October 2023 Insights: Navigating the Coachella Valley Real Estate Market
Keeping a pulse on the Coachella Valley’s real estate market is essential for anyone involved in the housing industry, both from a potential buyer’s perspective and as well as a seller’s. Our monthly market reports provide an accurate and detailed snapshot of the latest trends and changes in property values, inventory, and buyer activity across this diverse region. In this month’s edition, we break down the numbers and analyze what they mean for the market, helping you make informed decisions whether you’re looking to buy, sell, or simply stay updated on the greater Coachella Valley’s real estate landscape. Let’s take a look at October 2023.
When examining home sales within the seven of the desert cities, Indian Wells notably experienced the steepest decline, with a 33% reduction from the previous year. This significant decrease is likely connected to the concurrent 33% drop in available inventory from September this year. Specifically, median single-family home prices in Indian Wells dropped by 35% from last year holding at a substantial $1.1M.
In contrast, Palm Springs has presented some positive trends, especially in the condo market:
- Sales of condos in Palm Springs climbed by 20% with 19 units sold in October 2023.
- Inventory for these condos surged by 55% since last October, marking the 2nd highest increase in the desert.
- This is only slightly behind Cathedral City’s 60% increase, with 32 units available last month.
- Median sales price for Palm Springs condos rose by 22%, reaching $440K, which is second in terms of price growth to Indian Wells, where condo prices soared by 30% to a median of $725K.
We’re also observing an elongation in the Days on Market (DOM):
- Single-family homes across the desert are now averaging 51 days on the market, up by 12% from last year.
- Condos have seen a more significant increase since last year, with a 61% more DOM, now at 70 days on average.
- Cathedral City, in particular, is averaging a 110-day sell time for condos, which might be attributed to factors such as higher HOA/land lease costs.
- However, in Indio, condos are selling much faster, averaging just 19 days on the market.
- Cathedral City and Palm Desert report a rise in single-family home sales, while single-family sales in Indian Wells and La Quinta have decreased.
- Condo sales have surged in Indio, but other areas show mixed results.
Examining the real estate dynamics from October 2023 compared to September 2023, we observe a number of downward trends.
- A downtrend is observed in median sales prices for most areas, impacting both single-family homes and condos.
- Notable exceptions include Cathedral City and Indio, where single-family home prices have risen.
- Palm Springs condos break the trend with a rise in median sales prices.
- Inventory levels are up, providing more choices for buyers, particularly in Palm Springs and Cathedral City for single-family homes, and more broadly for condos.
- There’s a mixed bag for days on market, with some areas showing quicker sales.
- Single-family homes in La Quinta and Indio are selling faster, as are condos in Rancho Mirage and Indian Wells.
- Stability or slight decreases are seen in the percentage of the list price achieved.
- La Quinta and Indio condos have seen significant improvements in achieving list prices.
Inventory across the valley stands at 1,467 units, which is a 16% increase over last year. Palm Desert holds the highest inventory with 348 units available but maintains a seller’s market with under 3.5 months of inventory. Conversely, Palm Springs single-family homes are in a balanced market with about 6 months of inventory, yet with the highest median sales price per square foot at $568 and homes selling within 96% of the list price, sellers may still hold a slight upper hand.”
What this means to you:
For buyers eyeing a single-family home in Palm Desert, La Quinta, or Indio, the range of choices remains robust, albeit slightly reduced from last year’s inventory. These areas are rich with opportunities, offering diverse housing styles to fit a variety of preferences. While you might notice a decrease in available properties compared to the previous year, the current selection is still substantial, allowing you to find a home that meets your criteria.
In contrast, buyers focusing on Palm Springs, Cathedral City, and Rancho Mirage will encounter fewer options compared to other cities in the desert. However, the silver lining is that the number of listings has generally increased this year. Regardless of your target location, the current market dynamics hint at an increase in negotiating leverage for buyers, providing a chance to secure a favorable deal compared to the more seller-dominated market of last year.
For sellers, the market has shifted towards equilibrium, making correct pricing more crucial than ever. In a landscape where inventory is on the rise, a home priced in line with current market expectations is likely to complete a sale within 90 days. However, it is essential to recognize the regional price reduction—averaging a 10% dip across the valley since last year—and the impact of persistently high-interest rates on buyers’ budgets. Therefore, setting a realistic price that reflects these conditions is fundamental to attracting serious offers and achieving a timely sale.
Please note that the insights shared here offer just a glimpse into the October 2023 Coachella Valley real estate market recap for this month. If you’re seeking a deeper understanding of the overall market trends or have questions about a specific area within the valley, we encourage you to get in touch with us. Our team is equipped with the full array of data, knowledge, and expertise to provide you with comprehensive information and personalized advice. Whether you’re making your first foray into the market or looking to expand your portfolio, a direct conversation with our experts can equip you with the tailored information you need. Call us today to explore the possibilities that await you in this dynamic real estate landscape.
The information contained in this market report represents the informed opinions of our real estate team and is intended for general information purposes only. We have drawn upon data provided by CDAR (California Desert Association of Realtors) and Desert Dynamics, and we believe this information to be accurate and reliable at the time of publication. However, we do not warrant the completeness or accuracy of the information presented and cannot be held responsible for any errors or omissions.
This report does not constitute financial, legal, or professional advice. It should not be considered as a substitute for personalized advice from a licensed professional or as a basis for any investment decision. Readers are strongly encouraged to perform their own due diligence and consult with professional advisors before making any real estate decisions.
Our team strives to provide insightful analysis based on the data available, but we acknowledge that the real estate market is subject to fluctuations and changes that are beyond our control. As such, we advise all interested parties to consider current market conditions and future projections with caution and to seek further information where necessary.
By using the information in this report, you agree to do so at your own risk and accept full responsibility for your decisions. Our team does not assume liability for any losses incurred due to the use of or reliance on the information provided herein.