Home sales in the Coachella Valley declined in June as inventory increased, a sign that a seasonal dip is starting to play out, although a bit later than usual.
State of play: According to the latest Greater Palm Springs Realtors Desert Housing Report, sales throughout the valley in June declined 23% compared to that month last year. That’s partially in line with the traditional seasonal sales slumps, and partially because of the lack of housing stock, especially homes priced under $500,000.
- The report states that’s because more homes are moving into higher price brackets. There were almost no sales of homes priced under $200,000 reported, including condos and townhomes.
Zoom in: In total, 1,531 homes were listed for sale as of July 1, an increase of 877 over the number available on that day last year, but still 800 fewer than were available on July 1, 2020. The lack of housing in all price ranges impacts the level of home sales.
- The largest year-over-year decrease in home sales in the valley was in La Quinta, where sales dropped by 43%. In that city, the price of the average sized detached home, or homes that don’t share a wall with another home, rose from $816,536 last year, to $1.049 million this year — a 28.6% increase.
- Desert Hot Springs was the only city in the valley to not experience a decline in sales. Housing sales actually increased in the city by 14%, most likely because homes there are among the most affordable in the valley.
Step back: Last month, we were the first to tell you to be on the lookout for prices cooling off slightly thanks to seasonal trends and other factors. Now with higher mortgage rates the report is once again tentatively forecasting a slight price drop.
What they’re saying: “Besides the seasonal slowdown, the forces that have been driving prices higher – high sales and low inventory – are starting to abate due to rising mortgage rates and high prices themselves, indicating that as mortgage rates increase, housing prices should decrease.” — Greater Palm Springs Realtors