Catch The Latest Trends with our Second Quarter 2020 Coachella Valley Real Estate Market Recap
Our second quarter 2020 Coachella Valley real estate market recap examines the major market trends taking shape across the desert. In addition to analyzing the second quarter numbers, we wanted to look at how the month of June compares both year-over-year and month-to-month. Quarterly snapshots typically show the general health of a market and are a good indicator of trend direction. However, because of the ebb and flow of coronavirus restrictions and the impact on consumer confidence, the quarterly numbers may not be sufficient in telling the whole tale. As with our other market reports, the data takes into account all desert cities and price points. If you are interested in learning more about a specific neighborhood, community, or city, please connect with a Bennion Deville Homes real estate professional. We look forward to unlocking possibilities for you.
Looking at the quarterly numbers, we see similar trends to what we have been tracking on a month-to-month basis over the last three months (including April and May). Comparing the second quarter numbers with the same period last year, prices went up despite drops in activity, the result of a steep decline in inventory. The sales pace remained relatively stable year-over-year but went up significantly quarter-over-quarter, which isn’t surprising given that activity slowed considerably starting at the end of March when health restrictions went into place. The impact of those restrictions are further evident in comparing the first and second quarter data, where we again see sharp declines in activity and inventory, but prices buoyed by a lack of available homes. The quarter finished out with a 4-month supply of homes, a big increase year-over-year, but only a slight uptick compared to first quarter of this year. Although we are trending away from a sellers’ market when taking into account the full quarter, the monthly numbers paint a different picture, which we will get into later.
Across the Coachella Valley 1,754 homes exchanged hands in the second quarter of this year, a 41.9% drop from the same period last year and a 27.8% decline compared to first quarter. Those transactions accounted for $997,523,000 in sales volume, a 35.4% decline year-over-year and a 21.5% drop quarter-over-quarter. The average closed sale price of a home finished the quarter at $568,700, an 11.2% bump from the same time last year and an 8.8% increase compared to first quarter of this year. Similarly, the price per square foot finished at $263.20 valley-wide, an 8.0% boost year-over-year and a 4.4% increase quarter-over-quarter. The Average days on market, or sales pace, finished at 86.8 days to sell a home, 0.9% higher (slower) than last year and 15.3% higher than last quarter. The listing discount, noted as sale price versus list price, finished at 95.88%, a decline of 0.5% compared to the same period last year and a 1.0% drop from last quarter. The quarter finished with 2,354 homes for sale, a 23.6% decline from the same period last year and a 22% drop from the first quarter of this year. Overall, there is a 4-month supply of homes on the market, a 29% increase year-over-year and an 8.1% increase quarter-over-quarter. A balanced market is considered at a 6-month supply, so the quarterly trend is leaning back toward a balanced market and away from favoring sellers.
Examining the June 2020 Real Estate Market Numbers
As stated up front, the quarterly numbers aren’t fully indicative of everything happening with Coachella Valley real estate because we are in special times and market conditions. Analyzing the June numbers, we can see more positive signs of where the market is going. Comparing June to May of 2020, we see huge increases in sales activity with a mild depression of home prices (less than 2%). Inventory continues to decline, but the months of inventory go from a near balanced market back to favoring sellers. This is due to the scarcity of homes available on the market. Looking at the numbers year-over-year, there are some similar patterns emerging and reasons for optimism that this summer will be different than previous summer sales seasons. Although the number of transactions was down, home prices are up by almost 20%, thanks in part to a huge drop in inventory. The sales pace is actually faster and sellers are getting closer to ask than the year prior. This trend, albeit on a smaller sample size, shows signs of life within the market. For sellers who are thinking about selling, these numbers demonstrate that now is the time to seriously consider putting your home on the market. With steady, and even climbing, prices, a strong desire to live in a less-populated area, and pent-up buyer demand, sellers are in position to maximize the return on their investment this summer.
Overall, there were 727 properties exchanging ownership in June, a 57% increase over May and a 20.5% decrease from the same month last year. Those transactions accounted for $420,917,000 in sales volume, a 54.4% increase over month-to-month and a 5.5% decrease year-over-year. The average closed sale price of a home finished at $579,000, a slight (1.7%) decline compared to May but an 18.8% leap compared to June 2019. Similarly, the average price per square foot finished at $269, a 0.1% dip from May and a 12.8% increase year-over-year. The sales pace, noted as average days on market, clocked in at 87.3 days, a 1.2% increase (slower) compared to May but a 0.7% decrease (faster) compared to the same month last year. The listing discount, noted as sold price versus list price, finished at 96.04%, a 0.2% increase compared to May and a 0.4% increase year-over-year. The market finished with 2,337 homes for sale at the end of the month, a 14.3% drop compared to the month prior and a 24% decline year-over-year. The months of inventory finished at a 3.2-month supply of homes, a 45.8% drop from May and a 5.9% decrease from June of last year.