Our April 2021 Coachella Valley real estate market recap provides an overview of what’s happening around the desert housing market. We are going to compare and contrast the data on an annual and monthly basis to better identify overarching trends. Please note that the numbers below are representative of the entire Greater Palm Springs Area. If you would like to learn more about a specific city, community, or neighborhood, please reach out to your local Bennion Deville Homes real estate professional. We will Unlock Possibilities for you.
Comparing data year-over-year, we observe the same patterns as we have seen over the last few months. Historically low inventory and extreme demand are squeezing the market, creating escalating prices, a lightning-quick sales pace, and an average listing discount that is fast-approaching no discount at all. With home sales more than double compared to the same month last year and the sales pace taking nearly half the time to sell a property, there is proof that homes are hitting the market, they are just selling really fast.
However, we need to add some additional context to understand what’s truly happening within the market. The year-over-year numbers are somewhat misleading for a couple of reasons. Pent-up demand is showing itself in conjunction with numbers skewed by the fallout from local health and safety regulations, which were installed in March 2020. These extreme figures do not provide the best baseline due to the sudden pause of the market during the first few months of the 2020 pandemic. The April 2019 numbers are still well beneath this year’s (17% more homes sold in April 2021 than April 2019) but represent a more “typical” snapshot of production. These extra sales in 2021 versus 2019 indicate soaring demand and better indicate the true bump in activity in the April market.
On a monthly basis, there is a slight regression in price and activity, even as inventory shrinks further. Whether this is a sign of a slowing market due to buyer hesitation over sticker shock remains to be seen. As we head into the summer months, it will be fascinating to monitor how the month-to-month data shows the direction of the market. With home prices generally rising, will we reach a point where buyers wait for sellers to join the listing party and to drop prices, or will strong demand sustain our feverish pace? We will just have to wait and see.
There were 1,228 homes sold in the month of April, a 119.3% vault year-over-year, but a 10.4% drop month-over-month. These sales resulted in a sales volume of over $842 million, a 177.4% leap compared to April 2020 but an 11.3% drop from March 2021. The average closed sale price finished the month at $686,000 – a 26.5% jump compared to the same month last year, but a slight 1.1% drop from the prior month. Similarly, the average price per square foot finished the month at $315.00, a 26% increase year-over-year and a slight 1.8% nudge upward month-over-month. The sales pace, noted as average days on market, clocked in at 48 days on average to sell a home, a 44.9% drop (faster) than April 2020 and an 11.5% decline from March 2021. The listing discount, noted as sale price versus list price, finished the month at 99.6% (representing a scant 0.4% discount on average), a 3.8% jump from the prior year and a 0.5% increase from the previous month. April 2021 ended with a razor-thin 658 homes for sale on the market, a 77.1% plummet from April 2020, and a 6.8% decline from March 2021. Dividing available inventory by homes sold, we arrive at a slim 0.5 months of inventory on the market, a 90.2% drop from the same period last year and no change from March of 2021. A 6-month supply of homes is considered a balanced market, so having what amounts to a couple of weeks of inventory demonstrates how extreme market conditions are across the desert. In this situation, sellers are favored as demand far-exceeds the supply of homes.
As the numbers and analysis above demonstrate, we are in an extreme sellers’ market. Anyone who is thinking about putting their home up for sale should strongly consider cashing in now. If you would like to learn more about what your home is worth in today’s market conditions, please connect with your local Bennion Deville Homes real estate professional.
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