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Greater Palm Springs Real Estate Housing Report

April 2023

PRICES
  • The median price of a detached home in the Coachella Valley ended the month at $685,000, which is up 1.5% year over year.
  • The median attached price surged $20,000 in April to end at $480,000. This is the second month of strong price growth with the current price only 2% below last May’s record price of $491,000.
  • Every city but Desert Hot Springs has a year over year price decline in its average size detached home.
  • Price setbacks in the cities of La Quinta, Indio and Palm Desert range from minus 2.2% to minus 5%.
  • The largest declines are in the high-end cities of Indian Wells and Palm Springs.
  • Prices in the attached market remain relatively stable.
SALES
  • The three-month average of sales rose 120 units to 665 units a month from 545 last month. Most of this is seasonal and  the average is expected to continue to increase for another month.
  • The 12-month average of sales, which takes out seasonality, shows total sales averaged 601 units a month. This is the 21st consecutive monthly decline.
  • The largest percentage declines in sales were in Cathedral City, down 50%, followed by Desert Hot Springs, down 47%, and Indio, down 36%.
  • The cities of Coachella and Palm Desert continue to have the smallest percentage decline of 18% and 22% respectively.
INVENTORY & MONTHS OF SALES RATIOS
  • Valley inventory was 1,876 units, which is 100 units less than last month but 1,017 units greater than last year.
  • The primary reason inventory isn’t growing in this low sales environment is that monthly new listings continue to remain near historic lows.
  • On May 1st, the Valley’s “months of sales” ratio was 3.1 months, which is slightly less than last month. This fundamental ratio, which measures supply versus demand, is slightly less than historic averages for this time of year.
DAYS IN MARKET
  • The average selling time in the region continues to increase.
  • At the end of April, the median number of “days in the market” in the Coachella Valley was 48 days, which is the same as last month but 27 days more than last year.
  • This ratio remains under its pre-pandemic average of 65 days.
PRICE DISCOUNTS/PREMIUMS
  • In April, 15.2% of sales sold above list price compared to 55.9% a year ago. Every city has an average selling discount for detached homes, which range from 0.0% for Coachella to 3.5% for La Quinta.
  • Attached homes range from average discounts of 1.6% in Cathedral City to 4.6% in Bermuda Dunes.

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
Desert Hot Springs1,600 $257 $411,864 $396,799 4%$86,656 375%
Cathedral City1,800 $313 $564,077 $568,134 -1%$153,216 268%
La Quinta2,550 $385 $981,888 $1,004,001 -2%$318,164 209%
Indio2,000 $279 $557,616 $581,731 -4%$156,340 257%
Palm Desert2,200 $340 $747,861 $787,600 -5%$302,302 147%
Rancho Mirage3,175 $418 $1,327,451 $1,415,364 -6%$506,317 162%
Coachella1,700 $239 $406,993 $447,059 -9%$111,367 266%
Bermuda Dunes2,500 $304 $759,346 $835,412 -9%$239,325 217%
Indian Wells3,450 $449 $1,549,341 $1,715,061 -10%$666,885 132%
Palm Springs2,175 $582 $1,266,427 $1,408,084 -10%$323,879 291%

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
Indian Wells1,950 $387 $754,869 $644,974 17%$259,126 191%
Cathedral City1,250 $286 $356,881 $317,658 12%$80,544 343%
Palm Springs1,250 $371 $463,599 $455,418 2%$129,788 257%
Rancho Mirage1,775 $327 $580,756 $579,648 0%$211,030 175%
Bermuda Dunes1,450 $276 $400,260 $400,260 0%$89,117 349%
La Quinta1,750 $391 $684,783 $689,020 -1%$247,713 176%
Palm Desert1,600 $329 $525,706 $543,182 -3%$197,896 166%
Indio1,050 $271 $284,331 $301,360 -6%$56,396 404%

Home Sales By City

  • Every city continues to have lower three-month average sales compared to last year. This shows that the sales decline is broad based throughout the region.
  • The largest percentage declines in sales were in Cathedral City, down 50%, followed by Desert Hot Springs, down 47% and Indio, down 36%.
  • The cities of Coachella and Palm Desert continue to have the smallest percentage decline of 18% and 22% respectively.

Home Sales By Price Range - 3 Month Average Sales

  • While every price bracket shows a sales decline, the largest declines continue to be in homes priced between $400k and $700k.
  • Sales of million-dollar homes have improved and are now down only 33%, while homes priced from $900k to $1m are down 25%, which is slightly better than last month.
  • To show how much price have increased over the last three years, in April of 2018 seventy-seven homes sold for over a million dollars.
  • This April 145 homes sold for more than a million. This increase in sales is due solely because more homes are now priced over a million dollars.”

Months of Sales By Price Range

  • The ratio in every price bracket continues to far exceed year ago levels. They all remain relatively close to the same value of three months. 
  • This means that the expected price stability should exist throughout the entire range of home prices.

Months of Sales By City

  • Six cities now have ratios of three months or less – Coachella, Indio, Indian Wells, Bermuda Dunes, Cathedral City and Desert Hot Springs. What’s notable is how close the ratios are in each city. No city has a ratio over four months.

Median Days In Market - Detached Homes

Median Days In Market - Attached Homes

  •  The cities of Coachella and Palm Springs have the lowest median selling time for detached homes at 21 days and 40 days respectively.
  • In the attached market, Palm Springs has the shortest median selling time at 26 days.

Average Price % Discount - Detached Homes

Average Price % Discount - Attached Homes

  • Every city has an average selling discount for detached homes, which range from 0% for Coachella to 3.5% for La Quinta.
  • Attached homes range from average discounts of 1.6% in Cathedral City to 4.6% in Bermuda Dunes.

Coachella Valley Housing Annual Inventory - April 2023

  • On May 1st , Valley inventory was 1,876 units, which is 100 units less than last month but 1,017 units greater than last year.
  • The primary reason inventory isn’t growing much in this low sales environment is that monthly new listings continue to remain near historic lows.
  • If the Valley’s seasonal pattern continues, it’s expected that inventory will continue to contract going into summer.

Source:  The Desert Housing Report April 2023
PSRAR and CDAR by Market Watch LLC.