Desert Housing Report August 2023
The Desert Housing Report is a monthly report that provides data and metrics on the resale and new home markets available in the Coachella Valley. The report is composed of two sections. The first section is the monthly home resale report for each of the ten cities in the valley. The second section is the quarterly, city by city, analysis of all land and every housing development. 2023 edition of the report. According to this report, the median price of a detached home in the Coachella Valley at the end of July fell to $669,500, down 6.3% year over year. The median attached price declined $25,000 in July to $455,000 and is now down 6% year over year. The three-month average of sales rose three units this month to 717 units a month, which is now only 74 units less than last year 2. On August 1st, Valley inventory was 1,829 units, which is again down a little more than one hundred units from last month. The Valley’s “months of sales” ratio was 2.8 months, which is .2 month less than last month but .9 months more than last year. PRICES: The median price of a detached home in the Coachella Valley at the end of July fell to $665,500, down 6.3% year over year. The median attached price declined $25,000 in July to $450,000 and is now down 6% year over year. This monthly decline, while abnormally large, is still within the seasonal pattern. Every city but Desert Hot Springs has a year over year price decline in its average size detached home. The declines range from -4.3% for Coachella to -10.2% for Bermuda Dunes. Desert Hot Springs is higher by 2%. Three cities have positive year over year changes for their attached homes – Indian Wells, Desert Hot Springs and Rancho Mirage. SALES: The three-month average of sales rose three units this month to 717 units a month, which is now only 74 units less than last year. Some of this decrease is seasonal and it’s occurring equally in both the detached and attached market. The largest percentage declines were in Bermuda Dunes, down 40%, and Palm Springs, lower by 18%. Sales numbers in every city continue to improve against last year. INVENTORY & “MONTHS OF SALES” RATIOS: On August 1 st , Valley inventory was 1,629 units, which is again down a little more than one hundred units from last month. The Valley’s “months of sales” ratio was 2.8 months, which is .2 month less than last month but .9 months more than last year. At 2.8 months, this fundamental ratio, which measures supply versus demand, is at a level that represents a balanced housing market. Seven cities now have ratios under three months, which is in the middle of the range of ratios that indicate a balanced market. It continues to be notable how close the ratios are in all the cities. DIM: At the end of July, the median number of “days in the market” in the Coachella Valley was 39 days, compared to 24 days last year. Because of dwindling inventory, we continue to expect this number to gradually move lower. The city of Coachella has the lowest median selling time for detached homes at 17 days, followed by Cathedral City at 33 days, then Desert Hot Springs at 34 days. In the attached market, Desert Hot Springs has the short average selling time at 29 days, followed by Palm Springs at 32 days. PRICE DISCOUNTS/PREMIUMS: In July, 17.9% of homes sold above list price, compared to 48.3% a year ago. The percent this month is effectively the same as last month, and the percent means that about one in every six homes currently sells above list price. Every city but Coachella is averaging a selling discount for detached homes, which range from -.3% in Cathedral City to -2.9% in Rancho Mirage and Indian Wells. Discounts for attached homes range from -.8% in Indio to -6.1% in Bermuda Dunes.
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