Coachella Valley Real Estate Market Update - July 2024
As summer boils on, the Coachella Valley real estate market continues to show intriguing trends. Here’s a detailed look at how single-family homes and condos are performing and what it means for buyers and sellers.
Valley Wide Market Overview
SINGLE-FAMILY HOMES
The single-family home market in the Coachella Valley is holding stable through the summer heat with a median sales price of $856k, reflecting a slight upward trend from June. Sellers are still achieving 98% of their listing price, underscoring the importance of setting a competitive and realistic price to meet buyer expectations. The market saw an average of 39 homes sold per city, a sign of steady, if slightly reduced seasonal buyer activity. With the absorption rate sitting at 21%, and homes spending an average of 69 days on the market, buyers are taking more time to make decisions, allowing for more strategic negotiations in this balanced market. With an average of 273 active listings per city and 407 new listings valley-wide, the inventory offers ample opportunities for both buyers and sellers to find a match that meets their needs.
CONDOS
In the condo market, the median sales price has risen to $481k, marking a strong 4% increase from the previous month and highlighting sustained demand in this segment. Condos are selling at 97% of the list price, indicating that while the market is competitive, there is still some room for negotiation. With an average of 23 condos sold per city a moderate figure is presented that reflects ongoing buyer interest despite tighter inventory. An absorption rate of 28% suggests a brisk pace of sales, and condos are moving slightly faster than single-family homes, with an average 70 days on market. The price per square foot for condos is $339, providing an attractive option for buyers looking for value. With 621 active listings and 176 new listings across the valley, the condo market offers diverse choices, though buyers may need to act quickly due to the relatively high demand.
MARKET MOMENTUM
The Coachella Valley real estate market is maintaining a balanced momentum, with single-family homes holding their value and condos seeing continued price appreciation. Single-family homes are taking a bit longer to sell, suggesting that buyers have more opportunities to explore their options and secure favorable terms. Sellers, however, are still achieving close to their asking prices, which speaks to the effectiveness of realistic pricing and strategic marketing. Conversely, the condo market is experiencing a notable increase in prices, driven by strong demand, even as the number of sales remains steady. This trend indicates that buyers are willing to invest more in condos, recognizing the value and potential return on investment in this segment. However, the inventory constraints suggest that buyers should be prepared to move quickly when a desirable property becomes available.
Overall, the market remains balanced, with neither buyers nor sellers having a distinct upper hand. This equilibrium is evident in the alignment of sales prices with listing prices, reflecting a market where transactions are occurring close to the expected values. The steady absorption rates across both single-family homes and condos underscore the consistent interest from buyers, contributing to a healthy market dynamic. We may see some significant changes in the coming months due to changes in the industry and the requirement of buyer representation agreement to view homes, but with data trailing on a 30-day schedule we may not see the full impact until September as the properties that will be recorded as closed in August’s recap are already under contract today. For more information on the NAR Settlement see the NAR Settlement post.
PRICING STRATEGIES
Buyers should be prepared to act quickly, especially in the condo market where prices are on the rise. Offering close to the list price is often necessary in this competitive environment and lowball offers may be less successful. Buyers should work closely with their real estate agents to assess fair market value and be ready to make strong offers.
City By City July 2024
Palm Springs:
In July 2024, the Palm Springs real estate market shows signs of a slight cooling, with the median sales price for single-family homes dropping to $980,000. While the average sales price also fell, homes are still selling at 98.55% of their listing price, indicating strong buyer interest. The decrease in sales volume and longer days on market (72 days) suggest that buyers have more negotiating power and time to explore options. For condos, the market is more competitive, with a significant price increase to $428,000 and condos selling quickly at 98.25% of the list price. This robust condo market offers opportunities for sellers to secure strong offers close to asking prices, while buyers need to act swiftly. The overall market dynamics in Palm Springs favor informed decision-making and realistic pricing strategies for both buyers and sellers.
Cathedral City:
Cathedral City’s market in July 2024 reflects steady growth, particularly in the single-family home segment, where the median sales price has risen to $603k one of only two cities to see a double-digit month over month increase. Homes are selling at 100 % of their listing price, demonstrating strong demand and competitive pricing. However, the absorption rate has slowed, and sales volume has dipped, indicating that while prices are strong, the pace of sales is slightly slower. This could provide buyers with a bit more leverage, especially if they are patient and strategic in their offers. The condo market, on the other hand, saw a small price decrease to $325,000, but properties are selling faster, with a sharp drop in days on market to 51 days. This suggests that the condo market is more fluid, with opportunities for quick transactions. Sellers of condos can benefit from this fast-paced market, while buyers may find some good deals if they act quickly. Overall, Cathedral City offers a dynamic market with opportunities for both buyers and sellers, depending on their approach and timing.
Rancho Mirage:
In Rancho Mirage, July 2024 saw a 13% increase in median single-family home prices year over year but a 6% drop month over month with the median sales price landing at $1,100,000. Despite this recovery, homes are selling at 95.79% of their listing price, indicating that buyers are negotiating more aggressively, which could present opportunities for those looking to purchase high-end properties. The steady sales volume and an average days on market of 75 days suggest a stable but cautious market. The condo market remains consistent, with a median sales price of $572,000 and condos selling at 95.95% of their listing price. While the sales pace for condos is relatively quick, the slight decrease in average sales price indicates that buyers are being selective. For sellers, it’s essential to price realistically and be prepared for negotiations to close deals efficiently. Rancho Mirage continues to offer a balanced market, but both buyers and sellers need to stay adaptable to the ongoing shifts.
Palm Desert:
Palm Desert’s real estate market in July 2024 continues to show stability with a slight upward trend. The median sales price for single-family homes is $650,000, with homes selling at 98.25% of their listing price, reflecting a balanced market. The consistent sales pace and steady days on market (65 days) suggest that both buyers and sellers can expect a predictable transaction process. The condo market also reflects modest growth, with the median sales price increasing to $499,000. Condos are selling at 96.87% of their listing price, though they are taking slightly longer to sell, with an average of 80 days on market. This stability offers buyers the chance to make considered decisions, while sellers can be confident in setting realistic prices that will attract serious buyers. Palm Desert remains a strong market for both property types, offering opportunities for all parties involved.
Indian Wells:
The Indian Wells market in July 2024 shows significant adjustments, particularly in the luxury segment, with the median sales price for single-family homes dropping to $1,194,000. Despite the price decline, homes are still selling at 96.59% of their listing price, suggesting that while there is buyer caution, there remains a strong demand for high-end properties. The condo market also experienced a downturn, with the median sales price falling to $514,000 and condos selling at 93.43% of their listing price. This cooling trend indicates that both buyers and sellers need to recalibrate their expectations. Buyers might find better deals in this market, especially if they are willing to negotiate, while sellers should focus on realistic pricing to attract buyers in a slower market. The longer days on market, especially for condos, suggest that patience will be required on both sides. Indian Wells is currently a market in transition, offering opportunities for strategic moves by both buyers and sellers.
La Quinta:
La Quinta’s real estate market in July 2024 shows resilience, with single-family home prices rising to a median of $844,975. The average sales price has also increased, reflecting strong demand, particularly in the higher-end market. However, the slower sales volume and a slight increase in days on market suggest that buyers have more time to make informed decisions. The condo market is notably strong, with a significant price increase to $700,000 and condos selling at 96.81% of their listing price. This suggests a highly competitive environment where buyers need to act quickly to secure a property. Sellers in La Quinta, especially those with condos, can expect to see strong interest and potentially quick sales, provided they price their properties appropriately. Overall, La Quinta offers a robust market with opportunities for both buyers and sellers, particularly those who are strategic and informed.
Indio:
Indio’s market in July 2024 reflects steady growth and healthy market dynamics. The median sales price for single-family homes increased to $590,000, with homes selling at 98.35% of their listing price, indicating a market where sellers are achieving close to their asking prices. The quick sales pace, with an average days on market of 77 days, suggests that demand remains strong. The condo market also shows slight price increases, with a median sales price of $330,000 and condos selling at 97.34% of their listing price. This indicates a stable market where both buyers and sellers can expect smooth transactions. Buyers in Indio should be prepared to act quickly, as the market is moving at a healthy pace, while sellers can price their properties confidently, knowing that demand is solid. Indio continues to offer a balanced market with opportunities for well-timed transactions.
Overall:
The July 2024 real estate market across the Coachella Valley demonstrates a resilient and balanced environment, with each city presenting unique dynamics that influence buyer and seller behavior. Single-family homes across the valley show stability, with most cities experiencing slight price increases and steady sales, though the pace of transactions is slowing, giving buyers more time to negotiate. Condos, on the other hand, continue to be in high demand, particularly in cities like La Quinta and Palm Springs, where prices are rising, and properties are selling quickly. This balanced market environment means that neither buyers nor sellers hold a distinct advantage, making strategic pricing and informed decision-making crucial for success. As the market evolves, staying attuned to these trends will be key for those looking to capitalize on the opportunities available in this dynamic region.
