Temperatures are heating up, yet the U.S. housing market remains cooler than usual for this time of year due to a combination of low inventory and higher borrowing costs.
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 1st , 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.
The housing market is much stronger than many think. Contact us 760-770-1555 for a free, no-obligation market valuation of your home, today!