The Coachella Valley real estate market in December 2023 showcased a blend of stability and growth. With a consistent sales volume, a balanced inventory, appreciating property values, and a stable days on market, the region remains an inviting and reassuring landscape for real estate activities. As we move forward, this market is poised to offer diverse opportunities for buyers, sellers, and investors alike.
Sales Trends
Number of Homes Sold
In December 2023, the Coachella Valley witnessed the sale of 429 properties, mirroring the previous month's sales volume and marking a 6.45% increase from December 2022. This steady sales pattern indicates a resilient market reflecting a balanced demand compared to previous years.
Inventory of Homes for Sale
The number of homes available for sale in December 2023 stood at 2,176, which is a decrease of 10.23% from the previous month and marginally lower by 1.40% compared to December 2022. This inventory level suggests a stable market, neither heavily favoring buyers nor sellers.
Average Sale Price:
A key highlight is the average sale price. In December 2023, the average sale price was $750,343, a slight decrease of 9.60% from the previous month but still 5.72% higher than the $709,770 average of December 2022. Similarly, the median sales price was $579,000, down 4.30% from the previous month but up 5.46% from December 2022. These figures underscore the growing value of real estate in the region, making it an attractive market for potential investors and homeowners.
Average Days on Market (DOM):
The average DOM in December 2023 was 63 days. This represents an increase of 6.78% from the previous month and a 10.53% rise from December 2022. While this increase in DOM indicates a slight shift towards a buyer's market, the market remains dynamic and robust.
What It Means For Buyers:
The Coachella Valley real estate market in December 2023 presents a favorable buyer scenario. With the average days on the market (DOM) showing an upward trend, buyers have a slightly increased negotiating leverage and a wider selection of properties. Although prices are appreciating, the stable sales price to list price ratio indicates that properties are selling close to their asking prices, ensuring fair market value transactions. This environment, coupled with a steady inventory, offers buyers ample opportunity to find suitable properties without the pressures of an overly competitive market.
What It Means For Sellers:
For sellers, the market conditions remain promising. Despite a slight increase in the average days on market (DOM), the appreciation in both median and average sale prices from the previous year signifies continued interest and value growth in the region's property market. The stable sales price to list price ratio close to 100% indicates that properties are selling near their asking prices, which is a positive sign for sellers aiming to achieve fair market valuations for their homes.
City Standouts! What's Up and Who's Down?
You can get a better view of the trends in our market when you look at the numbers for each major city in the area.
Sales volume decreased in most cities, with notable exceptions being Desert Hot Springs (+14%), Rancho Mirage (+14%), La Quinta (+45%), and Indio (+25%). The average sold price generally increased across the region, with Cathedral City registering a significant 23% rise. However, Coachella saw a 5% decrease, while Desert Hot Springs, Rancho Mirage, and Indio's average prices remained unchanged. The number of days homes spent on the market increased overall, except in Cathedral City (-26%), Palm Desert (-5%), Bermuda Dunes (-11%), and La Quinta (-1%).
City Watch - Palm Desert
Interest rates. Interest rates continue to challenge our market as the average 30-year fixed-rate mortgage currently sits at 6.93%, while today’s 15-year fixed mortgage rate is 6.32%, and the jumbo 30-year fixed rate is 6.96%. Rates are typically two points higher on second home and investment home purchases.
If you're considering putting your home on the market, let us help you get it SOLD! Now, more than ever, marketing matters! Our world-class marketing plan, with online ads, paid YouTube ads, and social media exposure, is critical in this shifting market. Call now for a free seller consultation, and let us help you decide if now is the right time to sell your home.
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