PRICES: The median price of a detached home in the Coachella Valley at the end of August fell $5,000 to $660,401, down 3.1% year over year. This decline is primarily a seasonal decline since the summer months almost always bring some price weakness. The median attached price declined to $439,000 and is now down 6%. Every city but Desert Hot Springs continues to have a year over year price decline in its average size detached home. The declines range from -3.2% for Rancho Mirage to -11.6% for Indian Wells. Desert Hot Springs is higher by just .2%. Four cities have gains for their attached homes - Indian Wells, Desert Hot Springs, La Quinta and Rancho Mirage.
SALES: The three-month average of sales declined in August to 623 units, which is 51 units less than last year. The decline is occurring proportionally in both the detached and attached market. The sales decline mirrors the seasonal price decline. Sales over the last four months are running about 24.4% below normal. Every city except Cathedral City and Rancho Mirage has lower three-month sales, but the numbers compared to a year ago continue to improve. The largest percentage declines were in Palm Springs, down 18%, and Indio, lower by 11%.
INVENTORY & “MONTHS OF SALES” RATIOS: On September 1st, Valley inventory was 1,601 units, which is just 28 units less than the previous month. Current inventory is almost the same as last year. Some of the decline is seasonal but a primary reason is the low number of new listings. The Valley’s “months of sales” ratio was 2.8 months, which is one month more than last year. This fundamental ratio measures supply and demand and at 2.8 months, it’s at a level that represents a balanced housing market. The current ratio points to continuing stable home prices.
The housing market is much stronger than many think. Contact me for a free, no-obligation market valuation of your home, today!