Seasonal Inventory Drop and Stable Home Prices in the Coachella Valley

The Coachella Valley real estate market in July 2024 is marked by our typical seasonal decline in inventory and stable home selling prices. Sellers are finding themselves with less competition and quicker sales, while buyers must navigate a tighter supply of homes and act decisively when properties become available. Let’s break down the key market metrics and explain what these trends mean for those looking to make a move in today’s evolving real estate landscape. 

SALES TRENDS

Number of Homes Sold

In July 2024, 514 properties were sold in the Coachella Valley. While this represents a slight decrease of 3.02% from the 530 homes sold last month, it is still a positive indicator, marking a 1.18% increase compared to the 508 homes sold in July 2023. This steady level of sales activity suggests ongoing demand in the market, underpinned by solid buyer interest.   

Inventory of Homes for Sale

The inventory of available homes for sale in July 2024 stood at 2,303 properties. While this reflects a decline of 12.70% from the previous month’s inventory of 2,638 homes, it’s important to note the inventory is typically seasonal, and the number of homes available for sale tends to drop throughout the summer before rising later in the year. However, it is essential to note that this represents a 14.81% increase over the inventory levels of July 2023. The increase in inventory compared to last year provides buyers with more options, yet the monthly decrease signals a potential tightening in the market, which could impact future availability.

Median & Average Sale Price

The average sale price in July 2024 was $728,546, a decrease of 7.17% from last month’s average of $784,820. Despite this monthly drop, the average sale price remains consistent with July 2023 levels, indicating sustained property values in the valley. The median sales price was up 5.74% over last year, reinforcing the long-term value in home values across the Coachella Valley.

Average Days on Market (DOM)

Homes in the Coachella Valley spent an average of 67 days on the market in July 2024, reflecting a 9.46% decrease from June’s average of 74 days. However, this figure is up 9.84% from the 61 days recorded in July 2023. The increase in DOM year-over-year suggests a slight shift towards a more balanced market, where buyers are taking more time to make decisions. However, the overall decrease from last month indicates that well-priced properties are still moving relatively quickly.

New Listings 

The number of new listings in July 2024 was 678, marking a significant decrease of 23.13% from June’s 882 new listings. This also represents a 2.73% decline compared to July 2023, positioning July 2024 as the month with the lowest level of new listings compared to the previous two years. The reduction in new listings could indicate a tightening of supply, contributing to decreased overall inventory and potentially intensifying buyer competition.

What It Means For Buyers:

The current Coachella Valley real estate market presents improving conditions for buyers, with increased inventory compared to last year and new listings offering a wider selection of homes. Stable average sale prices, combined with longer average days on market, provide opportunities for buyers to negotiate better deals and take their time making informed decisions. The market is shifting towards a more balanced market.

What It Means For Sellers:

The current market conditions present both challenges and opportunities for sellers. With longer average days on market, sellers must price their properties competitively to attract buyers. While the median and average sale prices have stabilized, maintaining a realistic pricing strategy can help sellers 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

Interest rates, which have continued to challenge our market, are starting to show some downward trends. The average 30-year fixed-rate mortgage currently sits at 6.57%, while today’s 15-year fixed mortgage rate is 5.99%, and the jumbo 30-year fixed rate is 6.73%. Rates are typically two points higher on second-home and investment-home purchase.

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 July 2024 vs. July 2023 has all decreased except for Desert Hot Springs (+61%), Rancho Mirage (+22%), Palm Desert (+2%) and La Quinta (+5%). Bermuda Dunes remained the same. 

Regarding Average Sale Price, Indio stood out with a notable (+24%) increase over last July’s sales. All cities in the Coachella Valley experienced an increase in average sales price except Palm Springs (-29%), Bermuda Dunes (-15%), Indian Wells (-20%) and Coachella (-14%).

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 - LA QUINTA

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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