Are you considering buying a home in the Coachella Valley? As we bid farewell to 2023, it's crucial to take stock of the real estate market's performance and glimpse into what 2024 might have in store for prospective homebuyers. Here's a concise summary to help you make informed decisions:
Prices on the Rise
The median price of detached homes in the Coachella Valley closed December at $659,000, marking a 3.8% monthly increase and a 3% rise over the entire year. December typically sees a surge in prices, and this pattern is expected to persist into 2024. Attached homes followed suit, ending the year at a median price of $460,000, up 3.4% for the year. Notably, 2023 showcased varying price gains, ranging from a 7.8% increase in Palm Springs to a 10.4% decline in Bermuda Dunes.
Stabilized Sales with Positive Signs
Sales in the Coachella Valley real estate market appear to have stabilized, albeit at a modest level. The three-month average of sales for December reached 490 units, a noteworthy 22-unit increase from the previous year — the first rise in over two years. All cities, except Cathedral City, Desert Hot Springs, and Indian Wells, experienced higher three-month December sales compared to the previous year. Coachella led with a remarkable 48% increase, followed by Rancho Mirage (20%) and La Quinta (13%).
Inventory and "Months of Sales" Ratios
Valley inventory decreased by 167 units in December, standing at 2,093 on January 1st. While a year-end dip in inventory is typical for technical reasons, overall inventory remains close to the highest levels of the last four years. The "months of sales" ratio for the Valley was 3.5 months, an increase of 0.9 months from the previous year. Despite being among the highest levels in recent years, it is still 1,000 units below what is considered normal.
Days in the Market (DIM)
At the close of 2023, the median number of "days in the market" in the Coachella Valley was 35 days, one day less than the previous month and the previous year. Coachella leads the pack in detached homes with the lowest median selling time at 21 days, followed by Desert Hot Springs (28 days) and Indian Wells (30 days). In the attached market, Indio boasts the shortest average selling time at 21 days, with Desert Hot Springs (27 days) and Palm Springs (29 days) following closely.
Price Discounts/Premiums
In December, 15.1% of sales in the Coachella Valley exceeded the list price, a slight decrease from 15.8% the previous year. The expectation is for this percentage to remain around 16%, representing one out of every six sales in the foreseeable future. Each city exhibits an average selling discount for detached homes, ranging from 1.1% in Coachella to 5.3% in Bermuda Dunes. Discounts for attached homes range from 1.1% in Cathedral City to 4.4% in Bermuda Dunes.
As you contemplate your homebuying journey in the Coachella Valley, staying informed about these trends will empower you to make confident decisions. With prices showing an upward trajectory, stabilized sales, and varied market conditions across cities, 2024 promises both challenges and opportunities for prospective homeowners. For a deeper dive into the market trends, and city-specific insights, visit our website. Your dream home in the Coachella Valley may be closer than you think, and we're here to guide you every step of the way.