It seems unlikely, but the coronavirus has created ideal conditions for a dramatic spike in home sales in the Coachella Valley. With so many people working from home — and realizing home can be anywhere — and also avoiding air travel to minimize their risk of exposure, the desert communities are looking more attractive than ever.
In the midst of a national pandemic, we appear to be in one of the the strongest housing markets in over 13 years.
Administrators and business professionals are transitioning to work from home permanently, more and more corporations are allowing to work from home and even suggesting it. Many of these people are leaving big urban markets like San Fransico, Los Angeles, San Diego and moving to Coachella Valley.
Source: Palm Springs Life
Apartment dwellers want more space. Schools are extending distance learning. Workplaces are lengthening WFH timelines. All this means it’s no surprise that another popular getaway destination for the Bay Area is so hot, it can’t keep up with the demand for real estate.
The Coachella Valley, which includes Palm Springs, is having a record-breaking year that shows no sign of stopping. The median detached home prices for Palm Desert and Palm Springs have had year-over-year gains of 11.5% and 11.2% respectively, according to the Palm Springs Regional Association of Realtors. Since summer is usually considered the slow season for the hot, arid desert communities, real estate agents are predicting these gains to continue through the fall.
The coronavirus pandemic and associated economic tumult haven't stopped people from buying homes in the Coachella Valley, with single-family home prices rising compared to this time last year as more people relocate to the desert.
Real estate experts say some buyers are moving here from larger cities like Los Angeles as they transition to working from home and are seeking a less dense, more affordable place to live.
Source: Desert Sun
The U.S. real estate market is beginning to show signs of a “great reshuffling,” as people relocate to homes with more privacy and space to ease working from home.
“I believe we are at the dawn of a great reshuffling,” Barton said. “I’m sure I don’t need to spell it out for you because we are all living it, spending an average of nine hours more per day at home. Zoom meetings are changing the way families think about space and privacy. Home offices are in high demand. Backyards are more desirable than parks and gyms. Work-from-home policies are eliminating the commute for many. There’s an endless list of considerations.”
Many city dwellers are looking to move out of the busy metropolitan areas, and because of that, Coachella Valley real estate is a hot commodity this summer.
The most recent desert housing report shows the number of available home falling each year, settling to an extreme low far the summer 2020. With inventory numbers that low, and demand this high, experts say home that priced right are selling like hotcakes. The flood into our desert is apparent; other counties aren't seeing nearly the same buying frenzy.
Online real estate company Zillow released new statistics shining a stark light on the issue this week. Their "2020 Urban-Suburban Market Report" reveals that inventory has risen a whopping 96% year-on-year, as empty homes in the city flood the market like nowhere else in America.
The reason for this change is likely a combination of a few unprecedented factors that have collided this summer, resulting in a historic shift in the city.
The astronomical cost of owning a home in the San Francisco city limits — which has been sky high for over a decade now, since the second tech boom — had to break at some point, and the coronavirus seems to be the straw that broke the camel's back. The pandemic soon led to tech giants like Google, Facebook and Twitter rethinking what work looks like, as many have allowed employees to work remotely for the foreseeable future, and maybe forever.
This, combined with the fact that most entertainment venues, eateries and bars in the city have closed, has given many residents — particularly tech employees and transplants — little reason to stay, when more spacious, literally greener pastures beckon in (relatively) less costly regions in California such as Lake Tahoe or Palm Springs.