Market Update May 2024

Coachella Valley Real Estate Market Overview May 2024

As we near the official start of summer, the desert real estate market continues to cool, though slowly.
The noticeable decline in sales and home prices that began a few months ago persisted into May. Nevertheless, these changes are modest.
Overall, the supporting statistics indicate a stable and steady market with healthy levels across various metrics. The average days on the market have stayed relatively consistent, as has the sale-to-list price ratio.

The most significant change, especially compared to last year, is in inventory levels, which have risen in the number of homes for sale and the months of inventory available. This means buyers have plenty of options to consider. For sellers, the market’s stability suggests properties are priced appropriately for the current conditions, rewarding those who price their homes realistically with activity and successful sales.

Single-Family Home Stats

The number of homes for sale dropped from 1,522 in April to 1,426 in May. However, compared to the previous year, there was nearly a 30% increase in the number of single-family homes available, indicating a more active market year-over-year. This surge provides additional options for buyers and demonstrates strong seller confidence.

Despite the monthly inventory figure declining since March, the broader trend shows the return of our seasonal market cycle, with slower activity during the hot summer months. For prospective sellers, this means there is less competition for buyers' attention, potentially making it an opportune time to list a property.

The number of homes sold in May slightly decreased from April to 400, suggesting buyers may be becoming more selective or pausing their searches for the summer. This figure is also down by nearly 9% year-over-year, but overall, home sales in 2024 have been steadier than in 2023, which is positive news.

The median sold price remained stable, with a minor monthly decrease to $717.5K and an annual decrease of 1%. The stability of the median price suggests a balanced market, providing fair opportunities for both buyers and sellers to achieve satisfactory deals. This balance is further supported by the 4.5 months of inventory, indicating that all parties can negotiate with neither having a distinct market advantage.

Condominium and Multi-Family Home Stats:

For Condos and Multi-family homes, the number of homes for sale decreased from 650 in April 2024 to 584 in May 2024. However, compared to last year, there was a nearly 30% increase in multi-family homes available. This marks the second consecutive month of significant inventory drops, indicating the market is easing out of its seasonal peak. Nonetheless, the annual inventory gains are a positive sign.
Additionally, the number of homes sold decreased slightly from 196 to 192 month-over-month, a steady figure but much lower than the 218 sold in May of last year.
We will monitor the easing activity and decreasing inventory over the summer as they are strong indicators of market seasonality.

The sale-to-list price ratio for Condos and Multi-family homes declined to 96.6%, indicating an average discount of 3.4% off the list price. This figure is down 1.4% from the previous month and 1.3% from last year. Decreasing activity, declining inventory, and dipping prices, along with an increase in days on the market, suggest the multi-family segment is experiencing a lull at the end of the traditional season.
Despite the monthly declines, the overall numbers remain strong, as shown by the 4.3 months of inventory available to meet demand. As with single-family homes, homebuyers looking for a deal may find one more easily this year compared to last year.
Additionally, sellers with homes on the market now face less competition, which could help them secure a buyer at a solid price.

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