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Summer Real Estate Trends in La Quinta | 2018

Summer Real Estate Trends

SUMMER REAL ESTATE TRENDS IN LA QUINTA GOLF COURSE COMMUNITIES

The story of record-breaking summer temperatures in the Coachella Valley seems to be on repeat the last couple of years.  This summer was no exception as Palm Springs broke a temperature record in mid-July by three degrees with a high of 119 degrees.  That same week in Thermal, temperatures reached 122 degrees, breaking another 2014 record by three degrees. 

The soaring temperatures didn’t stop home buyers from lathering up with sunscreen, cranking up the A/C and making their way into La Quinta golf communities to search for property. From May 1st to September 15th, 138 homes sold and the median sale price rose from the same time period last year by approximately $59,000 to $900,000. The statistic you can’t ignore is the absorption rate of 6.13, indicating the communities could be transitioning to a sellers market.  It will be really interesting to see how the market reacts in the next couple of months.  We will be watching the absorption rate closely as a continued downward trend will drastically change the strategies we implement for our sellers and buyers.  With inventory in the communities on the low side (52 active listings as of 9/17/18), and the current momentum of the stock market, the overall sentiment from our team is real estate in La Quinta golf communities is going to sizzle this fall!

ABSORPTION RATE IN LA QUINTA

(5/1/2018 – 9/15/2018)
6.13Months
AN ABSORPTION RATE UNDER 6 INDICATES A SELLERS MARKET

# OF PENDING AND CONTINGENT SALES

(5/1/2018 – 9/15/2018)
52

# OF ACTIVE UNITS

(5/1/2018 – 9/15/2018)
188


Median Sqft

Median List Price

Median Sale Price

Median $/Sqft

Median SP / LP

Median DIM

# of Units Sold

5/1/18 – 9/15/18

3,353

$927,000

$900,000

$268.42

97.09%

114

138

5/1/17 – 9/15/17

3,348

$882,500

$841,250

$251.27

95.33%

118

136

2018

1st Quarter

3,551

$1,062,000

$974,500

$274.43

91.76%

92

102

2nd Quarter

3,365

$949,000

$913,000

$271.32

96.21%

106

125

2017

1st Quarter

3,300

$875,000

$842,000

$255.15

96.23%

97

116

2nd Quarter

3,370

$1,000,000

$965,000

$286.35

96.50%

118

115

3rd Quarter

3,069

$780,000

$750,000

$244.38

96.15%

126

75

4th Quarter

3,029

$887,000

$857,500

$283.10

96.67%

96

56

WHAT IS ABSORPTION RATE?

The rate at which available homes are sold in a specific real estate market during a given time period. It is calculated by dividing the average number of sales per month by the total number of available homes.


AS PER THE NATIONAL ASSOCIATION OF REALTORS

  • First, determine the number of homes closed in your market over a specific period — say, 12 months.
  • Next, divide the number of homes by the number of months in the period — in this case, 12. This calculation gives a per month absorption rate.
  • Last, divide the rate into the number of current listings. This yields the months’ supply of homes.

SOURCE: Desert Area MLS

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Real Estate Agents

At Jelmberg Real Estate our team of highly trained real estate agents work to create outstanding results for our clients from all over the world and the Coachella Valley. As local real estate experts our knowledge of housing market, communities and the cities that comprise the Coachella Valley are second to none. Weather you are selling your home or buying a home in the Palm Springs area our team is dedicated to making your next real estate transaction an outstanding experience. Come visit us and make your real estate dreams a reality today!

One Response to “Summer Real Estate Trends in La Quinta | 2018”

  • […] The soaring temperatures didn’t stop home buyers from lathering up with sunscreen, cranking up the A/C and making their way into La Quinta golf communities to search for property. From May 1st to September 15th, 138 homes sold and the median sale price rose from the same time period last year by approximately $59,000 to $900,000. The statistic you can’t ignore is the absorption rate of 6.13, indicating the communities could be transitioning to a sellers market.  It will be really interesting to see… Read More on the Jelmberg Team Website >  […]


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