How our market has shifted over the summer, and where it’s headed.
While our market has begun to shift in favor of buyers, it’s not a full-blown buyer’s market. Today I’ll update you on the summer market.
Our absorption rate remains low because of our lack of inventory, which keeps our prices strong. July’s median price for a detached home in the Coachella Valley was $710,000, a $10,000 monthly increase and a 19.3% year-over-year increase. We’ve now entered the seasonal period when home prices usually slow or even begin to decline, but we have not seen much of that this year. However, high sales and low inventory, which have driven up prices, are rapidly reversing. We should begin seeing a price correction soon.
On August 1, Coachella Valley had 1,633 units in its inventory, which is 801 units more than last year. Inventory has finally started to grow, and it’s occurring during the season when it normally contracts. It’ll be important to watch these levels this September since it’s the month when inventory normally begins to expand. If this pattern continues, we could possibly renormalize inventory, and reach 2,500 to 3,000 units by January or February.
On August 1, the Coachella Valley’s months of sales ratio was 1.9 months, which is up 1.2 months from last year. Like inventory, this is the highest ratio in almost two years. The ratio remains considerably below the 3 to 3.5 months, which is normal for late summer. However, despite inventories rising and sales falling, the months of sales ratio isn’t back to normal levels yet. If inventories rise as expected, the ratio could reach normal levels by the year’s end.
With inflation on the rise, mortgage rates climbed to over 6% but have since settled back between 5% and 6%. However, this has taken a big bite out of affordability for most buyers, and some buyers have been completely priced out of our market.
What does this all mean? Getting into the market now may be a more affordable option if you’re considering buying in our area instead of waiting for home prices to continue to appreciate as expected. If you’re a seller, projections show there will be more competition and diminished demand due to higher interest rates and fewer buyers. You will have less competition and the potential to get a higher price if you sell now instead of waiting until later this year.
If you have any questions, we’d love to help you. Feel free to reach out to us by email, text, or phone call. We look forward to hearing from you and helping you reach your real estate goals.
This Blog is courtesy of Will Cook, WILL COOK GROUP| Keller Williams Luxury Homes, Palm Springs, CA | DRE #01879277
Ranked in the top 1% of all agents valley wide and named one of the Palm Springs Life Top Realtors for 2019, 2020, 2021, and 2022; Will is an Associate Broker/Team Leader of the WILL COOK GROUP with K....
Should you require assistance in navigating our website or searching for real estate,
please contact our offices at
The information being provided by SoCalMLS, CRISNet Regional MLS, CARETS is for the consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumer may be interested in purchasing. Any information relating to real estate for sale referenced on this web site comes from the Internet Data Exchange (IDX) program of the SoCalMLS, CRISNet Regional MLS, CARETS. ZipRealty, Inc. is not a Multiple Listing Service (MLS), nor does it offer MLS
access. This website is a service of ZipRealty, Inc., a broker participant of SoCalMLS, CRISNet Regional MLS, CARETS. This web site may reference real estate listing(s) held by a brokerage firm other than the broker and/or agent who owns this web site.
The accuracy of all information, regardless of source, including but not limited to open house information, square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals. The data contained herein is copyrighted by SoCalMLS, CRISNet Regional MLS, CARETS and is protected by all applicable copyright laws. Any unauthorized dissemination of this information is in violation of copyright laws and is strictly prohibited.
Copyright 2022 SoCalMLS, CRISNet Regional MLS, CARETS. All rights reserved. Certain information contained herein is derived from information which is the licensed property of, and copyrighted by, SoCalMLS Inc
Data last updated: September 27, 2022 9:45 PM UTC
If a listing displays "Short Sale/Subject to Lender Approval" then that listing has been identified by the seller and the listing broker as a "Short sale." This means that, at the listed price, the proceeds from the sale may not be adequate to pay all liens and costs of sale. Any offer made that does not fully cover the existing amount(s) owed to the lienholder(s) plus the costs of sale could be subject to lienholder approval, which approval may be exercised at the sole and exclusive discretion of the lienholder(s).
and that real estate professionals from WILL COOK GROUP | Equity Union Real Estate | DRE# 01879277 and lenders may call/text you about your inquiry,
which may involve use of automated means and prerecorded/artificial voices. Message frequency varies.
Text HELP for help or STOP to cancel. You don't need to consent as a condition of buying any property,
goods or services. Messages/data rates may apply. Additional information about data use is in our