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Greater Palm Springs 

Forth Quarter 2020 Coachella Valley
Real Estate Market Recap 



The desert real estate market wrapped up the year in grand fashion, with improvements in every major metric that we track compared at both a quarter-over-quarter and year-over-year glance. Stoked by historically low inventory levels and surging demand sparked by mass exodus from larger cities and major metro areas, the Coachella Valley market is riding a housing wave into 2021 unlike any we have ever seen. The number of sales continued to increase during the holiday season, bucking traditional patterns that show the fourth quarter as a quieter time before activity picks back up at the stroke of midnight on January 1 each year. In addition to increases in sales activity, homes prices are soaring, with clamped inventory levels creating high competition for homes and pushing prices upward. This price bump is poised to continue for the foreseeable future as inventory remains low and the sales pace picks up, especially now that we are through the holidays. Sellers are also getting closer to asking price than previous quarters, indicating that buyers are having to bid closer to what the seller is asking for a property in order to land it. As we head into what is traditionally the busiest time of the desert season each year, we will continue to monitor how inventory levels are affecting home prices. If you are looking to cash in on any equity you have built up in your desert property, now is the time to seriously consider selling.

In the last quarter of the year 3,200 homes successfully sold, a 42.9% leap over the same period last year and 0.5% increase from the prior quarter. Those sales accounted for over $1.965 billion in sales volume, a massive 79.1% increase year-over-year and a 7.7% bump quarter-over-quarter. The average price for a home in the Coachella Valley finished the quarter at $614,300, a 25.4% jump from last year and a 7.1% boost from third quarter 2020. Likewise, the average price per square foot finished at $282.80, a 14.9% increase over the same period last year and a 5.6% jump from last quarter. The sales pace, noted as average days on market, clocked in at just under 64 days to sell a property, a 27.5% drop (faster) than the same quarter last year and a 21.5% decline (faster) from last quarter. The listing discount, noted as sold price versus list price, finished at 97.9%, or a 2.1% discount, a 1% increase (closer to asking price) from the same period last year and a 0.5% bump from last quarter. The year ended with 1,539 homes for sale, a 50% drop from the same period last year and a 22.7% decline from Q3. Overall there is a scant 1.4 months of inventory available, a 65.9% plummet from last year’s figure and a 26.3% drop from last quarter. A balanced market is considered at 6 months of inventory, indicating how razor-thin the desert housing inventory is and favoring sellers as we head into 2021.


Single Family Homes - Coachella Valley


 

1539

Active

974

Under Contract

643

Pending

3,200

Sold

(since Oct 01,2020)


Homes Sold

99%

List-to-Sale Price


$614,300

Average Sales Price

1.4

Months of Supply

64

Average Days on Market

$270.83

Average Price per Square Foot

Single Family Homes - Rancho Mirage


 

162

Active

125

Under Contract

48

Pending

358

Sold

(since Oct 01,2020)


Homes Sold

97%

List-to-Sale Price


$752,026

Average Sales Price

-1

Months of Supply

72

Average Days on Market

$268.98

Average Price per Square Foot

2019 vs 2020

Comparing December 2019 to December 2020 shows just how hot the market finished the year.

$1.15B

Jan - July 2020

$2.2B

Year-End-Sales 2019

$2.6B

Year-End-Sales 2020

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