Coachella Valley Home Sales Accelerate as Inventory Stabilizes
The Hamilton Real Estate Group March 16, 2024
The Hamilton Real Estate Group March 16, 2024
The Coachella Valley real estate market in February 2024 continues to show strength, with increased homes sold, rising inventory levels, and increasing median and average sale prices. The market conditions remained balanced, with stable average days on market and a consistent sales price/list price ratio, pointing to a predictable environment for buyers and sellers.
Number of Homes Sold
In a continuing trend over the last few months, the number of homes sold in February 2024 rose to 546, marking a 20.0% increase from the preceding month and an 11.43% rise compared to February 2023. This level of sales activity demonstrates a continued robust demand for local housing.
Inventory of Homes for Sale
The number of homes available for sale last month was up compared to the same period last year. With 2,487 properties for sale, the inventory declined slightly by 3.49% from January 2024 but had a healthy 5.83% increase from February 2023. Inventory rose to its highest level in recent years, reflecting a market that is becoming increasingly favorable to potential buyers.
Median & Average Sale Price
February 2024 saw solid gains in pricing, with the median sales price rising to $620,000—a remarkable 8.20% month-over-month increase and a 6.90% year-over-year growth. Similarly, the average sales price peaked at $904,150, equal to the previous month yet 9.85% above February 2023 figures. These pricing milestones underscore the market's strength and the sustained value appreciation of homes in the Coachella Valley.
Average Days on Market (DOM)
The average Days on Market (DOM) indicator remained steady at 68 days in February 2024, slightly quicker than the 72 days observed in February 2023. This moderate pace suggests a balanced market environment, leaning neither too heavily toward buyers nor sellers. The sales price/list price ratio of 97.42% remains unchanged from the previous year, further indicating market stability and predictability.
New Listings
We experienced a notable increase in new listing activity last month, with a 23.82% increase compared to February 2023. Despite a slight decrease from the previous month, adding 1,019 new listings indicates a significant influx of properties entering the market.
What It Means For Buyers:
The February 2024 data signals a promising environment for buyers considering a home purchase in the Coachella Valley. The increase in sales activity and rise in inventory levels point to a robust market that offers buyers more options than before. While the rise in median and average sales prices suggests a market leaning towards sellers, the stable sales price/list price ratio and a moderate average days on market indicate that properties are priced realistically, giving buyers a fair chance at negotiation.
What It Means For Sellers:
For sellers in the Coachella Valley, the February 2024 trends offer a positive outlook. The significant increase in the number of homes sold and stable inventory levels indicate a strong demand for properties. The upward trajectory in median and average sales prices reflects a market where properties appreciate, offering sellers the potential for good returns. Overall, the current market conditions suggest sellers are in a favorable position to capitalize on high buyer interest and achieve desirable property sale prices.
INTEREST RATES
Interest rates continue to challenge our market as the average 30-year fixed-rate mortgage currently sits at 6.500%, while today’s 15-year fixed mortgage rate is 5.875%, and the jumbo 30-year fixed rate is 6.400%. Rates are typically two points higher on second home and investment home purchases.
You can get a better view of the trends in our market when you look at the numbers for each major city in the area.
As indicated above, the Number of Homes Sold in February 2024 compared to February 2023 increased in all cities except Desert Hot Springs (-22%) and Indio (-26%). The biggest percentage gains in home sales were in Bermuda Dunes (+113%) followed by Indian Wells (+107%) and Cathedral City (+86%).
Regarding Average Sold Price, Bermuda Dunes stood out with a strong (+38%) increase over last February’s sales. Most cities in the Coachella Valley experienced an increase in average sales price except Rancho Mirage (-3%), Indian Wells (-5%), and Indio (-10%).
The Number of Days on the Market decreased for all cities in the Coachella Valley Except Cathedral City (+6%), Indian Wells (+4%), and La Quinta (+16%).
If you're considering putting your home on the market, let us help you get it SOLD! Now, more than ever, marketing matters! Our world-class marketing plan, with online ads, paid YouTube ads, and social media exposure, is critical in this shifting market. Call now for a free seller consultation, and let us help you decide if now is the right time to sell your home.
If you'd like a detailed market report for a specific city, email us and let us know which city reports you'd like to receive.
Call us at (760) 625-7229, or visit www.thehamiltonregroup.com for an easy-to-use home search and information on how we can help you with all your essential real estate needs.
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