fbpx

Greater Palm Springs Real Estate Housing Report

October 2022

PRICES
  • The median price of a detached home in the Coachella Valley is currently $675,000, which is $5,000 higher than last month and up 12.5% year over year.
  • Only three cities – Indian Wells, Coachella and Desert Hot Springs – now have year over year gains above 20%. Palm Desert and Palm Springs have gains of 8.2% and 5.6% respectively.
  • The median price for attached homes was $456,250, which is down for the fifth month but still 23% higher than last year.
  • In the attached market, gains are higher and range from 36.8% to 14.
  • So far, the price correction many have feared has been relatively mild. Some of it, in fact, is seasonal.
SALES
  • Home sales continue to decline. The three-month average of sales in October was 534 units a month, which is 34% below last year. Before the pandemic October sales averaged 746 units per month, so sales are running about 28% below average.
  • Every city except Coachella has lower sales compared to a year ago. The largest percentage declines are in the cities of Cathedral City, La Quinta and Palm Springs, where sales are lower by 49%, 43% and 35% respectively.
INVENTORY & “MONTHS OF SALES” RATIOS
  • On November 1st , Valley inventory stood at 2,048 units, which is 241 units higher than last month and 1,133 units more than a year ago. This monthly increase is again opposite to almost every other California region, where inventory generally declined last month.
  • The Valley’s “months of sales” ratio was 2.6 months which, like inventory, is higher than last month. The ratio is still considerably below 4.0 months, which is normal for this time of year.
  • Ratios have been rising in every city. Indian Wells have the lowest ratios at 2.2 months. The highest ratios are in Desert Hot Springs at 2.9 months and Thousand Palms at 3.0 months.
DAYS IN MARKET
  • At the end of October, the median number of “days in the market” throughout the Valley was 35 days, which is ten days more than last year. 
  • The low that the market has reached is now expected to rapidly increase to 50 or 60 days, which is historically “normal” for the region.
  • The city of Indian Wells has the lowest median selling time for detached homes at 25 days, followed by Rancho Mirage, now at 29 days.
  • In the attached market, Desert Hot Springs continues to have the shortest selling time at 23 days, followed by Indio at 30 days.
PRICE DISCOUNTS/PREMIUMS
  • At the end of October, only 21.6% of sales occurred above list price compared to 46.2% a year ago.
  • This ratio continues to move back toward its historic norm of around 10%.
  • Currently, only one city has an average selling premium – Bermuda Dunes; all the others have average discounts. In most cities these discounts are running from 1% to 2%.

12-Month Change In Average Prices

Price of The Average Size Single Family/Detached Home

Average Size HomeAvgerage Price Per SFPrice of Avg. Size HomePrice One Year Ago12 Month Change2011-12 Price Low% From Low
Indian Wells3,450 $515 $1,777,914 $1,379,344 29%$666,885 167%
Coachella1,700 $281 $478,125 $380,435 26%$111,367 329%
Desert Hot Springs1,600 $266 $425,624 $353,432 20%$86,656 391%
Indio2,000 $296 $592,593 $494,834 20%$156,340 279%
Rancho Mirage3,175 $418 $1,328,619 $1,139,127 17%$506,317 162%
La Quinta2,550 $367 $937,008 $835,916 12%$318,164 195%
Cathedral City1,800 $310 $558,313 $508,673 10%$153,216 264%
Palm Desert2,200 $342 $751,385 $694,148 8%$302,302 149%
Palm Springs2,175 $571 $1,241,889 $1,175,878 6%$323,879 283%
Bermuda Dunes2,500 $311 $777,138 $752,884 3%$239,325 225%

Price of The Average Size Condominium/Detached Home

Average Size HomeAvgerage Price Per SFPrice of Avg. Size HomePrice One Year Ago12 Month Change2011-12 Price Low% From Low
Palm Springs1,250 $380 $475,382 $371,392 28%$129,788 266%
Bermuda Dunes1,450 $285 $413,610 $332,935 24%$89,117 364%
Palm Desert1,600 $337 $539,759 $446,138 21%$197,896 173%
Cathedral City1,250 $264 $329,512 $274,863 20%$80,544 309%
La Quinta1,750 $366 $641,221 $540,821 19%$247,713 159%
Indio1,050 $283 $297,627 $255,645 16%$56,396 428%
Indian Wells1,950 $344 $671,300 $579,892 16%$259,126 159%
Rancho Mirage1,775 $308 $546,269 $476,570 15%$211,030 159%

Home Sales By City

  • For another month, every city except Coachella had lower sales compared to a year ago.
  • The largest percentage declines were in the cities of Cathedral City, La Quinta and Palm Springs, where sales were lower by 49%, 43% and 35% respectively.

Home Sales By Price Range - 3 Month Average Sales

  • This graph shows average three-month sales by price bracket. While every price bracket shows a sales decline, the largest declines are again in sales of homes priced under $400k.
  • Sales of homes priced from $200k to $300k are off 65%. For homes priced from $300k to $400k, sales are off 50%.
  • However, sales of homes priced over $800k are doing much better, with unit sales of homes between $800k to $900k almost the same.
  • Sales of homes over $1,000,000 are down 22%.

Months of Sales By Price Range

  • As the graph clearly shows, ratios in every price bracket far exceed year ago levels.
  • The chart continues to show both the evenness of the inventory recovery, and that the recovery is occurring across all price ranges.

Months of Sales By City

  • Ratios have been rising in every city. Indian Wells have the lowest ratios at 2.2 months.
  • The highest ratios are in Desert Hot Springs at 2.9 months and Thousand Palms at 3.0 months.
  • It is again noteworthy how close the ratios are in every city.

Median Days In Market - Detached Homes

Median Days In Market - Attached Homes

  • Average selling times have been rapidly increasing. The city of Indian Wells has the lowest median selling time for detached homes at 25 days, followed by Rancho Mirage now at 29 days.

Average Price % Discount - Detached Homes

Average Price % Discount - Attached Homes

  • These bar charts show the average price discount/premium for both detached and attached homes in the major cities of the Valley.   The data is the “average” value instead of “median” value because it’s a better metric during periods when so many homes are selling near list.
  • Currently, only one city has an average selling premium – Bermuda Dunes; all the others have average discounts.
  • In most cities these discounts are running from 1% to 2%.

Coachella Valley Housing Annual Inventory - October 2022

  • On November 1st , Valley inventory stood at 2,048 units, which is 241 units higher than last month and 1,133 more than last year.
  • This monthly increase is again opposite to almost every other California region, where inventory generally declined slightly last month. Some of this increase in the Valley is seasonal and if the pattern continues inventory will probably reach 2,500 units by February. Pre pandemic norms, however, are usually over 3,000 units.

Source:  The Desert Housing Report October 2022
PSRAR and CDAR by Market Watch LLC.