Our February 2021 Coachella Valley real estate market recap spotlights the macro-level trends occurring throughout the desert market. Since the real estate market has been experiencing an unprecedented run of conditions, we are going to look at the year-over-year and month-to-month changes to better identify where the market is heading. As with all of our market recaps, the numbers below represent the entire region. If you would like to find out more about a specific city, community, or neighborhood please connect with your local Bennion Deville Homes real estate professional. We look forward to unlocking possibilities for you.
Examining the numbers year-over-year, the desert market continues to outperform the same period 12 months earlier, as has been the case for some time. Every stat that we track saw an improvement, including a significant increase in homes sold, sales volume, the sales price of homes, time on market, and the listing discount. The sales pace picked up significantly while inventory cratered, which helps explain why home prices are up and sellers are getting closer to asking price for their homes. Fewer properties on the market coupled with incredibly high demand has created more competition for homes. The monthly numbers show signs of improvement as well. There were more homes sold in February than January of this year, resulting in a higher sales volume, and the average sales price of a home in the Coachella Valley also saw a noticeable jump. Inventory continues to be the key metric to watch in our market as we have a historically low number of homes for sale, and the month-to-month numbers show a significant decline in available homes for sale. Recent news about life getting closer to a “return to normal” offers a glimmer of hope, and with it we anticipate a flood of sellers putting their homes up for sale in the coming months. If you want to maximize the sales price of your home, now is the time to list so you can get ahead of this wave of inventory, coming to market as soon as this summer.
The month of February saw 895 homes change hands, a 15.2% leap year-over-year and a 3.6% bump from the previous month. Those sales accounted for almost $611 million in sales volume, a 37.3% jump compared to the same month last year and an 11.7% climb from January 2021. The average sales price ended the month at $682,600 – a 19.2% surge from 2020 and a 7.8% increase from last month. Likewise, the average price per square foot finished the month at a staggering $303.60, a 12.4% increase year-over-year and a 5.9% increase month-over-month. The sales pace, noted as average days on market, clocked in at just under 63 days to sell a home, a 32.5% drop (faster) from last year and a 1.1% dip from January 2021. The listing discount, as indicated by sale price versus list price, finished the month at 98.5% (a 1.5% discount), a 1.7% improvement (closer to asking price) from last year and a 0.6% upward nudge from the month prior. Inventory closed out the month with 889 homes for sale on the market, a 71.1% plummet from the same month last year, and a 28.8% decline from the previous month this year. Overall, there is a slim inventory of 1 month on the market, a 75% drop from the same period last year and a 28.6% decline from January of 2021. A balanced market is considered at 6 months of inventory, indicating that we are in an extreme sellers’ market.