Reviewing the November Coachella Valley Real Estate Market
Read our Coachella Valley real estate market recap for the latest Greater Palm Springs Area market news and information.
Check out the Coachella Valley real estate market recap to see how the desert market is looking.

Analyzing the Desert Real Estate Market from November 2022 Data

Heading into the final month of the year, the desert real estate market’s path is crystalizing. The November figures demonstrate a continuation of trends from the prior months, leading to a clearer picture of where things are heading to close out 2022. As you get into our recap, please keep in mind that our market analysis covers the Coachella Valley’s resort cities from Palm Springs to Indio. If you are interested in finding out more about a specific city, community, or neighborhood, contact your local Bennion Deville Homes real estate professional. We will unlock possibilities for you.

The previous two desert real estate seasons have been anything but normal and the data from November shows that we are in for another stretch of “unprecedented” times. Overall sales activity continues to decline, coming in at half of what it was last year and down about 20% from October. Although the market tends to slow down during the holidays, the total figure is lower than usual. That deceleration of activity impacts several categories, including the number of homes for sale, which ended up significantly higher than the prior year, and the previous month. Despite rising inventory levels, the number of new listings entering the market is slowing, down by large margins compared to October of this year and November of last year. We also see homes selling at deeper discounts on average, coming in at 3% for the first time in years, whereas there was no discount last November. The sale pace continues to stretch past 40 days, significantly slower than it was last year but showing to be a bit faster than the prior month. In the long run, this figure is expected to continue to slow down. The median sale price was up almost 4% year-over-year but dipped by over 4% month-over-month. This is something to keep an eye on if activity continues to stay sluggish. Sellers will have to adjust prices to attract buyers. However, prices are still healthy, and any price regression should be modest due to still historically low inventory levels.

It is becoming clearer that the market pace is decelerating, even outside of traditional holiday seasonality. We have been predicting this for some time, and view this as an overall positive shift. Prices are still healthy and at stable levels, and the growing inventory gives buyers more options to consider when they decide to jump into the market. A realignment of these conditions is good for the long-term health of the desert’s real estate market, and it still presents opportunities for both buyers and sellers to be successful with achieving their goals. Sellers who have owned their home for many years are in position to realize sizeable gains in equity, and buyers have more leverage in negotiations than they have had in years. Regardless of your needs, consult with your Bennion Deville Homes real estate professional to go over your options and to figure out the best strategy for your situation.

There were 397 homes sold in November, a 49.2% decline from the same month last year and a 19.1% drop from October of this year. That sales activity created nearly $443 million in sales volume, a 5.5% decrease from last November and a 22.9% drop from the prior month. The market saw 777 new listings go up for sale in November, a 9% decline from the same month last year and a 19.1% drop from October. Additionally, 583 homes went into pending status, a 32.1% decline from the same period last year, but a 32.8% increase over the previous month. The median sale price for a home ended the month at $570,000, a 3.8% increase over the same month last year but a 4.4% drop from October. The average price per square foot finished the month at $394.00, a 7.9% increase over last year and a 1.3% jump over the prior month. The average days on market, or sale pace, came in at 43 days, a 26.5% increase (slower) compared to last November, but a 4.4% drop (faster) from last month. The listing discount, calculated by dividing the sale price by the list price, came in at 97%, or showing an average discount of 3%, a 3% decline from last year and a 1% decline from last month. The market ended the month with 1,978 homes for sale, a 173.6% surge over last year, and a 5.6% bump from October. Overall, there is a 5-month supply of homes on the market, a 455.6% increase over last November and a 16.3% increase over last month. A balanced market is considered at around 6 months of inventory, which the market is nearly meeting due to the slowdown in activity.

1 Comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.