August 2020 Coachella Valley Real Estate Market Recap
The Coachella Valley real estate market continued its hot ways with surging demand, cratering inventory, and prices rising as a result.
The Coachella Valley real estate market remained sizzling hot in the month of August.

Our August 2020 Coachella Valley real estate market recap reviews the major market trends taking shape around the Southern California desert. This summer is cementing its place in the history books as one of the busiest and most productive “off seasons” in the history of desert real estate, and August continued to solidify that sentiment. As with our previous months’ recaps, we wanted to look at the month-to-month shifts in addition to the year-over-year differences in the market to paint a more accurate picture of where the market is truly heading. Each of our market reports contain numbers and analysis that are representative of the entire region. If you would like to learn more about the market conditions of a specific city, community, or neighborhood, please reach out to your local Bennion Deville Homes real estate professional. We look forward to opening doors and unlocking possibilities for you.

Maintaining a strong sales pace in August, the Coachella Valley real estate market has seen massive gains across the board. With demand reaching an astronomical apex and inventory at historic lows, the resulting competition in the market is creating a surge in home prices. August saw more home sales than both July 2020 and the year-over-year comparisons, with dramatic shifts in average sale price in tow. The market pace (noted as average days on the market) slowed down, which may be something to keep an eye on; however, the listing discount (calculated as sale price divided into list price) indicated buyers with the winning offers were paying closer to asking price on the whole than in previous months. The real story with these numbers is the dwindling inventory, which is at an extreme low of only 1.8 months to meet demand. We will keep tabs on how shifting inventory levels in the coming fall and winter months, traditionally peak season in the desert, will affect home prices. With more people looking to buy into the prime combination of lifestyle and location from parts elsewhere plus buyers seeking different spaces, if you are thinking about selling now might be a huge opportunity to cash in on any equity you may have built up in your Coachella Valley property.

There were 1,066 homes sold in the month of August, a 29.7% bound over the same period last year and a nice 5.2% bump from last month. That activity accounted for a sales volume of nearly $629 million, a 63.4% surge over last year’s numbers and a 16.3% increase from July. A reported $590,000 average sale price of a home in the desert accounts for a 26% increase from the same month in 2019 and a 10.5% boost over July’s average sale price. Likewise, the average price per square foot finished the month at $270.20, a 14.6% increase year-over-year and a 5.6% jump over last month. The sales pace, noted as average days on the market, clocked in at 89.7 days, a slower pace by 19.3% year-over-year and 11% more sluggish than last month’s figure. August finished with 1,935 homes for sale on the market, a 24.8% drop from last year and a 4.7% decrease from July of this year. Overall, there is a minuscule 1.8 months of inventory to meet demand on the market, a 41.9% decline from August 2019 and a 10% decrease from last month.

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