Increased Inventory and Lower Home Prices in the Coachella Valley
The Hamilton Real Estate Group July 16, 2024
The Hamilton Real Estate Group July 16, 2024
Welcome to our July 2024 Coachella Valley Real Estate Market Update. This month has brought some shifts in the market dynamics, with, for the first time, notable decreases in both median and average sale prices and a continued increase in inventory. Buyers have more options and opportunities to negotiate better deals, while sellers must price competitively to attract attention. What contributed to this decrease in average selling prices? Read on as we have the answer!
Number of Homes Sold
In June 2024, 528 homes were sold in the Coachella Valley. This represents a significant decrease of 25.42% from the previous month, when 708 properties were sold, and a 20.12% decline compared to June 2023, when 661 properties were sold.
Inventory of Homes for Sale
The inventory of homes for sale in June 2024 stood at 2,476 properties. This figure is 10.13% lower than the 2,755 properties available in May 2024 but shows a notable increase of 16.46% from the 2,126 properties listed in June 2023. This inventory level is the highest for June in recent years, providing a greater selection for buyers.
Median & Average Sale Price
The median sale price for homes in June 2024 was $585,450, reflecting a 5.76% decrease from $621,250 the month prior and a 1.11% decline from $591,999 in June 2023. This is the lowest median sale price recorded for June over the past two years.
Similarly, the average sale price was $786,098, down 10.20% from $875,411 last month and 5.55% from $832,252 in June 2023. The average sale price for June 2024 is also at its lowest point compared to June 2023 and 2022. Selling prices were trending slightly upward during the first half of the year, but they seem to be settling down slightly as we move through summer.
It’s interesting to note that a key factor in the overall decline in sales was due to a significant drop in the number of sales and selling prices in La Quinta. La Quinta makes up 20% of the sales in the valley and this big change in La Quinta has impacted this overall number. In most other cities, selling prices were, in fact, higher than they were last year.
Average Days on Market (DOM)
The average days on market (DOM) for properties in June 2024 was 74 days. This is a 10.45% increase from 67 days in May 2024 and a 17.46% rise from 63 days in June 2023. The DOM for June 2024 is the highest it has been over the past three years, indicating a shift towards a more balanced market or potentially a buyer’s market.
New Listings
June 2024 saw the addition of 625 new listings to the market. This represents a 5.05% decrease from 658 new listings in May 2024 but a 10.62% increase compared to 565 new listings in June 2023.
What It Means For Buyers:
The current Coachella Valley real estate market presents improving conditions for buyers, with increased inventory and new listings offering a wider selection of homes. Lower median and average sale prices, combined with longer average days on market (DOM), indicate opportunities for buyers to negotiate better deals and take their time making informed decisions. The market is shifting towards a more balanced or buyer's market, where buyers can leverage the reduced competition and more favorable pricing to their advantage.
What It Means For Sellers:
The current market conditions present both challenges and opportunities for sellers in the Coachella Valley. With increased inventory and longer average days on market (DOM), sellers must price their properties competitively to attract buyers. While the median and average sale prices have decreased, maintaining a realistic pricing strategy can help sellers remain appealing in a market where buyers have more options. Additionally, the steady sales price to list price ratio suggests that homes are selling close to their listed prices, emphasizing the importance of accurate and strategic pricing.
Interest rates continue to challenge our market. The average 30-year fixed-rate mortgage currently sits at 6.92%, while today’s 15-year fixed mortgage rate is 6.41%, and the jumbo 30-year fixed rate is 7.02%. Rates are typically two points higher on second-home and investment-home purchases.
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 June 2024 vs. June 2023 has decreased in all cities except for Cathedral City (+11%), Bermuda Dunes (+75%), and Indio (+16%).
Regarding Average Sale Price, Indian Wells stood out with a strong (+49%) increase over last June’s sales. All cities in the Coachella Valley experienced an increase in average sales price except Desert Hot Springs (-6%) and La Quinta (-36%).
The Number of Days on the Market Increased for all cities in the Coachella Valley Except Palm Desert (-3%), Bermuda Dunes (-47%), and Coachella (-38%).
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.
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