Our first quarter 2021 Coachella Valley real estate market recap dives into the trends shaping the desert real estate market. With the first 3 months of the year in the books, there is a lot to cover in the current frenetic environment. Since we are still in unprecedent territory with our market, we will also take a look at the March numbers to examine short-term trends that are having a direct effect on market direction. Just like our other real estate market recaps, the numbers below are comprehensive of the Coachella Valley. If you are interested in learning more about a specific city, community, or neighborhood, please reach out to your local Bennion Deville Homes real estate professional. We look forward to unlocking possibilities for you.
The first quarter 2021 numbers show a market that is experiencing a set of extreme conditions, which are having a direct impact on all key categories. A historically low level of inventory across all price points in the desert is causing homes to sell quickly, often before they reach the MLS, and for top dollar. Other byproducts of slim inventory and feverish demand are a surging average sale price, a quickening sales pace, and a razor-thin listing discount, indicating sellers are getting closer to asking price than in previous periods. With under a month of inventory to satisfy the market, buyers are running up against multiple offer situations and need to act quickly on a property they want. On the flip side, homeowners who are thinking about selling should seriously consider listing now. As state and local health restrictions continue to relax, there is an anticipated backlog of inventory ready to hit the market, which could lead to a course-correction in home prices in the coming months. Now is the time to get top dollar for your home and capitalize on the current market conditions which are very favorable to sellers.
This past quarter (January 1 through March 31) saw 3,151 homes sold, a 28.6% increase over the same period last year but a slight 2.8% drop from the prior quarter. Those home sales accounted for a 60.6% surge in closed sales volume year-over-year, and a 6.5% bump quarter-over-quarter, capping the quarter at over $2.1 billion. The average closed sale price finished the quarter up 25% year-over-year and 9.5% over the prior quarter, finishing at $672,200. Likewise, the average price per square foot ended at $301.00 valley-wide, a 17.1% increase from last year and up 6.5% from the previous quarter. The sales pace, noted as average days on market, clocked in at just shy of 60 days, a 35.3% decrease (faster pace) from the same period last year and a 7.0% decline from the previous quarter. The listing discount, or sale price versus list price, finished at 98.58% (a 1.42% discount) which is a 2.0% increase over last year and a 0.7% increase from last quarter. The first quarter 2021 ended with 714 homes available for sale, a 76.4% decline from the same period last year and a 53.6% drop from last quarter. Similarly, the quarter ended with only 0.7 months of available inventory, an 81.1% drop from the same time last year and a 50.0% decline from last quarter. A 6-month inventory is considered a balanced market, further illustrating the extreme sellers’ market the desert is currently experiencing.
Examining the March numbers gives us an even better perspective of the short-term trends taking shape in the market. Similar to the quarterly figures, the scarcity of homes for sale is severely impacting all facets of the market. The patterns are similar in shape to the quarterly trends, however, there are certain categories where the numbers indicate an even more exaggerated shift. For example, the listing discount is indicative of just how competitive the market is across the Coachella Valley, with a figure creeping closer to 100%, which would mean homes on average are selling at or just below asking price. Additionally, the months of inventory is down to 0.5, demonstrating that there are weeks, not months, of homes to satisfy market demand. This figure has steadily declined over the last few months, further indicating how high demand is for homes. As with our analysis of the quarterly trends, if you are considering selling your home now is the time. Minimal inventory coupled with high demand for desert real estate puts you in line to maximize the return on your investment and get top dollar for your property.
Valley-wide there were 1,363 homes sold in March, a 46.1% increase from last year and a 50.3% increase from the prior month. Those home sales accounted for just shy of $947 million in sales volume, a 92.8% increase over March 2020 and a 53% increase over February 2021. The average sale price ended the month at $694,800 – a 32.0% jump from the same month last year and a 1.8% nudge up from the prior month. Similarly, the average price per square foot finished the month at $309.50, a 22.6% increase year-over-year and a 2.1% bump month-over-month. The sales pace, or average days on market, finished at 54.4 days, a 45% drop (faster pace) from last March and a 13.9% decline from the previous month. The listing discount, noted as sold price versus list price, ended the month at 99.06% (a 0.94% price discount), a 2.5% jump from the same period last year and a 0.6% increase from February of this year. The month ended with 706 homes for sale on the market, a 76.5% plummet from the same month last year and a 20.6% drop from the month prior. There is only a 0.5-month supply of homes on the market, an 84.4% decline from last March and a 50.0% drop from February of this year.