PRICES: The median price of a detached home in the Coachella Valley ended October at $642,450, up slightly for the month but down 2.7% year over year. The price decline over the last five months has been primarily seasonal. The median attached price in the Valley was effectively unchanged last month at $435,000 and is now down 4.4% year over year. Year over year price changes for detached homes ranged from an increase of 11% in Bermuda Dunes to a decline of 9% in the city of Coachella. Six cities have gains for their attached homes - Indian Wells, Rancho Mirage, La Quinta, Bermuda Dunes, Cathedral City and Indio.
SALES: Sales continue to decline. The three-month average of sales was 513 units in October, which is 53 units less than last year. The 12-month average of sales, which takes out seasonality, shows sales are averaging 599 units a month. This is 25% below last year. The city with the largest percentage increase is Rancho Mirage, with sales up 17%. The cities with the largest declines are Indio and La Quinta, with sales down 20% each.
INVENTORY & “MONTHS OF SALES” RATIOS: In October, Valley inventory increased 348 units and by November 1st it stood at 2,110 units. While most of this increase is seasonal, we’re struck by the size of the gain, which is larger than most increases in October. The Valley’s “months of sales” ratio was 3.5 months, which is up .5 months from last month and one month more than last year. This fundamental ratio measures supply and demand and, at 3.5 months, is at a level that is somewhat normal.
The housing market is much stronger than many think. Contact me for a free, no-obligation market valuation of your home, today!