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March 2024 Coachella Valley Real Estate Trends: A Vibrant Landscape Emerging
As spring blossoms in Coachella Valley and we wrap up March 2024, the local real estate market reflects the season’s vibrancy with its own dynamic changes. March has seen a range of activity that continues to shape the market’s direction, responding to an evolving economic climate, the nuanced dance between buyer and seller interests, as well as outside market factors such interest rates, and the announcement of the proposed NAR settlement.
Across The Coachella Valley
Sale Prices March 2024
Single-Family Homes: Adapting to a Seasonal Shift
The single-family home market across Coachella Valley is showing an adaptation to the seasonal shift. Median sales prices have found a sweet spot, with Palm Springs seeing a nuanced adjustment to $1,140,000 (down 5% from Feb) in March. This slight recalibration indicates a market that’s adjusting organically to both macroeconomic factors and local demand. The sales-to-list price ratio remains strong, hovering near the asking price with a valley wide average of 99.9%, demonstrating sustained confidence in property values. The Months of Supply Inventory (MSI) for single-family homes has attained a balance at around 4 months, signifying a market that’s neither too tight nor overly saturated. It’s a sign of opportunity for both buyers, who have a healthy selection to choose from, and sellers, who retain leverage in pricing.
Condos: The Blossoming Sector
Condominiums in the valley are looking at the spring blooms in the mountains and are acting in-kind, with the median sales price in Palm Springs climbing to $459,000 up 5% from last month. This sector’s growth is underpinned by a 27% jump in homes sold in Palm Springs, mirroring the broader appeal of more affordable, flexible living spaces. Even as the average sales price per square foot increases, suggesting buyers’ willingness to invest in quality, the market is accommodating, not pushing buyers or sellers to rush decisions.
Market Momentum: Gauging Pace and Preference
The overall market momentum is palpable, with properties spending an average of 65 days on the market. It’s an indication of a market that’s active yet not hasty, where transactions are measured and deliberate. This tempered pace allows for negotiations that can satisfy both parties without the frantic energy of a seller’s market. Properties that are priced to sell, with amenities buyers desire can still see multiple offers and sub double digit days on market.
The Surge of New Beginnings
As is characteristic of the season, new beginnings in the form of listings have made their presence felt. With 935 new listings valley wide, the market is abuzz with options, enticing potential buyers with a variety of choices and signaling seller optimism about the market. It should be noted that valley wide inventory did dip down -12.69% to 2,064 available units from February.
Reflecting on Pricing Strategies
Pricing strategies are adapting with small changes in median and average sales prices throughout the valley. These gentle shifts show a market that’s flexible and quick to respond to the economy and what buyers and sellers want but is still strong. On average prices are still up year over year, with small decreases seen month over month. Rancho Mirage holds the largest swing with a 14% drop from last month. No evidence of the proposed NAR settlement was seen in March’s numbers.
City By City March 2024
Palm Springs:
Alongside the median sales price, Palm Springs single-family homes witnessed an absorption rate indicating strong market demand. The average days on market, however, saw a noticeable decrease to 55 days, suggesting a quicker turnaround for sales. On the condo front, the number of units sold rose to 53, and the average price per square foot increased, underscoring a consistent appeal in this sector.
Cathedral City:
In Cathedral City, the new listings for single-family homes remain steady, showing seller optimism, while the average days on market decreased slightly, indicating an efficient market. Condos saw a decrease in the number of homes sold and an 11% increase in inventory, which may create opportunities for buyers looking for options without the competitive pressure.
Rancho Mirage:
Rancho Mirage’s single-family homes are not just holding their value but have also seen an increase in the number of homes sold to 44, reflecting a healthy buyer interest. For condos, the price per square foot held firm, demonstrating a consistent market value even with softened median prices.
Palm Desert:
Palm Desert’s market showed an increase in homes sold for single-family residences, indicating sustained or growing demand. Condo sales also saw an uptick in volume, with 70 units sold in March, suggesting an active market with competitive offerings.
Indian Wells:
The luxury market of Indian Wells saw single-family homes selling more quickly, with average DOM decreasing, a sign of continued demand for high-end properties. Condos in this area alsoexperienced an increase in absorption rate, pointing towards a faster-paced market compared to the previous month.
La Quinta:
La Quinta’s single-family home market remained vibrant with an increase in the average price per square foot, indicating rising property values. The condo market also showed increased activity with more new listings, providing a wider selection for prospective buyers.
Indio:
Indio’s single-family home market displayed resilience with a drop in average days on market, hinting at a faster-moving market. For condos, the sales to list price ratio reached almost 100%, revealing that properties are selling at or near the asking price, reflecting a balanced market dynamic.
Spring’s Promise in the Real Estate Market
The March 2024 Coachella Valley real estate market is full of promise, as indicated by the balance of the MSI and the steady pace of sales. The landscape is primed for both buyers seeking value and sellers looking to capitalize on a market that appreciates well-positioned properties.
In navigating this vibrant market, informed decisions are key. Stakeholders equipped with insights into the monthly ebb and flow will find themselves well-positioned to capitalize on the opportunities that spring brings.
As the season progresses, the Coachella Valley’s real estate market promises continued diversity in its trends, with some areas showing robust growth and others steadying. Whether you’re contemplating entering the market or considering listing your property, the current climate is opportune, with the increased new listings providing a spectrum of opportunities. Stay with us for the latest updates and thorough analysis, and let’s navigate the lively Coachella Valley real estate market together with confidence and clarity.
Exploring the Valley-Wide Real Estate Trends in Coachella Valley for February 2024
ing 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.
The fluid nature of the Coachella Valley market is becoming more pronounced, with properties spending a few more days on the market, pointing towards a tempered rush and thoughtful negotiations. This increase in DOM reflects a balanced market where neither party feels pressured, allowing for better-aligned sale terms.
regarding property pricing. The median sales price of $602,500, while down 4.36% from November’s $629,995, represented a significant year-over-year increase of 4.78% from December 2022’s $575,000. This figure is particularly notable as it’s the highest for any December in the past two years, indicating a long-term upward trend. On the other hand, the average sales price witnessed a decline of 8.29% month-over-month, settling at $793,432. However, compared to December 2022’s $744,797, this still marks a 6.53% increase, showcasing overall growth in the market value of properties.
Average Days on Market (DOM) Trends: The increase in the average days on market (DOM) to 65 days in December 2023, from November’s 59 days and December 2022’s 59 days, indicates a subtle shift. This upward trend in DOM suggests that properties are staying on the market longer before being sold, potentially signaling a move towards more favorable conditions for buyers, where they have more time to make decisions and possibly negotiate better terms.
inventory is on the rise, a home priced in line with current market expectations is likely to complete a sale within 90 days. However, it is essential to recognize the regional price reduction—averaging a 10% dip across the valley since last year—and the impact of persistently high-interest rates on buyers’ budgets. Therefore, setting a realistic price that reflects these conditions is fundamental to attracting serious offers and achieving a timely sale.
One of the primary distinctions between Indian lease land and fee simple land is the ownership of the underlying land itself. In fee simple land ownership, you have complete control over the land, allowing you to make decisions regarding its use and potential future development. On the other hand, Indian lease land ownership grants you the right to occupy and use the land for the duration of the lease, but the land itself remains under the ownership of the tribe. While fee simple land ownership offers maximum control and flexibility, Indian lease land presents its own set of advantages. Properties on leased land, including Indian lease land, often come with a lower purchase price compared to fee simple land properties. This affordability can make owning a home in desirable areas more accessible for potential buyers.
To truly appreciate the significance of leased land in Palm Springs, we look back at the history that shaped the Coachella Valley as we know it today. The story of Indian lease land dates to the late 1800s, during the era of westward expansion and the construction of the Pacific Railroad. In 1876, as the Pacific Railroad began laying tracks between Los Angeles, CA, and Yuma, AZ, the U.S. government took possession of all the land along the railroad route. The government then granted the Pacific Railroad “checkerboard parcels” of every other square mile of land, extending for 10 miles on either side of the railroad right-of-way. This unique land distribution pattern created a patchwork of ownership throughout the Coachella Valley. The non-Railroad land, including the beautiful landscapes of Palm Springs, was deeded to the Agua Caliente Band of Indians by the government. This grant limited their ownership rights to 52,000 acres of the Coachella Valley, with 6,700 acres specifically encompassing the Palm Springs area. The establishment of Indian lease land in the Coachella Valley was a result of this historic land distribution. The Agua Caliente Band of Indians, as the rightful owners of the land, decided to enter long-term leases with individuals and entities interested in developing properties within their designated areas. These leases have been thoughtfully negotiated and renewed over the years, ensuring a stable and secure environment for homeowners and businesses alike. The agreements are often made well in advance of their expiration dates, providing a sense of reassurance to those investing in leased land properties. Today, the Coachella Valley stands as a testament to the unique blend of cultural heritage, natural beauty, and vibrant community spirit. The presence of Indian lease land has become an integral part of the region’s identity, contributing to the diverse tapestry that makes Palm Springs and its surroundings so captivating.
When considering purchasing property on lease land, questions about transferability and obtaining mortgages often arise. Let’s delve into these topics to provide a comprehensive understanding of how transferability works and the availability of mortgages for properties on lease land.
Increase in perceived home value: When a home is staged, it can appear more valuable to buyers, which can translate into a higher sale price. According to the National Association of Realtors (NAR), the average staging investment is between 1% and 3% of the home’s asking price, which can generate a return on investment of 8% to 10%.
Declutter and depersonalize: The first step in staging your home is to declutter and depersonalize. Buyers need to be able to envision themselves living in the home, and that can be difficult if the home is cluttered with personal items.
Hiring a professional stager can be a game-changer when it comes to selling your home. A professional stager has the experience and expertise to create a cohesive and visually appealing space that will appeal to potential buyers. They can also provide a fresh perspective and objective eye to help identify any areas that need improvement. Personally, I use Kim with Sunshine Staging & Design for all my clients in the greater Palm Springs area. Her work is fantastic, and I highly recommend her services to anyone looking to sell their home.
The process of transferring a mortgage from a failed lender to a new one is relatively seamless for homeowners. This is because the mortgage industry has established procedures in place to handle such situations. When a lender goes out of business or sells their mortgage portfolio, the receiving financial institution is required to notify borrowers of the change. This notification typically includes information about the new mortgage servicer, where to send payments, and any changes in payment procedures.
For those looking to buy a home, it may be prudent to take extra precautions, such as including a funding contingency, also known as a loan contingency, in the purchase agreement. This provision ensures that if the lender goes out of business or cannot provide the loan for reasons beyond the buyer’s control, the buyer won’t lose their deposit money. As real estate lawyer Daniel Gershburg mentioned in the Wall Street Journal article, “Asking for a funding contingency will be seen as an increasingly reasonable request.” Sellers are generally open to accommodating such clauses, especially when the buyer has a strong financial profile.
In light of the recent bank troubles and the uncertain financial landscape, it is more important than ever for home buyers to conduct thorough research on mortgage lenders and obtain preapproval from multiple sources. Preapproval is a crucial step in the home buying process that can provide buyers with a competitive edge and a clear understanding of their purchasing power.
Researching mortgage lenders and obtaining preapproval from multiple sources is an essential step for home buyers in the current financial climate. By doing so, buyers can compare loan offers, protect themselves against lender-related risks, and strengthen their negotiating position. Engaging with mortgage professionals and conducting thorough research can help buyers navigate the Palm Springs real estate market with confidence and security. It is crucial for buyers to research multiple mortgage lenders and apply for preapproval from at least three, as suggested by Kate Wood, a home and mortgage specialist at NerdWallet, in the Wall Street Journal article. This allows buyers to compare loan estimates and select the best option. Working with local, financially stable lenders can provide additional peace of mind in uncertain times.
