Fueled by historically low inventory coupled with soaring demand for the relaxed desert lifestyle, the Coachella Valley real estate market is poised to stay hot in 2021. Now that we are through one of the busiest holiday seasons in recent memory, it is time to strongly consider putting your desert home on the market, especially for anyone who has been thinking about selling. To help you determine if now truly is the time, consider these reasons:
1. Record Scarcity: The desert real estate market is experiencing historically low inventory levels. At the end of January, the number of homes for sale was down over 60% year-over-year, with only 1.5 months of inventory to supply market demand. A market is considered balanced with 6 months of inventory, further demonstrating how few homes are for sale right now. This inventory shortage has pushed the average sale price of a Coachella Valley home well into the mid-$600K range as sellers can typically get top dollar for their property. Fewer homes to compete with for the attention of buyers means sellers have more negotiating power at the bargaining table. If you have equity built up in your current home, you may be able to maximize the gains on your initial investment, especially if you can list your home before the next wave of properties hits the market.
2. Surging Demand: As we have been tracking over the last several months, there are multiple buyer pools seeking to pick up a slice of our desert paradise. In addition to our usual seasonal homebuyers coming from parts elsewhere to purchase a part-time residence, as well as full-time home shoppers, we have a flood of buyers coming from coastal Southern California communities and the Bay Area. Since many major companies have embraced remote working, many home buyers are looking to escape the big city and its cost of living and population density to move to the desert. This added buyer pool brings even more competition for homes active on the market, which is a good thing if you are looking to sell your property for the highest price possible.
3. Affordable Properties: Interest rates remain at historically low levels, in most cases coming in well below 3%, making the cost of borrowing money that much cheaper. Lower interest rates also inspire more potential homebuyers to pursue purchasing a home as they can lock in a better mortgage rate and potentially lower their monthly payment. With more homebuyers accessing affordable loans, their purchasing power increases as well, broadening the buyer pool for many properties up for sale. Despite rising home prices, the Coachella Valley still has properties at price points that are palatable to first-time homebuyers, which creates another possible type of buyer for your home, depending on the price point.
4. Favorable Trends: The growing number of people who can work remotely has suddenly shifted the landscape of many large metropolitan areas, especially tech hubs in Northern California and the SoCal markets of Los Angeles, Orange County, and San Diego. Seeking properties in a locale with more space, a desirable quality of life, and surrounded by natural escapes and splendor, there is a wave of homebuyers identifying the Coachella Valley as the ideal spot to work hard and play hard at a lower cost of living. Additionally, as home prices rise in the coastal and even some inland markets, there is a push further east to seek more home value. All of these shifts add up to create favorable conditions for sellers as they can capitalize on the feverish demand sparked by homebuyer trends.
5. Unmatched Appeal: Try to think of a place to call home that is as unique and desirable as the Coachella Valley in Southern California. We are surrounded by epic natural landscapes and beauty, we have key amenities that keep our quality of life high and living costs low, and our laid back lifestyle is enviable to just about any visitor from around the world. Better yet, the desert community is strong and well connected, creating a close-knit, small-town vibe in a destination that is larger than life.
If you are considering the purchase or sale of a property, we would love the opportunity to be a part of your process. Please connect with your local Bennion Deville Homes agent or contact us to start exploring your options. We look forward to unlocking possibilities for you.