A Recap of the October 2022 Coachella Valley Real Estate Market
The fourth quarter real estate market kicked off with an interesting October. Patterns we have been tracking for months remained, while others changed course. Keep reading to see how the market closed the month and what it could mean for the upcoming desert real estate sales season. Our recaps are comprehensive of the entire desert resort cities region and do not necessarily reflect what’s happening on a more granular level. If you want to learn more about the state of the market in a specific city, community, or neighborhood, connect with your local Bennion Deville Homes REALTOR®. Whether purchasing or selling a property, they can provide you with the latest data and analysis to help you make the best decision. We will unlock possibilities for you.
October traditionally marks the early days of the desert sales season, and many of the hallmark seasonal patterns emerged in the trendline. New listings solidly increased month-over-month but declined slightly year-over-year. Total inventory far surpassed the total at the end of September and more than doubled annually. Additionally, the number of homes going into pending status saw a solid monthly increase, but an even more drastic decline when compared on an annual basis. Keep in mind the market was still on an unprecedented hot streak at the end of 2021, marked by extremely low inventory and fervent demand. As noted over the past several months, those two conditions have tapered off, leaving us with a more harmonious market that is balancing.
The overarching trend of a balanced market is prevalent with the October numbers. This is good news overall for buyers and sellers as we head toward the end of the year. Although increasing at a sharp rate, inventory levels are still below historic levels, creating conditions that favor sellers who wish to cash out on realized equity. On the other hand, those in the market to purchase a property have more choices to consider. The listing discount also remained at a modest 2%, not as deep as we are used to seeing, but still enough to show that sellers will need to be realistic with their pricing if they are to attract the right buyer for their listing. These factors haven’t quite hit the average sale price, yet, which increased monthly and annually. However, with inventory rising and activity low but steady we expect prices may see a slight correction while remaining at stable levels into 2023.
October saw 430 homes exchange hands, a 44.5% drop on an annual basis, and a 12.8% decrease month-over-month. Those home sales accounted for almost $555 million in sales volume, a 1.8% increase year-over-year, and a 9.4% leap month-over-month. The market welcomed 934 new listings in October, a 6.6% decline compared to last year, but a 5.9% increase compared to September. There were 574 homes that entered pending status, a 32.2% annual decrease, but a 16% monthly increase. The median sale price for a home in the desert region ended at $594,000, a 9% increase year-over-year and a 3.3% increase month-over-month. Similarly, the price per square foot finished the month at $389, a 10.2% annual increase, and a modest 1.3% monthly increase. The sale pace, noted as average days on market, clocked in at 45 days, a 32.4% increase (slower) from last October, and a slight 2.3% increase from September. The listing discount, noted as sale price versus list price, ended the month at 98%, or a 2% discount off the list price on average, a 2% change from last October and the same as September. The market closed the month with 1,873 active listings, a 112.4% leap year-over-year, and a 15.5% surge month-over-month. Overall, there is a 4.4-month supply of homes to meet demand across the market, a 300% increase year-over-year, and a 33.3% increase month-over-month. A balanced market is considered at around 6 months of inventory, which the market is quickly approaching due to rising inventory and slowing sales.
If you are thinking about buying or selling a Coachella Valley property, we would be honored to have the opportunity to assist you. Please reach out to a Bennion Deville Homes real estate professional for a free market analysis of your home or to discuss the lifestyle you are looking for in your next home.