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First 3 Quarter Desert Real Estate Market Review

Market Review

We continue to keep a close eye on the Desert Real Estate Market Review, looking for Trends in Time, Average Price and Price Bands to see Where the Action is in the Market and What Segments have a change from the same time period one year ago.

 

Palm Springs:

2014 2015
589 Sales 672 Sales 14% increase in sales
$609,635 $630,558 3% increase in average price
$270/ Sq Ft $286/ Sq Ft 6% increase in average price / square foot
109 DOM 101 DOM 7% decline in time on market

Palm Desert:

2014 2015
446 Sales 499 Sales 12% increase in sales
$560,547 $542,650 3% decline in average price
$207/ Sq Ft $213/ Sq Ft 3% increase in average price / square foot
124 DOM 126 DOM 2% increase in time on market

Indian Wells:

2014 2015
123 Sales 123 Sales No change
$1,270,246 $1,141,368 10% decline in average price
$324/ Sq Ft $318/ Sq Ft 2% decline in average price / square foot
190 DOM 155 DOM 18% decline in time on market

La Quinta:

2014 2015
703 Sales 791 Sales 13% increase in sales
$637,966 $620,497 3% decline in average price
$225/ Sq Ft $225/ Sq Ft No change
127 DOM 131 DOM 3% increase in time on market

Cathedral City:

2014 2015
359 Sales 416 Sales 16% increase in sales
$249,879 $283,357 13% increase in average price
$144/ Sq Ft $162/ Sq Ft 13% increase in average price / square foot
95 DOM 101 DOM 6% increase in time on market

Indio:

2014 2015
654 Sales 819 Sales 25% increase in sales
$287,033 $299,462 4% increase in average price
$145/ Sq Ft $147/ Sq Ft 1% increase in average price / square foot
106 DOM 114 DOM 8% increase in time on market

SUMMARY

The Valley is made up of several “Micro Markets” each with its own characteristics; for example, in the first 9 months of 2015 there has been an increase in the number of sales from 2014 to 2015 across the Valley with the strongest segment between $200,000 – $600,000 which represents more than 70% of the sales in the Valley.

There are a couple of notable exceptions; Rancho Mirage has seen a decline in the number of sales, prices and the price per square foot. Indian Wells has seen a decline in prices and the average price per square foot with the number of sales holding steady. Palm Desert and La Quinta have seen in increase in sales, but a decline in prices.

Luxury home sales or the upper tier pricing bands; the number of sales drop as prices increase in any market, however an interesting detail is the number of sales for homes priced between $900,000 – $999,000 this price band is down by more than one half to just 6 sales per month. The price band between $1m – $1.5m, picks up from there to an average of 22 sales per month.

Markets will act as markets do; a sustained decline in the number of sales precedes a decline in prices – as sales slow, prices must adjust to meet market expectations for sales to pick up again.

2015 Action Index by Price Band (Palm Springs to Indio)

$200,000-$400,000 (213 sales / month)
$400,000-$600,000 (90 sales / month)
$600,000-$800,000 (41 sales / month)
$800,000-$1m (19 sales / month)
$1m – $1.5m (22 sales / month)
$1.5-$2m (10 sales / month)
$2m + (8 sales / month)

The strong American Dollar compared to other currencies, such as the Canadian dollar, has had an impact on the demographics of our Buyer. In recent years past, the Canadian Buyer represented as much as 31% of our sales – today, the buyer is more likely to be domestic coming from the States and most likely, from our drive-markets such as Orange, LA & San Diego Counties.

Included with this detailed analysis is a Running Chart we’ve developed showing a nine year look back at our Desert Real Estate Market. We’ve had our difficulties, like every real estate market in the country, but the trend shows an ever advancing trend forward in sales and prices.

If you would like more information about your community, just give us a ring today or send us an email; we’re happy to help.

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