Recapping the February 2022 Coachella Valley Real Estate Market
Our February 2022 Coachella Valley real estate market recap outlines the major trends occurring across the desert’s resort cities. With the desert market continuing to experience unusual conditions due to a scarce number of homes for sale, we will examine the year-over-year and month-to-month numbers to provide a snapshot of emerging trends. Since the traditional stats we have presented for tracking inventory, including the number of sales and the number of homes for sale at the end of each month, are no longer sufficient, we will begin including two additional categories, new listings and pending sales. Bear in mind the numbers and analysis below are both comprehensive of our resort cities. If you are interested in learning more about the market in a specific community or neighborhood, please connect with your local Bennion Deville Homes real estate professional. We will unlock possibilities for you.
As the year rolls on, much of the same conditions persist locally and nationally. Low inventory continues to stoke competition for properties, putting upward pressure on home prices. Despite maintaining low inventory patterns, homes are being put up for sale, with more properties hitting the market in February than in January of this year, but slightly lower than the same month last year. The sales pace is the key, with homes taking nearly half the time to sell this year than last, and going for slightly above the list price on average. As we get into the spring months, which include marquee events that attract hundreds of thousands to our area, it will be interesting to see how these numbers shift, if at all. The other variable to monitor is the effect rising interest rates will have on the buyer pool. Transactions across our desert resort cities are typically cash-driven, so climbing interest rates may not have the same effect here as in other markets.
In February 2022 there were 732 homes sold, a 20.3% decline from the same month last year and a slight 0.3% dip from the previous month. Those home sales accounted for a sales volume of over $843 million, a 22% surge over February 2021 and a 7.8% increase from January 2022. The market welcomed 978 new listings, a 4.2% drop from last year but a 6% bump from last month. Additionally, 1,227 homes were pending (under contract), a 10.6% increase over the same period last year and a 49.5% jump from January 2022. The average sale price of a home in the desert resort cities ended the month at $862,000, a 27.3% increase over last February and a 1.8% upward nudge from January. Likewise, the average price per square foot for the desert ended at $409, a 32.8% increase over last year and a 2.5% increase from January. The sales pace, noted as average days on market to sell a home, clocked in at 34 days, a 46% reduction (faster) from last year and a 10.5% drop from last month. The listing discount, noted as sale price versus list price, finished at 101%, or selling for 1% over asking price on average, a 3.1% increase over the same point last year and a 3.1% increase over the previous month. The month ended with 585 homes for sale on the market, a 34.9% drop from last February and a slight 0.5% dip from January. Overall there is a 0.8-month supply of inventory in the market, a 20% decline from February 2021, and the same as January 2022. A balanced market is considered at around a 6-month supply, indicating just how tight inventory is across the desert.
As the numbers and analysis above demonstrate, the Coachella Valley is experiencing an extreme shortage of homes for sale. Limited inventory is pushing up home prices, creating a potentially lucrative opportunity for anyone considering selling a property. If you would like to learn more about your options, including a free home valuation to see what your home is worth in today’s market, please connect with a Bennion Deville Homes real estate professional.