Rising Inventory and Median Sale Prices In The Coachella Valley

The Coachella Valley real estate market continues to evolve, offering both opportunities and challenges for buyers and sellers. As we enter the final quarter of 2024, key trends are emerging: inventory levels are rising, with more homes available for sale, while average sale prices have softened, particularly in higher-end properties. At the same time, mid-range home prices are holding steady, and new listings continue to increase. Whether you’re looking to buy or sell, understanding these shifts can help you make informed decisions in this dynamic market. 

SALES TRENDS

Number of Homes Sold

In September 2024, 376 properties were sold, marking a 19.66% decline from August and an 11.94% decrease compared to September 2023. While sales have slowed, this trend reflects seasonal shifts and market stabilization following high-demand periods earlier this year.   

Inventory of Homes for Sale

Inventory levels have risen, with 2,415 homes available for sale in September 2024. This represents a 1.64% increase from the previous month and a 15.38% rise compared to September 2023. With more properties on the market, potential buyers have a broader selection, positioning sellers strategically.

Median & Average Sale Price

The average sale price in September 2024 was $717,162, reflecting a 4.40% decline from August and a 9.11% decrease compared to September 2023. On the other hand, the median sale price rose to $581,500, up 2.44% from August and 7.69% higher than in September 2023. 

This divergence between average and median prices suggests that while higher-end properties may sell at slightly lower prices, the broader market remains robust, with mid-range properties continuing to appreciate in value.

Average Days on Market (DOM)

Homes spent an average of 71 days on the market in September, a 1.43% increase from August and 10.94% longer than in September 2023. While properties take slightly longer to sell, this shift aligns with rising inventory and gives buyers more time to make informed decisions.

New Listings 

There were 917 new listings in September 2024, representing a 7.88% increase from August and a 7.63% rise compared to the same period in 2023. This steady influx of new properties indicates continued confidence in the market and offers fresh opportunities for buyers.

What It Means For Buyers:

For buyers, the current market presents a favorable mix of opportunities. With average sale prices down by 4.40% from last month and 9.11% lower than last year, higher-end homes may offer more room for negotiation, providing great potential for buyers in this segment. However, the median sale price has risen by 2.44% month-over-month and 7.69% year-over-year, indicating continued strong demand for mid-range properties, where competition remains. 

On the positive side, inventory is up by 15.38%, giving buyers a more comprehensive selection of homes, and with average days on market increasing to 71 days, there is more time to make thoughtful decisions. Overall, the market offers more options and flexibility, making it a good time for buyers to explore opportunities, particularly with expert guidance to navigate these trends effectively.

What It Means For Sellers:

The Coachella Valley market remains strong for sellers, with several positive indicators. Although the average sale price has decreased by 4.40% from August and 9.11% year-over-year, the median sale price is up by 2.44% from last month and 7.69% higher than in September 2023, showing that mid-range homes are still appreciating and in demand. 

Additionally, while homes stay on the market a bit longer, with average days on the market rising to 71 days, the growing inventory of 15.38% from last year indicates a healthy and active market. Sellers can feel confident listing their homes as new listings increase. With proper pricing and strategic marketing, sellers can attract motivated buyers and secure favorable deals.

INTEREST RATES

Interest rates have risen slightly since reaching a two-year low last month. The average 30-year fixed-rate mortgage currently sits at 6.27%, while today’s 15-year fixed mortgage rate is 5.75%, and the jumbo 30-year fixed rate is 6.45%. 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 September 2024 vs. August 2023 has all decreased except for Cathedral City (+14%), Bermuda Dunes (+50%), La Quinta (+11%), and Indio (+8%). 

Regarding Average Sale Price, Indio stood out with a strong (+23%) increase over last September’s sales. All cities in the Coachella Valley experienced a decrease in average sales price except Palm Springs (+5%), Cathedral City (+3%), Palm Desert (+10%), and Indio (+23%).

The Number of Days on the Market Increased for all cities in the Coachella Valley Except Rancho Mirage (-7%), Indian Wells (-44%), La Quinta (-1%), and Indio (-19%).

CITY WATCH - INDIO

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. 

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