A Recap of the First Quarter Coachella Valley Real Estate Market
Our first quarter 2022 Coachella Valley real estate market recap jumps into what’s happening across our desert resort cities. As inventory remains tight across the region, the market continues to respond as expected, with higher prices and a quickening sales pace. In addition to our quarterly write up, we included a March recap to review how things look month-over-month. As with all our real estate market summaries, the data is representative of cities across the Coachella Valley. If you are interested in learning more about a specific city, community, or neighborhood, connect with your local Bennion Deville Homes real estate professional. We will unlock possibilities for you.
Through the first quarter of 2022, the desert real estate market is charting a path similar to what we have been tracking since last year. Inventory is hovering around historically low levels despite a growing number of homes hitting the market. High demand is speeding up the sale pace and propping up prices. The number of homes for sale increased quarter-over-quarter, hopefully a sign that the inventory freeze is thawing in time for the shift from spring into summer. Rising interest rates, a low number of homes for sale, and the ever-present demand for the desert lifestyle are three keys to keep an eye on as we head into the second quarter of the year. For those who are on the fence about selling a property, now is still a great time to explore your options and list a home on the market.
The first quarter of 2022 saw 2,551 homes change hands, a 19.3% drop from the same period last year but a 3.1% upward nudge over the prior quarter. Those home sales accounted for nearly $1.8 billion in sales volume, a 13.8% jump from the same period last year and a 31% increase over Q4 2021. There were 3,057 listings added to the market over the course of the quarter, an 8.9% decrease compared to Q1 2021 but a 23% surge from Q4 2021. Likewise, 3,117 homes went into pending status, an 11.2% decline from the same quarter last year but a 24.2% increase over the prior quarter. The median sale price of a home in the desert ended at $581,700, a 24.8% increase year-over-year and a 6.1% improvement quarter-over-quarter. Similarly, the price per square foot valley-wide ended at $411, a 35.3% increase year-over-year and a 14.8% increase quarter-over-quarter. The average days on market, or sale pace, completed the quarter at a brisk 33 days, a 44.4% drop (faster) than the year prior and a 2.9% nudge down from the previous quarter. The average sale price versus list price percentage, known as the listing discount, ended the quarter at 100%, or no discount, a 1.7% increase year-over-year and the same as the previous quarter. Overall, inventory levels sit at 0.7 months, a 26.7% drop from the same quarter last year and an 18.5% decline from last quarter. A balanced market is considered at around 6 months, indicating how scarce inventory is right now and the strong market advantage in favor of sellers.
Similar patterns are emerging in the monthly market trends. The combination of low inventory and high demand is pushing prices up and reducing the market time for a listing, despite a growing number of homes on the market. With the sales pace staying swift and steady, homes are being purchased faster than they can be replaced. As these conditions persist, we will continue to see a steady climb in prices and fierce competition for homes. Rising interest rates are a wildcard that could cool the market. However, most property purchases across the desert are cash deals, so it remains to be seen how much of an effect, if any, interest rates increasing will have on the local market.
There were 1,079 homes sold in March 2022, a 21.4% drop from the same month last year but a 46.2% leap over the prior month. Those home sales accounted for a sales volume exceeding $677 million, an 11.6% increase year-over-year and a 14.2% jump from February of this year. March welcomed 1,116 new listings to the market, a 9.9% decrease from March of 2021 but a 10.1% increase over February 2022. There were 1,405 homes that went under pending status, a 1.3% dip from the same month last year but a 50.8% increase over last month. The median sale price of a home in the Coachella Valley finished the month at $607,000, a 23.9% increase over the same month last year and a 3.8% increase month-over-month. Likewise, the average price per square foot ended the month at $426, a 35.7% leap year-over-year and a 4.4% increase over the previous month. The sale pace, noted as average days on market for a property, clocked in at a breezy 28 days, a 48.1% decline (faster) from the year prior and a 17.6% drop from the prior month. The listing discount, or difference between the sold price and list price, finished the month at 101%, meaning homes were selling for 1% over asking price on average, a 2% increase year-over-year and the same as the month prior. Overall, there is a thin 0.6-month inventory of homes available on the market, a 20% increase year-over-year but a 25% decrease month-to-month. A balanced market is considered at around 6 months, indicating how extreme the market conditions favor sellers.
If you are considering the purchase or sale of a home in the Coachella Valley, we would be honored to have the opportunity to help. Please reach out to a Bennion Deville Homes for a free market analysis of your home or to discuss the lifestyle you are looking for in your next abode. We will unlock possibilities for you.