More New Listings and Lower Interest Rates Creates Opportunities for Buyers & Sellers

As we transition through the second half of 2024, the real estate market in the Coachella Valley continues to evolve, offering opportunities for both buyers and sellers. Whether you’re considering buying or selling, understanding these shifts can help you make informed decisions and seize the best opportunities in this dynamic desert market. Let’s take a closer look at what the numbers are telling us. 

SALES TRENDS

Number of Homes Sold

In August 2024, 464 properties were sold in the Coachella Valley. This represents a 10.08% decrease from the 516 homes sold in July 2024 and an 8.12% decrease compared to 505 homes sold in August 2023. While the number of homes sold has decreased, this trend could indicate a more balanced market, offering new opportunities for buyers to find their ideal homes.   

Inventory of Homes for Sale

The inventory of homes for sale reached 2,251 units last month, marking a 6.67% decrease from 2,412 units in July 2024. Notably, this is a 16.15% increase from the 1,938 units available in August 2023, positioning the current inventory at its highest level compared to the same period in the past two years. This expanded selection provides buyers with a broader array of options.

Median & Average Sale Price

Last month, the average sale price in the Coachella Valley was $749,087, reflecting a 2.87% increase from $728,195 in July 2024. Although this represents a slight 1.05% decrease from the $757,002 average in August 2023, the month-over-month growth signifies a positive trend for sellers. It underscores the enduring value of properties in the region.

The median sale price for August 2024 was $566,394, marking a 2.43% decrease from $580,500 in July 2024 and a 2.35% decrease from $580,000 in August 2023. This decline brings the median sale price to its lowest level compared to August 2023 and 2022. The reduction in median price suggests that more moderately priced homes are being sold, providing buyers with more affordable options in the market.

Average Days on Market (DOM)

Properties spent an average of 70 days on the market (DOM) last month, a 4.48% increase from 67 days in July 2024 and a 14.75% increase from 61 days in August 2023. The upward trend in DOM suggests a shift towards a more balanced market, giving buyers additional time to make informed decisions while allowing sellers to engage with a broader pool of potential buyers.

New Listings 

August 2024 saw 832 new listings, a 20.93% increase from 688 new listings in July 2024 and the same percentage increase from 688 new listings in August 2023. This influx of new properties contributes to a dynamic market environment, offering buyers fresh opportunities and highlighting sellers' confidence in the market's vitality.

What It Means For Buyers:

The Coachella Valley real estate market continues to provide opportunities for buyers. With inventory at its highest level in recent years and an increase in new listings, there is a wider selection of homes. The average days on market have increased to 70 days, signaling a shift towards a buyer's market and providing more time to make informed decisions. Additionally, stable and slightly decreased average sale prices present a chance to purchase properties at competitive values.

What It Means For Sellers:

For sellers in the Coachella Valley, the market presents both opportunities and cautions. The average sale price has increased by 2.87% from the previous month, signaling that buyers are willing to invest in quality properties, which encourages maximizing your return. However, there is heightened competition with the inventory at its highest level and a significant 20.93% increase in new listings. Strategic pricing and exceptional presentation of your property are crucial to navigating this dynamic market successfully.

INTEREST RATES

There is continued good news regarding interest rates, which have continued to challenge our market and are starting to show some downward trends. The average 30-year fixed-rate mortgage currently sits at 6.27%, while today’s 15-year fixed mortgage rate is 5.74%, and the jumbo 30-year fixed rate is 6.63%. Rates are typically two points higher on second-home and investment-home purchases.

CITY STANDOUTS!  WHAT'S UP AND WHO'S DOWN?

The numbers for each major city in the area give a better view of the trends in our market.

The Number of Homes Sold in August 2024 compared to August 2023 has dropped in all cities except Palm Desert (+2%), La Quinta (+2%), and Indio (+14%). Indian Wells had no change. 

Regarding Average Sale Price, Indian Wells stood out with a substantial (+42%) increase over last August’s sales. All cities in the Coachella Valley experienced a decrease in average sales price except Desert Hot Springs (+6%), Bermuda Dunes (+15%), La Quinta (+9%), and Coachella remained the same.

The Number of Days on the Market Increased for all cities in the Coachella Valley Except Palm Springs (-5 %), Cathedral City (-21 %), and Rancho Mirage (-4 %).

CITY WATCH - PALM DESERT

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.