Record low inventory and record high sales are the two conditions driving home prices higher in every city. The median price of a detached home in the Coachella Valley in April was $559,750, up 27% over last year's value. For the 10th straight month, the median price for attached homes in the Valley rose. It ended the month of April at $349,900, which is 17% higher than last April. Every Valley city is participating in the strong price movement for detached homes. Four cities now show year-over-year price gains over 30% - Indian Wells, Rancho Mirage, Palm Springs and Desert Hot Springs. Attached homes are filling the price void below detached home prices.
Inventory continues to remain low and on May 1st stood at just 710 units. That compares to 2,982 units one year ago. There are simply far more homebuyers than home sellers. We believe much of this is due to a reluctance of many homeowners to list their house during the pandemic and that once the vaccine is widely distributed this reluctance will fall away and more homeowners will begin to list their homes. When that happens, inventory should begin to rise.
