The housing market is readjusting to the fed’s increase in interest rates, and the Coachella Valley is not exempt from those effects. Prices are still increasing, but much slower than last year, and the number of sales continues to drop.
Still, In October’s housing report, local realtors and analysts urge buyers and sellers alike to manage their expectations.
“It is important during times like this to follow the data and not the many alarming comments people often make,” the report stated. “[I]t’s hard to ignore the effects higher interest rates are having on both buyers and sellers.”
The median price of a detached home in the Coachella Valley in October was $675,000, which was $5,000 higher than September and 12.5% higher than October of last year . “So far, the price correction many have feared has been relatively mild,” notes the report. “Some of it, in fact, is seasonal.”
- Based on the data in the report, analysts concluded that, “Year over year price changes in every city are slowing, especially in the detached market.”
The three-month average of sales in October was 534 units a month, 34% below last year and 28% below the pre-pandemic average.
- Palm Springs had one of the largest percentage declines in home sales compared to last year at 35%.
Looking at inventory, the valley stood at 2,048 units on Nov. 1, which is 241 units higher than the month prior and 1,133 units more than a year ago.
- Analysts are watching this number closely and expect inventory to reach 2,500 units by February, which is still 500 units below the pre-pandemic average.
- Interestingly, the report points out that this monthly increase is opposite to almost every other California region, where inventory generally declined last month.
The number of days in market also indicates a slowdown. Last month the median number valley-wide was 35 days – 10 days more than last year.
Key numbers: This time last year, 46% of sales occurred above list price. Now, that figure is about 21%. Analysts are confident we’re headed toward the historic norm of 10%.
