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What Drives the Valley Housing Market

Home buyers in the Desert


Who’s buying valley real estate & what’s driving the local  market…aside from eight months with an average temp of 81 degrees?  

85% of our Buyers come from outside the Coachella Valley.  In 2013 valley home sales broke down this way; 67% of our buyers came from other California cities, named our “Feeder Market or Drive Market”. 10.5% were from Canada, 6% from Washington State and 3% of our buyers came from Oregon with the balance coming from a mix of sources. 

The Boomer Trail The wave of retiring Baby Boomers entered the retirement zone in 2007; their retirement plans were interrupted by the housing crash & financial crisis.  The Boomer’s decision to buy in the desert has historically been driven by age and net worth.  As household net worth has increased, so too has the Boomer’s plans for retirement. Home equity has strengthened in our feeder markets which puts the Boomers back on track to buy a retirement home in the desert.

Affordability Compared to other regions, the valley affordability index is among the most affordable in California.  At the peak of our market in 2006 the index was 16, which meant, only 16% of the households could afford a median priced home.   Today, the affordability index is at 51.  Investor activity played a significant role in the increase in home sales & prices. Now that  distressed properties are no longer a significant factor, more traditional equity sales will make up the real estate market going forward and should create a more stable environment for growth and price appreciation.

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