Identifying Trends in the May Coachella Valley Real Estate Market
Stay up to date on the latest trends across the Coachella Valley real estate market by reading our May 2022 recap. In our last edition covering the April numbers we mentioned there were signs a market shift may be on the horizon, if not already happening. Just one month later and we have a clearer picture about a possible shift. As a reminder, the data we use in our real estate market summaries are representative of the desert resort region. If there is a specific city, community, or neighborhood you would like to get more information about, please reach out to your local Bennion Deville Homes real estate expert. We will unlock possibilities for you.
Now that we have observed persistent patterns over the past few months, we are getting a clearer picture about the market’s direction. Although it takes more than one quarter’s worth of data to truly project a trend, the signs are pointing toward a market shift taking effect across the Coachella Valley. The number of homes available for sale at the end of the month finished in 4-digit territory while the number of homes sold dropped. This is the first time we have seen a month end with over 1,000 active listings since January 2021. Despite less activity and growing inventory, there is still a very thin 1.2 months of inventory to feed demand, which is keeping prices elevated, creating a lightning-quick sale pace, and keeping the sale to list price ratio above 100%. Although the market may be slowing down and correcting due to a variety of factors, notably rising interest rates and general uncertainty over the economy, there is still a major imbalance between supply and demand for homes. This summer will be fascinating to monitor because it may be the first time in 2 years where our pre-pandemic market seasonality takes effect, experiencing a quieter period over the summer until ramping back up in the fall in advance of the desert’s prime season. Regardless of seasonality, the same economic principles of supply and demand that influence pricing will remain the same. The real question is how other variables influence both of those key factors, and if the potential return of seasonality allows one or the other to experience a notable shift.
Across the Coachella Valley in May 2022, we saw 873 homes change owners, a 15.6% drop from May of last year and a 4.7% dip from April 2022. That sales activity created a sales volume of over $710.5 million, a 33.3% increase over the same month last year but a slight 2.1% decline from the prior month. Overall, the market welcomed 1,112 new listings to the market in May, an 8.5% increase over last year but a 5.4% drop from April of this year. There were 1,040 homes that went under contract (pending) over the course of the month, a 0.6% increase over last year and a 12.6% increase over the previous month. The median sale price of a home across the desert closed the month at $639,000, representing a 22.9% leap year-over-year, and a 3.4% bump month-over-month. However, the price per square foot finished the month at $437.00, a 27% leap over last May but a slight drop of 1.8% from April 2022. The average days on market for a listing, or the sale pace, registered a swift 27 days, a 27% drop (faster) from the same month last year and the same pace as April of this year. The listing discount, noted as the percentage difference between the final sale price and the list price of a home, finished at 102%, or on average homes sold for 2% over the list price in May 2022. This represents a 2% improvement over the same month last year and the same figure that we saw in April of this year. There were 1,061 homes available for sale at the end of the month, a 55.8% surge over May of last year and a 41.3% improvement over the prior month of this year. Overall, there is a 1.2-month supply of homes for sale on the market, a 71.4% increase over last year and a 50% increase over last month. A 6-month supply of homes is considered a balanced market, indicating that although we are moving back toward equilibrium, market conditions still strongly favor home sellers.
If you are considering the purchase or sale of a property in the Coachella Valley, we would be honored to have the opportunity to help. Please reach out to a Bennion Deville Homes real estate professional for a free market analysis of your property or to discuss the lifestyle you are looking for in your next home. We will unlock possibilities for you.