Our second quarter 2021 Coachella Valley real estate market recap gets into the details and trends of the last 3 months. Since the desert real estate market continues to experience unprecedented changes, especially heading into summer, we have included a June recap, too. All the numbers in the recap below are representative of our entire region. 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 professional. We will Unlock Possibilities for you.
The Quarterly Snapshot
The second quarter 2021 stats show a continuation of the trends that we have been tracking for several months. Comparing the figures year-over-year, activity and the price of homes are both up significantly compared to the same period 12 months ago, while the inventory level has gone in the opposite direction. Additionally, the sales pace (noted as days on market) is significantly faster while the listing discount enjoyed last year has completely evaporated. The current market conditions favor sellers, and are keeping home prices high as demand far exceeds the supply of available properties for sale. Examining the quarter-over-quarter trend, we see the same general pattern but with more modest, incremental changes. Regardless of the timeframe being compared, demand is so extreme that most homes that are listed are sold very quickly and often with multiple offers for over the list price, which contributes to the fast sales pace figure as well as the disappearing listing discount.
The second quarter of 2021 saw 2,902 homes change owners, an 89.9% surge from the same period last year and a 5.6% increase quarter-over-quarter. Those sales accounted for over $2.1 billion in sales volume, a 135.9% leap over the same period last year and an 11.2% increase from the previous quarter. The average sale price of a home finished the quarter at $748,300 which represents a 24.6% increase from last year and a 6.2% bump from the prior quarter. Similarly, the price per square foot finished the 3-month run at $345.30, a 23.6% vault over the prior year and a 9.3% increase over first quarter of this year. The sales pace, noted as the average number of days on market to sell a home, finished at 40 days, a 54.2% drop (faster) from the prior year and a 34.2% decline from the prior quarter. The listing discount, noted as sale price versus list price, ended the quarter at 0.3% (homes sold for 99.7% of the list price on average), which is a 5.3% surge compared to the prior year and a 1.4% increase from the first quarter of 2021. The quarter ended with 580 homes for sale on the market, a 72.6% drop from the same period last year and a 7.8% drop from the end of the first quarter of this year. Overall, there is a minuscule 0.6 months of inventory available on the market, an 87.1% plummet from the same period last year and a 36.7% decline from the first quarter of 2021. A 6-month supply of homes is considered a balanced market, so the fact that inventory can be measured in weeks instead of months is an indicator of just how much of a seller’s market we are in right now.
The Monthly Snapshot
On a monthly basis, the year-over-year patterns for June echo what we recapped in the quarterly trends. Huge gains in average price are being driven by historically low inventory and extreme demand for homes. However, the month-to-month numbers and trends are starting to shift a bit. After gaining some inventory last month, we saw a dip again this month. Despite that drop in available homes for sale, the number of homes sold went up slightly. There was some modest price regression, but we need to see this happen for consecutive months and with supporting peripheral stats before it becomes a trend. The market time for a home (average days on market) continues to edge closer to the 30-day mark, which indicates on average homes across all price points are sold and closed within a matter of weeks. The chances of repeating and even beating the record summer sales season last year look very good given the feverish pace of sales. Sellers who are thinking about putting their home on the market should consider acting now. Minimal inventory, high demand for properties, and low mortgage interest rates create the perfect market conditions to get top dollar for your property.
In June 2021 there were 915 home sales recorded across the desert’s resort cities, a 44.1% improvement over last year and a 1.9% nudge upward from May. Those sales accounted for just shy of $679 million in sales volume, a 74.7% leap over last June and a slight downward shift of 3.7%. The average sale price of a home finished the month at $742,000, a 21.2% increase from last year but a 5.5% drop from the previous month. The average price per square foot had a similar outcome, finishing the month at $350.00, a 23.7% increase from last year and a 1.4% dip from last month. The average days on market clocked in at 35 days, a 60.7% drop (faster) than last year and a 7.9% decline from May of this year. The listing discount, noted as sold price versus list price, was 0, meaning there was no discount on average. This is a 5.3% improvement over last year and the same as the previous month.
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.