The Desert Housing Report
All The Coachella Valley Bermuda Dunes Cathedral City Coachella Desert Hot Springs Indian Wells Indio La Quinta Palm Desert Palm Springs Rancho Mirage Thousand Palms The Desert Housing Report April 2023 Summary PRICES: The median price of a detached home in the Coachella Valley ended the month at $685,000, which is up 1.5% year over year. The median attached price surged $20,000 in April to end at $480,000. This is the second month of strong price growth with the current price only 2% below last May’s record price of $491,000. Every city but Desert Hot Springs has a year over year price decline in its average size detached home. Price setbacks in the cities of La Quinta, Indio and Palm Desert range from minus 2.2% to minus 5%. The largest declines are in the high-end cities of Indian Wells and Palm Springs. Prices in the attached market remain relatively stable. SALES: The three-month average of sales rose 120 units to 665 units a month from 545 last month. Most of this is seasonal and we expect the average to continue to increase for another month. The 12-month average of sales, which takes out seasonality, shows total sales averaged 601 units a month. This is the 21st consecutive monthly decline. The largest percentage declines in sales were in Cathedral City, down 50%, followed by Desert Hot Springs, down 47%, and Indio, down 36%. The cities of Coachella and Palm Desert continue to have the smallest percentage decline of 18% and 22% respectively. INVENTORY & “MONTHS OF SALES” RATIOS: On May 1 st , Valley inventory was 1,876 units, which is 100 units less than last month but 1,017 units greater than last year. The primary reason inventory isn’t growing in this low sales environment is that monthly new listings continue to remain near historic lows. On May 1, the Valley’s “months of sales” ratio was 3.1 months, which is slightly less than last month. This fundamental ratio, which measures supply versus demand, is slightly less than historic averages for this time of year. DIM: The average selling time in the region continues to increase. At the end of April, the median number of “days in the market” in the Coachella Valley was 48 days, which is the same as last month but 27 days more than last year. This ratio remains under its pre-pandemic average of 65 days. PRICE DISCOUNTS/PREMIUMS: In April, 15.2% of sales sold above list price compared to 55.9% a year ago. Every city has an average selling discount for detached homes, which range from 0.0% for Coachella to 3.5% for La Quinta. Attached homes range from average discounts of 1.6% in Cathedral City to 4.6% in Bermuda Dunes. The Desert Housing Report April 2023 Produced for Valley agents through the sponsorship and cooperation of GPSR and CDAR by Market Watch LLC ©2022 CDAR & GPSR. All rights reserved. Use and distribution by members only. The Desert Housing Report April 2023 Coachella Valley Median Detached Price The median price of a detached home in the Coachella Valley ended the month at $685,000, up 1.5% year over year. As the graph shows we are holding the price gains of the last few months, with the current price only 3% below the peak of $710,000 nine months ago. However, we are coming to the end of the strong seasonal period and expect upward pressure on detached home prices to relax somewhat. Median Price Coachella Valley Median Detached Home Price Detached 5.5% Jan 2002 – April 2023 Coachella Valley Median Attached Price The median attached price surged $20,000 in April to end at $480,000. This is the second month of strong price growth with the current price only 2% below last May’s record price of $491,000. This chart, plus the chart on the previous page, confirms to us that homeowner worry of large price declines is somewhat misplaced. In fact, we see the opposite. We see supply and demand somewhat balanced. While demand is slowing, so is supply, keeping prices relatively stable. The Desert Housing Report April 2023 $479,450 $480,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $550,000 Median Price Coachella Valley Median Attached Price CV Median Attached Price 4.5% Jan 2002 – April 2023 12 Month Change in The Price of The Average Size Home These two tables display the price and price per square foot of the average size home in each city. The size of each home is listed in the second column. The latest price is then compared to the price a year ago, and to the all-time lows that occurred in 2011 and 2012. Every city but Desert Hot Springs has a year over year price decline in its average size detached home. Price declines in the cities of La Quinta, Indio and Palm Desert range from minus 2.2% to minus 5%. The largest declines are in the high-end cities of Indian Wells and Palm Springs. Prices in the attached home market remain relatively stable. The Desert Housing Report April 2023 City Avg. Size Home Pr. per sq/ft Price of Avg. Size Home Price One Year Ago 12 Month Change 2011-12 Price Low % From Low Desert Hot Springs 750 $194.69 $146,018 $118,147 23.6% $16,013 812% Indian Wells 1,950 $387.11 $754,869 $644,974 17.0% $259,126 191% Cathedral City 1,250 $285.51 $356,881 $317,658 12.3% $80,544 343% Palm Springs 1,250 $370.88 $463,599 $455,418 1.8% $129,788 257% Rancho Mirage 1,775 $327.19 $580,756 $579,648 0.2% $211,030 175% Bermuda Dunes 1,450 $276.04 $400,260 $400,260 0.0% $89,117 349% La Quinta 1,750 $391.30 $684,783 $689,020 -0.6% $247,713 176% Palm Desert 1,600 $328.57 $525,706 $543,182 -3.2% $197,896 166% Indio 1,050 $270.79 $284,331 $301,360 -5.7% $56,396 404% Price of The Average Size Attached Home City Avg. Size Home Pr. per sq/ft Price of Avg. Size Home Price One Year Ago 12 Month Change 2011-12 Price Low % From Low Desert Hot Springs 1,600 $257.41 $411,864 $396,799 3.8% $86,656 375.3% Cathedral City 1,800 $313.38 $564,077 $568,134 -0.7% $153,216 268.2% La Quinta 2,550 $385.05 $981,888 $1,004,001
The Desert Housing Report Read More »
