Analyzing the Coachella Valley Real Estate Market
Our January 2022 Coachella Valley real estate market recap dives into the broader trends taking shape across our desert resort cities. The analysis below includes comparisons year-over-year and month-to-month to capture macro and micro-level patterns emerging in the market. The numbers and analysis below are a snapshot of the entire Coachella Valley. If you are interested in what’s happening in a particular city, neighborhood, or community, reach out to your local Bennion Deville Homes real estate professional. We will unlock possibilities for you.
Things took an interesting turn to kick off 2022 in the desert real estate market. While the annual numbers remain consistent to the pattern we saw for most of last year – big gains in prices, massive drops in inventory levels, and supporting peripherals such as a faster sales pace and no listing discount – the monthly comparison is eye-opening. Inventory continued its downward trajectory, however, the number of homes sold dipped month-to-month, too. Also of interest is the sales pace, which slowed by a fair margin, and the price discount, noted as sold price versus list price, returned from no discount at all to offering buyers some savings off the asking price. Could this indicate the market is starting to turn, or is it an anomaly? Perhaps sellers are getting too aggressive in their asks compared to what buyers are willing to pay, especially with interest rates creeping up, which could slow the pace of sales and encourage more realistic offers from buyers. We will know more in the coming months, including if we are beginning to see a possible course correction. The other key to the market moving forward is where inventory levels head. If we continue to see the number of available homes decline, there’s a chance the upward pressure on prices remains.
In January 2022, there were 726 homes sold, a 16.6% decline from the same month last year and a 20.7% drop from December of 2021. Those homes accounted for a sales volume of over $617 million, a 12.4% increase year-over-year but a 7.7% dive month-over-month. The average sale price for a home in the desert ended the month at $850,000, marking a 34.7% leap compared to January 2021 and a 16.4% boost over the prior month. The average price per square foot for a sold home ended the month at $400.00, a 38.4% increase on an annual basis and a 12% climb month-over-month. The average days on market, also known as the sales pace, measured 38 days, a 39.7% decline (faster) from the same time last year, but an 8.6% increase (slower) from the prior month. The listing discount, noted as sold price versus list price, ended the month at 98% (or 2% off asking price), the same as January 2021 but a 2% decline from December 2021. January 2022 ended with 588 active homes on the market, a 53.4% plummet from the same month last year, and a 2% dip from December 2021. Overall, there is a 0.8-month supply of homes for sale, a 46.7% drop from January 2021 but a 14.3% increase month-over-month. A 6-month supply of homes is considered a balanced market, indicating how scarce housing inventory remains across the Coachella Valley.
As the numbers and analysis above demonstrate, the Coachella Valley is experiencing an extreme shortage of homes for sale. Limited inventory is pushing up home prices, creating a potentially lucrative opportunity for anyone considering selling a property. If you would like to learn more about your options, including a free home valuation to see what your home is worth in today’s market, please connect with a Bennion Deville Homes real estate professional.
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