Here’s how our Palm Desert real estate market has reacted to the pandemic.
How has COVID-19 affected Coachella Valley home prices?
Many of the conversations we are having right now, especially with buyers, are educating them on the current market. Many buyers think the drop in the stock market, unemployment and the effects COVID has had on businesses was going to create significant price drops, but this just isn’t the current state of our market in the desert. Let me tell you why.
California Desert Association of REALTORS (CDAR) recently published a report with some telling information as it relates to the effect COVID-19 has had on home prices.
As of May 1st:
As you might have expected, it looks like daily pending and closed homes decreased will have decreased by approx. 50% year of year (from 23/23 to 11/12), as a lot of buyers have been shaken by the uncertainty COVID brought about our health, the financial and housing markets.
When the governor announced his stay at home order, on March 19th, the daily number of new listings plummeted from approx. 30/day (almost exactly the same this time last year) to 18-20 a day on May 1st.
Number of canceled listings remained steady approx. 5/day (same as this time in 2019). Netting + 13/15 homes a day this year vs. 25 this time last year. 40-50% less. While the number of ready buyers shrunk significantly year over year, the number of homes being added to inventory daily is also down 40-50%. The year over year 20% decrease in inventory has propped home prices up.
We have to keep in mind, this transactional data tells a story of the market in the past. To get a feel for how the market moving forward, we look at indicators like; the number of showings our agents and our listings are having, along with the conversations that our agents are having with clients.
We need to keep a close eye on those daily inventory and pending/closed numbers. Any consistently large moves in a direction will be critical indicators pointing in the direction this market is going.
We’ll keep you updated. For more a for detailed account of the current real estate market in the Coachella Valley please reach out to agent you are currently working with.