Our May 2021 Coachella Valley real estate market recap dives into the major trends in the desert housing market. As a reminder, the numbers below are representative of the region and may not be indicative of what’s happening in a smaller cross section of the market. If you are interested in learning more about what’s happening in a specific city, community, or neighborhood, please connect with your local Bennion Deville Homes real estate expert. We will Unlock Possibilities for you.
Comparing the data year-over-year, we are tracking very similar patterns to our previous installments in our market recap series. The number of homes for sale is way down, sales and sales volume are up, the days on market figure continues to shrink, and the listing discount (sold price versus list price) has disappeared. However, the monthly data is starting to show some interesting trends. For the first time in 7 months, we saw an uptick in available homes for sale. Despite this slight increase, sales activity was down overall while home prices rose. The really interesting stat to note is in the listing discount – which shows no discount at all. This means that on average, the list price is the starting point for negotiating a final sale price on a home and going up, a byproduct of slim inventory and also why the average home price continues to climb despite slowing sales activity. Buyers looking to dive into the summer real estate market need to be prepared to come to the table with their strongest offers in order to land a property. If you are a homeowner considering the sale of a property, now is the time to maximize the return on your investment. With home prices peaking, and still incredibly low inventory on the market, it is a prime opportunity to get top dollar. Whether buying or selling, we will continue to track how a potential rise in inventory affects prices, especially if activity remains slower on a monthly basis.
May 2021 saw 1,041 homes change hands, a 120.6% surge from last year, but a 17% drop from last month. The sales volume from those sales tallied up to nearly $779 million, a 183% increase from last year but a 9.1% decline from April 2021. The average sale price of a home closed at $748K, a 28.3% leap from the same period last year and a 9.5% increase from the prior month. Likewise, the average price per square foot finished at $342, a 22.6% jump from May of last year and a 7.6% increase from April of this year. The sales pace, noted as average days on market, clocked in at 37 days to sell a home, a 57% drop (faster) than last year and a 22.9% decrease from the previous month. The sale price versus list price came in at 100% (0% discount), which represents a 5.3% increase from last May and a 1% increase from last month. The market finished the month with 700 homes available for sale, a 74.6% decline from last May and a 5.3% increase from April of this year. Overall, there is a 0.7-month supply of homes on the market, an 87.9% plummet from May of last year but a 40% increase from the prior month this year. A 6-month supply of homes is considered a balanced market, indicating how scarce inventory is across the desert. In this situation, demand far-exceeds the supply of homes and sellers are heavily favored.
As the market numbers and analysis above demonstrate, we are in an extreme sellers’ market. Anyone who is thinking about putting their home up for sale should strongly consider cashing in now. If you would like to learn more about what your home is worth in today’s market, please connect with your local Bennion Deville Homes real estate professional.