, driven by wealth, expected appreciation gains and expected rising incomes. The second buyer market is optional and predicated on consumer confidence in the economy and increasing wealth that provides these buyers the opportunity to invest in our resort-like market. If we look at Palm Desert as an example, 61.3% are homes are remote buyer owned (second home buyers). Of this 61.3%, 73.5% are condominiums and 46.4% are single-family home.
Palm Desert is the leader in total home sales for the first quarter this year, up 34% from a year ago. For single family detached homes, Palm Desert is still off 30.9% in sales price from its all-time high in 2006. Palm Springs is off 2.7%, the lowest in the desert. Palm Springs continues to remain a strong market. La Quinta and Rancho Mirage are both experiencing 39.3% and 35% increases in home sales compared to a year ago and they are 26.7% and 29.7% respectively off their all-time high home values in 2006. Indian Wells is experiencing less than a 1% increase in home sales and still off 32.2% from their all-time high sales values in 2006. All of the nine desert cities experienced an increase in home values this year except for Rancho Mirage which is off 5.9%.
In the Coachella Valley, attached homes remain a tougher market with only four of the nine communities seeing an increase in home values. They are all off 28.3% to 60.8% from their highest home values in 2006. These attached homes are 3.8% higher in value than last year but off 1.5% from three years ago.
New homes sales for the valley show fifty-six active projects with five planned projects being added in 2017. Add the high number of vacant lots (4289) and projected sales of 762, the new home sales market will remain a slower market this year.
Recent reports announced that home values were 9.5% higher than last year. Not all areas in the Coachella Valley are improving at the same pace so this general statistic can be misleading to many. In 2016, ten homes sold for over $7 million, up from one in 2015. The increased demand for the higher priced homes automatically raises average home prices to a somewhat distorted number.
Some country clubs are experiencing an increase in number of homes sold and higher prices while others are selling more homes but for less than a year ago and at reduced prices.
Thanks to D. Williams for certain info.
Blog Archive2019-04-22 09:23:20
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