Market Watch - Greater Palm Springs Area
At the end of August the median price of detached homes throughout the Valley was $365,000, which is $15,000 or 4.3% higher than last year. As the chart clearly shows the last four months has brought the price back near the 4% per year growth curve, a level it has oscillated around for the last four years. Attached home prices throughout the Valley are finally beginning to show some strength after four years of little gain. This is seen in the $13,925 or 6% increase in the median price compared to a year ago. The year over year change in the median price of detached homes in the nine major cities shows eight cities higher and only one –Rancho Mirage – lower. The largest year-over-year gain is La Quinta at 13.9%, followed by Cathedral City at 9.1% and Palm Springs at 7.9%. In August the twelve month average of total sales hit 813 units, which is the highest level of sales since November of 2012! Detached home sales are up 16% while attached sales are higher by 13.7%. On September 1st the Valley’s “months of supply” ratio reached 3.9 months, the first time it has fallen below four months since 2013! This is the combined result of lower inventory and a higher sales rate and, as we’ve said before, is a fundamental sign.
Prices throughout the Valley are following the seasonal pattern of giving back some of the price gains earned during the strong spring season. Even so, the median Valley price at the close of July was $374,000, which is 6.8% higher than $350,000 last July. After three years of sideways price movement, attached home prices are showing some strength. This is seen in the year over year gain of the median attached home price, which ended July at $250,000, a 4.5% increase over last July. The year over year change in the median price of detached homes of the nine major cities shows a wide dispersal of results – from +11.5% for La Quinta down to -7.8% for Indian Wells. Palm Springs, with an 8.9% gain, is now only 2% below its all-time high of $600,000. In July, detached home sales averaged 606 units a month over the last three months. This is a 12% increase over a year ago. On August 1st the “months of supply” ratio was 4.2 months. This low reading is the result of the combination of lower inventory and a higher sales rate and is a fundamental sign of a strong housing market. This is confirmed by a low DOM of 73.5 days averaged over the last three months.
The Valleys’ median price for detached homes was $380,000 at the end of June, an increase of 7.8% over June of last year. The median price for attached units was $256,500, up 3% over a year ago. At the city level, six cities show price gains for detached homes, while three are lower. Indio has the largest gain of 8.3% followed by La Quinta with 6.6% and Cathedral City at 6.1%. In the attached market five are higher and three lower. By size, Cathedral City is up 9.7%, Rancho Mirage is up 8.3% and La Quinta higher by 7.5%. Valley homes sales continue to expand. Over the last three months sales of attached homes are up 12.7% while sales of detached homes are up 16.2%. This brings the monthly average of three month total sales to 1003 units, 14.9% above last year and the highest since June of 2013. With the consistent increase in sales and the decline in inventory, an important inventory metric called “months of sales”- the ratio of inventory to the sales rate – fell to 4.6 months on July 1st. One year ago it was 6.1 months. This strong improvement is confirmed by “days on the market”, which is the indicator that monitors how long homes are staying on the market. It is currently 74 days, which is 15 days less than 89 days last June.
The median Coachella Valley price for detached homes was unchanged from last month at $389,000. This represents a $39,000 increase or 11.1% gain over last year. The median Coachella Valley price for attached homes rose to $260,000 in May, finally breaking out above $250,000 which had been its limit for two years. The median price for detached homes in six of the nine major Valley cities showed positive year over year returns. The six positive returns ranged from 11.7% for Desert Hot Springs down to 3.8% for Rancho Mirage. One city, Coachella, was unchanged price wise and two cities had negative returns-Palm Desert was down 1.3% and Indian Wells down 5.2%. Attached home prices were a mixed bag; four cities had positive year over year returns while four were negative. Total three month sales have now surpassed 1,000 units a month and are up 20% over last year. Both attached and detached sales are participating in this sales expansion. Detached sales are up 21% while attached sales are up 19%.Inventory continues to improve. On June 1st it stood at 4,113 units, which is 849 units less than last year. With lower inventory and higher sales, the “months of supply” ratio on June 1st stood at 5.2 months. A year ago it was 7.2 months. The DOM ratio for May confirms this improvement going from 93 days a year ago to 74 days today.
The Coachella Valley median price for detached homes hit a high of $389,000 in April, a price not seen since 2007.This is two strong back-to-back price increases clearly visible on the chart and represents a 11.4% gain over a year ago. Attached home (condominium) prices continue to lag in the Valley. The median value in April was $250,000, just a thousand dollars over April of last year. When we calculate city median prices for detached homes, we see seven cities with positive year over year gains and two cities, Rancho Mirage and Coachella, with negative returns. The positive returns range from highs of 24.8% for Desert Hot Springs and 10.2% for Indio, down to 1.2% for Palm Springs. All cities except Coachella and Desert Hot Springs have substantially higher sales over last year. In order of increasing percent: Indio is higher by 14%, Palm Springs is higher by 16%, Palm Desert is higher by 26%, La Quinta by 30% and Rancho Mirage sales are up a whopping 40%. With continuing lower inventory and higher sales, the “months of supply” ratio has fallen from 8.0 months on May 1st a year ago down to only 5.8 months this year. This is a tremendous improvement in only one year in this very important metric. It’s confirmed by its companion time metric, “days on the market”, which is now down to only 71 days.
The major housing metrics continue to display positive trends as the season unfolds. The median price for the Valley’s detached homes in February was $345,000, which was 4.5% higher than a year ago. The median price of the Valley’s attached homes in February was $240,000, which is unchanged from last year. The yearly change in the median price of detached homes in the major nine cities also shows distinct positive trends. The three month average of total sales in February shows 695 units per month, which is 17% higher than last year. Detached sales, at 459 units, are 16% higher than a year ago, while attached sales, at 235 units, are 20% higher. On March 1st there were 4,969 units listed, which is almost 1,000 less than March 1st of last year. This positive trend seems to be primarily the result of the increased level of sales we’ve experienced over the last six months, which has prevented the inventory from building up to high levels during the off season like it did last year. On March 1st higher sales and lower inventory combined to produce a lower “months of supply” ratio. It was 6.6 months compared to 8.7 months last year.
- November 2016 Report
- Median price $336,500 up 2.3% from a year ago
- First indicator of a strengthening Housing Market
- Second indicator is lower inventory from last year
- 5 cities with positive gains and 4 with negative
- Positive: Coachella, Desert Hot Springs, La Quinta, Indio and Palm Springs
- Negative: Cathedral City, Palm Desert, Indian Wells and Rancho Mirage
- Coachella Valley Inventory too high for continued price stability
- The Standard Economic Housing Model versus the Coachella Valley
- Current Coachella Valley Housing Inventory by Price Range and Remote Owners
- Bottom Line - The Coachella Valley is deep into a Buyers' Market and this is a great time to buy a primary home or invest in a future home, second home or a vacation rental home.
- New and existing home sales remain low
- The High End Market
- Coachella Valley Median Home Price December 2002-2015
- Why some Canadians are selling
- Uniqueness of Coachella Housing Market compared to other Southern California counties
- Coachella Valley's remote owner market is larger than its resident market
- US primary home location of remote buyers
- Demographic and Housing data by city