Recapping the Coachella Valley Real Estate Market
A shift in the Coachella Valley real estate market is under way, as we have noted for the past couple of months and in our most recent quarterly market report. The July 2022 data suggests that the market is continuing this course with no indication of a direction change. Read on for our analysis of the numbers and what we see for the remainder of the summer months. The data and analysis below provide a snapshot of the desert resort cities region. If you are interested in learning more about what the market is doing in a specific city, community, or neighborhood, please connect with your local Bennion Deville Homes real estate professional. We will unlock possibilities for you.
Signs of reversing the pandemic-era real estate market trends are prominent in the July 2022 data. Sales activity dropped month-over-month again, inventory levels grew, and the sale pace slowed. Although the number of homes available is still at a low level, slowing activity coupled with the reemergence of a listing discount hint that the market is correcting to a more sustainable level. Accounting for these market indicators, buyers are wresting more power away from sellers at the bargaining table and will continue to see an improved negotiating position. Although we can’t offer a definitive cause for this course correction, there are a couple that stand out. Interest rates remain at higher levels, pushing some buyers to the sidelines. Meanwhile, cash buyers may be approaching a large purchase with more caution as the economy enters uncharted territory, showing mixed signals about its ultimate direction. Additionally, there is a perception that home values are reaching a peak, lending pause to buyers who can patiently wait for things to turn in their favor.
Given the direction of the local housing market and how activity has slowed, we anticipate the remaining summer months will follow the same path of growing inventory, slowing activity, and flattening price growth. This is viewed as a necessary step to establish a sustainable market and positive long-term outlook. For those considering a change, now is a good time to sell; inventory levels remain just above historic lows and homes are still fetching strong prices, especially for those who purchased within the last several years. The fall and winter months are traditionally a busier time for listings hitting the market. It is a good time to catch the eye of buyers who are searching for a home in advance of peak season. Consider acting before more competition for their attention materializes.
There were 544 homes sold in the month of July, a 39.3% drop from the same month last year and a 27.8% decline from the prior month. Those sales accounted for just over $499 million in sales volume, a 0.1% upward nudge from last July and a 25.7% dip from June of this year. The market welcomed 846 homes in July, a 15.1% drop from last July and a 24.5% decline from June. The month saw 738 homes go under pending status, an 11.2% decline from the same month last year but an 8.7% increase over the prior month this year. The median sale price of a home ended the month at $590,000, an 18% improvement over the same month last year but a slight 1.7% dip from June. Similarly, the price per square foot averaged $388.00 at the end of the month, a 17.6% increase year-over-year and 7.4% drop month-over-month. The average days on market, known as the sale pace, clocked in at 34 days on average to sell a home, a 3% increase (slower) from last year and a 25.9% jump from the month prior. The listing discount, calculated by dividing the final sale price by the list price, ended the month at 99%, or showing a 1% discount, a 2% drop from the same time last year and a 1% dip from the previous month. The month ended with 1,489 homes for sale, a 99.1% increase year-over-year and a 6.9% bump month-over-month. Overall, there are 2.7 months of inventory available, a 237.5% jump from the same month last year and a 50% monthly increase. A balanced market is considered around 6 months. Although buyers are gaining more leverage in negotiations, inventory is still scarce enough to give sellers an advantage.
If you are considering your options for the sale or purchase of a property in the Coachella Valley, we would be honored to have the opportunity to be part of your process. Please reach out to a Bennion Deville Homes real estate professional for a free market analysis of your current property or to discuss the lifestyle you seek in your next home. Visit BDHomes.com to get started.