The Coachella Valley real estate market in December 2023 saw some significant changes compared to the previous year. The number of homes for sale increased by 203.6% from 617 in December 2021 to 1873 in December 2022. This increase in inventory is a positive indication of a market starting it’s return to “normal".
However, the number of homes sold in December 2022 decreased by 55% to 419, compared to 932 in December 2021, which is a cause for concern. This decrease in sales may be due to the higher mortgage interest rates, economic uncertainty, and the recent increase in selling prices.
Despite increasing inventory, selling prices are holding steady. The average sold price in December 2022 was $717,000, a small 1% decrease from December 2021's average of $724,000. This indicates that there is still strong buyer demand for good properties, and the best homes are still selling at or above their asking prices.
The average days on the market in December 2022 was 49 days, which is a 40% increase compared to 35 days in December 2021. This indicates that homes are taking longer to sell in the current market. This is likely due to buyers being more cautious and taking more time to decide, hoping for falling mortgage interest rates later in the year.
When comparing December 2022 to the previous month, November 2022, the number of homes for sale decreased by 7.3% from 2021 to 1873. However, the number of homes sold increased by 7.3%, from 410 to 419. The average home sold price decreased by 8.1%, from $780,000 in November 2022 to $717,000 in December 2022.
Overall, the Coachella Valley real estate market in December 2022 saw a significant increase in the number of homes for sale but a decrease in the number of homes sold. Additionally, the average days on the market increased while the average sold price remained relatively stable.
Let's look at the key market indicators that show how our market is performing compared to last year; Average Sold Price, Number of Days on the Market, and Number of Homes for Sale.
- Average Home Sale Prices. Last month's average home sale price in the Coachella Valley was $717,000, a slight decrease of (-1%) over the same month the previous year.
- Number of Days on Market. Days on the market have increased (+40%), and homes are selling on average 49 days.
- The Number of Homes for Sale. There were 1,873 homes for sale last month, a (+203.6%) increase over December the previous year.
Interest rates. The average 30-year fixed-rate mortgage currently sits at 6.1%, while today’s 15-year fixed mortgage rate is 5.125%, and the jumbo 30-year fixed rate is 5.785%. Interest rates have come down from their recent high of 6.5% and may drop further if inflation continues to ease.
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.
The Number of Homes Sold in December 2022 vs. December 2021 has once again decreased dramatically in all cities. This month the largest percentage drops were in Bermuda Dunes (-73.1%), Indio (-68.6%), and La Quinta (-64.3%). Coachella was the only city with a single-digit sales drop, down (-7.1%)
While sales were down, Average Selling Prices were up in about half of the city’s and down in the other half. The largest price increase was in Coachella (+44.1%) followed by Rancho Mirage (+6.6%). Desert Hot Springs had the largest percentage drop in average selling price (-14.7%) followed by Indian Wells, down -(14.3%).
The Number of Days on the Market increased for all cities in the Coachella Valley except for Coachella down (-38.9%), Indian Wells (-11.4%), and Bermuda Dunes (-5.1%)
City Watch - Indian Wells
Number of Homes for Sale = 58 (+52.6%)
Number of Homes Sold = 18 (-41.9%)
Average List Price = $2,168,000 (-21.0%)
Average Sale Price = $1,480,000 (-14.3 %)
Average Days on Market = 39 (-11.4%)
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, TV 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.
If you'd like a detailed market report for a specific city, email us and let us know which city reports you'd like to receive.
Call us at (760) 625-7229, or visit www.thehamiltonregroup.com for an easy-to-use home search and information on how we can help you with all your essential real estate needs.