Our April 2020 Coachella Valley real estate market recap dives into the trends around the Southern California desert. The biggest overarching factor affecting the current real estate market is the outbreak of the coronavirus locally and abroad. Because of the unique circumstances surrounding the market data, comparing the numbers year-over-year paints a different picture than examining some of the additional underlying factors and trends that are starting to emerge. As with all of our market reports, the numbers below are a snapshot of our entire region and do not necessarily indicate what’s happening within a specific community. If you are interested in learning more about a particular city or neighborhood, please get in touch with one of our Bennion Deville Homes real estate professionals. We look forwarding to unlocking possibilities for you.
The April 2020 numbers indicate a steep change year-over-year in the Coachella Valley real estate market. With activity clamped down in the interest of public safety and health, the market slowed to a crawl. It is also worth noting that April contains the first full month of market data since local coronavirus regulations went into place. As you can imagine, sales activity slowed, cut nearly in half compared to the same month in 2019. Home prices saw a very modest dip, and inventory dropped significantly, although it is fair to point out that the inventory levels in April are consistent with reported figures from the beginning of the year. Instilling some reasons for optimism, sales pace (days on market) quickened and the listing discount (sold price versus list price) saw only a minor drop as well, indicating that sellers still received close to asking price for their home despite a diminished buyer pool.
Because we are in unprecedented times, we cannot accurately predict when exactly the real estate market will ramp back up to “normal” levels of activity. However, with many buyers forced to the sidelines due to job loss and uncertainty, and some sellers waiting things out, too, we are confident that the recovery within the real estate market will be quick once local regulations loosen, people start to return to work, and consumer confidence is restored. Since much of the transaction process can be done through online and virtual tools, we also believe that market activity will recover sooner than expected as the industry adapts to current regulations and conditions. We attribute much of the recent market activity to the availability of digital transaction tools, allowing real estate professionals and their clients to conduct business virtually and keep deals together through technology. Without these assets in place, the pandemic could have had a much more crippling effect on the real estate industry.
Overall, there were 538 homes sold in April 2020, a 48.5% drop off from April 2019. Likewise, the sales volume finished down by 49.5% year-over-year, with a final tally of $285,303,000. The average closed sale price finished at $530,300, a 2.1% drop compared to April 2019. In similar fashion, the average price per square foot ended the month at $246.20, a 1.8% decline year-over-year. There were 2,876 homes for sale at the end of April, down by 20.4% from the same period last year. The sales pace, or average days on the market, clocked in at 77 days, a 6.1% decline (faster pace) from April 2019. The listing discount, noted as sold price versus list price, finished at 95.13%, a 1.5% decline from the same period last year. Overall, there are 5.3 months of inventory on the market, a 51.4% increase year-over-year. With a 6-month supply of inventory considered neutral, the Coachella Valley market is trending from a sellers’ market toward a buyers’ market, at least looking at the numbers on the surface.