Here’s what you should know about our market heading into Q4.
Today I am going to share the latest market statistics for the valley and a couple of thoughts regarding what we might expect to see the market do in the fourth quarter of 2020.
The Coachella Valley real estate market is steaming forward at a record pace, making up for lost time in March and April, and there seems to be nothing that can stop it. However, there are a few factors that we need to keep an eye on that could cause the market to shift.
Coachella Valley median home prices (see graph 1) are up 21% year over year (YoY), mostly because of appreciation, but the size of homes sold has also played a role in the increase as the size of homes sold is up 5% from August of last year. The number of homes sold over $500K was up 53% YoY and home sales over $1M are up a whopping 80% YoY in the month of August.
Inventory continues to set record all time lows and is down 5% from last month and 26% from last year (see graph 2), while the number of sales continues to rise. Average daily sales in the valley increased 30% YoY to 23.7% per day.
The continued decrease in inventory and increase in number of sales has pushed the months of sales in all cities, except Indian Wells, and all price points below $1MM, at or below 4 months. With the months of sales for the valley as a whole at an astonishing 2.5 months (see graph 3).
“We need to keep an eye on
the lingering effects of COVID.”
What does this market mean for homeowners and home buyers?
We are in such a strong sellers market that it’s hard to see it making any kind of significant movement the other direction.
That said, we need to keep our eyes on the lingering effects COVID has had on renters and homeowners making their payments. Nearly a third of renters weren’t able to pay their rent in August, while there was also an 8% jump in mortgage delinquencies (9 year high) during the month. We could also see the uncertainty surrounding the election affecting buyers’ desire to enter the market in the fourth quarter of this year. Either of these factors could cause an increase in inventory and cause the market to shift.
If you have been thinking about selling, there is no time like the present. We have helped 15 sellers in the last month sell their homes. Reach out to the agent on our team you have been working with to answer any questions and show you how we will sell your home quickly and for top dollar.