The secret about the Coachella Valley is officially out. Tons of positive publicity about the Southern California desert has hit the media over the last few years. The renaissance happening throughout the valley is sparked by the popularity of Palm Springs, and an inventory of homes that includes affordable price points for all buyer types. The needle continues to point in the positive direction for our beloved Greater Palm Springs Area, and 2018 market stats support this upward trend.
According to data sourced from the Multiple Listing Service (MLS), home sales from January to February are up 3.6%, and up 8.6% when comparing 2018 to 2017, while inventory is on a slight decline from January to February at 3%, but down 18.1% from the same time a year ago. This has led to some upward pressure on sales prices, notably where the average price per square foot is up 1.3% across the valley. These numbers take into account the entire 9-city region, so there are some outliers in the data. For a better look at what’s going on within each city, see below:
Bermuda Dunes has had a strong market to start the year, with a 47.4% uptick in home sales compared to 2017, a sharp decline of 35% in inventory, and a 97.1% list price to sale price percentage, which is a 1.1% improvement from last year. Price per square foot is also up 18.4% year-over-year, a result of diminishing inventory and a rise in home sales. To see homes for sale in Bermuda Dunes, click here.
Cathedral City is in good shape to kick off the year as well, with a 12.5% increase in closed sales, sharp 30.6% decline in average days on market, an 13.9% increase to average price per square foot. Cathedral City also has the lowest months of inventory in the Coachella Valley according to the data at 4 months, indicating a firm seller’s market is here. To see homes for sale in Cathedral City, click here.
DESERT HOT SPRINGS
Desert Hot Springs is also off to a hot start to the year, with a 37.5% increase in closed units and 7.4% increase in average price per square foot. DHS is the only city in the Coachella Valley to see an increase in available inventory year-over-year, with a modest 3.5% more homes on the market than the same period of 2017. However, due to sales pace, the months of inventory sits at 8.3, almost 25% lower than the same time last year. To see homes for sale in Desert Hot Springs, click here.
Indian Wells saw the second highest increase of closed sales year-over-year, with a 40.5% jump. The market saw a sharp decline in inventory (21.7%), a healthy 14.7% increase in average price per square foot, and an average sales price that inched over the $1 million price point ($1,086,500). With 8.6 months of inventory to sell, we can’t call it a true seller’s market, yet, but current trends are heading in that direction. To see homes for sale in Indian Wells, click here.
Indio had the biggest drop in closed home sales for the first two months of the year, a difference of 5 total (209 vs. 214). However, of those closed sales the average price per square foot inched up 8.1% compared to a year ago, and the average days on the market dropped 15.8%. Inventory also dipped 7.2% and sits at 5.1 months, indicating a healthy market. To see homes for sale in Indio, click here.
La Quinta is the only other city in the Coachella Valley to see a decline in closed sales compared to a year ago, with a difference of 2 (244 vs. 246). Overall, La Quinta’s market is very strong. Average price per square foot is up by 20.9%, representing the strongest gain of any market in the valley, and inventory is down substantially as well, with 14.2% fewer units available than at this time last year. With 7.8 months of inventory to feed current demand, and a fair decline of average days on the market, La Quinta has one of the strongest markets in the region. To see homes for sale in La Quinta, click here.
Palm Desert is off to a great start to 2018, with a 4.4% gain in closed sales for the first two months compared to the year before and the third-lowest inventory level with just 4.9 months. However, Palm Desert also saw small declines in price per square foot (2.6%), listing discount (95.1% sold vs. list as opposed to 95.4%), and a modest average sales price improvement of 1.3%, the lowest in the valley. With a tightening inventory, however, the Palm Desert market should progress well in the coming months and see gains other cities in the valley are experiencing as well. To see homes for sale in Palm Desert, click here.
Palm Springs continues to ride high as one of the most sought-after cities in the Coachella Valley. Overall, the market saw a 4.3% increase in closed sales year-over-year, with a 6.1% jump in average closed sales price, 3.5% gain in price per square feet, and 1.1% rise in listing discount (sale price vs. list price) to 97%. Inventory is also down almost 20%, and months of inventory sits at 4.9 months, making Palm Springs a slight seller’s market. To see homes for sale in Palm Springs, click here.
Rancho Mirage is in really good shape through the first two months of 2018. The city saw almost 25% more closed sales than the previous year, with those sales tallying a 12.9% gain in average sales price, and a 4.6% increase in price per square foot. Rancho Mirage is bordering on a purely neutral market, with 7.2 months of inventory available. As buyers continue to look for better value with their purchases, especially in the high end, Rancho Mirage’s market will continue to solidify and make steady, sustainable gains. To see homes for sale in Palm Springs, click here.
With the data for all cities looking promising, 2018 is shaping up to be another banner year for real estate. The biggest wild card that could affect the pace of the market is the increase of interest rates. With at least two more rate hikes planned by the Fed, it remains to be seen how the cost of borrowing money will impact the pace of sales and demand for homes. With many buyers purchasing a vacation home in the valley, and many paying in cash, the rate hikes may not have as big of an impact on our desert real estate market as other traditional housing markets.
ABOUT BENNION DEVILLE HOMES
Founded in 2001 by Bob Bennion and Bob Deville, Bennion Deville Homes is one of the top independent real estate brokerages in the nation and serves home buyers and sellers throughout Southern California in the primary markets of the Greater Palm Springs Area (Coachella Valley) and San Diego and Orange counties. Coachella Valley offices include locations in Palm Springs, Rancho Mirage, Palm Desert, Indian Wells, La Quinta. Spring-boarding off the massive success of the company in the desert, Bennion Deville Homes began serving coastal Southern California communities in 2010, with offices serving Orange County in Laguna Niguel, and San Diego County in Little Italy (Downtown), Encinitas, and Carlsbad. Bennion Deville Homes also has a presence in Glendora in Los Angeles County, and Garner Valley, Redlands, and Lake Arrowhead in Riverside County.
The exclusive LUXE Collection program complements the company in listing and selling the finest luxury homes in Southern California, thanks in part to exclusive partnerships with Leading Real Estate Companies of the World®, Luxury Portfolio®, and Mansion Global, creating a strong presence to help high-end properties gain digital and print exposure to an affluent international client base.
For the location of the Bennion Deville Homes office nearest you, visit our website at BDHomes.com. Follow us on major social media platforms, including Facebook, Instagram, Twitter, Google+, and YouTube, @BDHSoCal for the latest local and national real estate and lifestyle news.