Our January 2021 Coachella Valley real estate market recap dives into the key trends that are emerging after the first month of the year. As with previous installments in our desert market coverage, we are going to examine the year-over-year as well as the month-over-month numbers to get an idea as to the direction things are heading. January picked up where December left off to some extent, but we did see a few key metrics start to return to their usual levels. The numbers and analysis below are meant to show how our region is doing on the whole. If you are interested in getting more information on a specific city, community, or neighborhood, connect with your local Bennion Deville Homes real estate professional. We look forward to unlocking possibilities for you.
Continuing the trend of shattering the previous year’s numbers that started last summer, January 2021 outpaced January 2020 figures by a considerable margin across the board. The key stat to keep an eye on is inventory, which is still sitting at a historically low level with only 1.5 months of active inventory available to feed the demand for our desert’s desirable lifestyle. The scarcity of available homes is putting upward pressure on home prices, which saw massive gains year-over-year in both the average closed sale price as well as the price per square foot. Now that the holidays are over, which were perhaps the busiest on record, we shall see if the torrid sales pace and demand gets even stronger (more on that below). With such a short supply of inventory, homes that hit the market are going quickly, sometimes within hours of being put up for sale. Buyers looking to make their move in these market conditions need to come with their strongest offer up front to increase their chances of having their deal accepted. On the flip side, sellers trying to maximize their equity should seriously consider putting their home on the market before a wave of properties becomes available. With fewer homes for sale, now is the time to stand out in the market and get top dollar for your home.
There were 855 homes sold in January 2021, a 17.6% increase from the same period last year. Those sales accounted for over $542 million in sales volume, a 43.5% increase over January 2020. The average sale price of a home finished the month up by 22% over last year, coming in at $634,000. Similarly, the price per square foot ended the month at $287.20, a 14.8% jump from the same month last year. The sales pace, noted as days on market, clocked in at just under 64 days, a 23% decline (faster) in market time compared to January 2020. The listing discount, noted as sold price versus list price, finished the month at 2.15% (meaning the final sale price came in at 97.85% of list price on average), a 1.4% improvement over the same period last year, indicating sellers received closer to asking price this year than last year. The market ended the month with 1,249 homes for sale, a 61% plummet from last January. Overall, there is only a 1.5-month supply of homes to meet market demand, a 65.9% decline from last year. A 6-month supply is considered a balanced market, indicating that the market currently favors sellers.
Comparing the month-to-month numbers, we can see some regression is happening within the market. Sales activity and inventory levels both took a dip in January compared to December 2020, and the average closed sale price had a slight downward adjustment as well. For the short-term trend line, we need to monitor how home prices affect homebuyer activity. As tight as inventory is, it appears we may be starting to see signs of homebuyers getting sticker shock and perceiving the market as overvalued. Sellers need to be mindful of this when putting their home up for sale. Yes, there are fewer homes available on the market, but buyers will still do their homework to ensure they are getting the property for fair market value. Make sure your real estate professional presents you with a Comparative Market Analysis (CMA) for your home when figuring out your home’s pricing strategy to ensure you are listing it for a price that aligns with current market conditions.
Month-over-month, there were 26.5% fewer homes sold in January (855) than in December. Those sales accounted for over $542 million in sales volume, a 29.7% decline month-to-month. The average sale price of a home finished the month down 4.3% compared to December, ending at $634,000. In similar fashion, the price per square foot of $287.20 was 3.9% lower than it was in December. The sales pace, noted as average days on market, finished at 63.5 days, 1.1% higher (slower) than December’s pace. The listing discount, noted as sold price versus list price, finished the month at 2.15% (or final sale price was 97.85% of list price), a 0.1% improvement over December. Inventory levels ended the month with 1,249 homes for sale on the market, an 18% drop from December. Overall, there is a 1.5-month supply of homes for sale on the market, a 15.4% increase from December. A balanced market has a 6-month supply, indicating that current conditions favor sellers.