Coachella Valley Real Estate Market Update: February 2024

Welcome to our deep dive into the Coachella Valley’s real estate dynamics, this month we look back at February 2024 where we unpack the latest trends and numbers to give you the edge in our ever-evolving housing landscape.

Palm Springs:

• Single Family Homes: The median sales price adjusted slightly to $1,200,000, a subtle decrease from the previous month, while maintaining a robust sale to list price ratio of 95.82%.
• Homes Sold: The number of homes sold increased to 38, indicating a growing interest in the single-family home market.
• Price Per Sqft.: At $623, the price per square foot edged upward, reflecting the continued desirability of Palm Springs real estate.
• New Listings: With 100 new listings, the market displayed a healthy level of activity, offering a range of options for buyers.

Cathedral City:

• Single Family Homes: The median sales price saw a slight reduction to $525,000, with the sales to list price ratio at a high 98.28%, suggesting close to full asking price offers.
• Condos: Median sales price for condos rose to $320,000, with a strong sale to list price ratio of 97.6%, and a notable increase to 11 homes sold.
• Market Activity: Both segments showed an increase in absorption rate, indicating a quickening pace in the market.

Rancho Mirage:

• Single Family Homes: Median sales price climbed to $1,250,000 with a relatively high sales to list price ratio of 96.11%, affirming Rancho Mirage’s appeal in the higher-end market.
• Condos: A significant rise in median sales price to $580,000 and an increase to 24 homes sold reflect a robust market for condos.

Palm Desert:

• Single Family Homes: A median sales price of $607,450 and 98.23% sales to list price ratio depict a competitive market, with sales volume up to 62 homes.
• Condos: The median sales price surged to $568,750, a clear indicator of the strong demand for condos in the area.

Indian Wells:

• Single Family Homes: The market witnessed a considerable increase in median sales price to $1,870,000, complemented by a 98.46% sales to list price ratio, suggesting that properties are almost achieving their asking prices.

• Condos: The condo segment also saw growth, with the median sales price reaching $750,000 and a substantial sale to list price ratio of 97.44%.

La Quinta:

• Single Family Homes: There was a slight increase in the median sales price to $850,000, with sales volume also growing to 81 homes sold, pointing to a healthy market.
• Condos: The median sales price for condos experienced a significant rise to $860,000, indicating a premium on condo living in La Quinta.

Indio:

• Single Family Homes: Median sales prices in Indio remained stable at $530,000, while the number of homes sold decreased to 50, signaling a slight market cooling.
• Condos: The median sales price for condos saw a notable decrease to $274,500, with sales volume also seeing a reduction, potentially offering opportunities for buyers.

Exploring the Valley-Wide Real Estate Trends in Coachella Valley for February 2024

As the Coachella Valley real estate market progresses into 2024, February’s data delineates a landscape of both growth and stabilization across the various cities. From the luxury estates of Indian Wells to the vibrant neighborhoods of Palm Springs, each area is charting its course in a market that remains dynamic and full of potential. View each of the desert cities here.

Moderate Movements in Median Sales Prices:

Across the valley, February 2024 median sales prices for single-family homes are showing moderate movement. With a slight decrease to an average of $976,064, the market seems to be finding a balance after the high-octane growth of previous months. Despite these adjustments, the overall sales to list price ratio stands strong at 97.39%, indicating that properties are still fetching prices very close to what sellers are asking.

Condo Market – A Mixed Bag:

Condos, on the other hand, are experiencing a mixed bag of trends. The average median sales price saw a slight uptick to $542,250, and the sales to list price ratio remained steady at 97.42%. This suggests that condos continue to be a sought-after option for those looking for a more affordable entry into the housing market or a versatile living space. This is briefly mentioned in an article regarding Airbnb’s effect on housing in Palm Springs

Inventory and Absorption Rates February 2024:

Inventory levels have seen a subtle decrease, suggesting that the market is not becoming over-saturated and that homes are being absorbed at a healthy rate. The average Months’ Supply of Inventory (MSI) for single-family homes now sits at a balanced 4 months, pointing towards an equilibrium between supply and demand.

Days on Market and Buyer Engagement:

The average days on market (DOM) for homes show a slight increase to 73 days, providing buyers with a reasonable amount of time to make decisions without the pressure of a rapidly moving market. This slight extension in DOM could also indicate that buyers are taking the time to negotiate, reflecting a market that is becoming increasingly buyer friendly.

Surge in New Listings:

A notable trend this month is the significant increase in new listings, with an average of 39 new listings for condos, reflecting a 34% month-over-month growth. This surge is a positive sign for buyers who are looking for variety and choice in their home search. For sellers, it represents the continued interest in the Coachella Valley as a desirable location to live and invest in.

February 2024 paints a picture of a Coachella Valley real estate market that is steadily moving forward. With balanced inventory levels, stable pricing, and an increase in new listings, the market is well-positioned to accommodate the needs and desires of a diverse range of buyers and sellers. Those looking to engage with the market have good reason to be optimistic, whether they’re seeking to buy their first home, upgrade to a larger space, or invest in a vacation property.

As the year unfolds, keeping a close eye on these trends will be key to navigating the market successfully. Stay tuned for monthly updates that will provide deeper insights and guidance for your real estate journey in the Coachella Valley.