Coachella Valley Real Estate Market Update

    Coachella Valley Real Estate Market Update

    3 Reasons to Expect a Hot Real Estate Market in 2020

    See Coachella Valley Market Trend Graphs

    The Coachella Valley Real Estate Market has been strong in 2019 and we expect this trend to continue into 2020. Despite the looming election in 2020 we feel that there is strong evidence that this will have a marginal effect on real estate trends in the Coachella Valley market.

    Here we go, the start of another election year. Every four years there can tend to be a sense of uneasiness leading up to the presidential election. Rightfully so as the policy gaps between the two major parties seems to be at their greatest in recent memory. By now, the country has a pretty good understanding of what it can expect from our president, while the candidates that hope to unseat him are running with far different ideas of how the country should be lead. Regardless of your party affiliation, there is plenty of opportunity to allow election anxiety to creep in.

    Couple the election year with the many other important topics that will likely affect us this coming year (from a China trade deal, and Brexit, to our foreign policy with North Korea and Iran), and it’s understandable how the uncertainty could potentially create some tension and doubt about making any major decisions in the near future.
    How will the upcoming presidential election affect the real estate market? Opinions differ among real estate professionals, but we feel very comfortable that 2020 will be another fantastic year for residential real estate sales in the Coachella Valley. Here are the three reasons why:

    1. The Economy is Very Strong: Bloomberg Economics is forecasting that the U.S. economy will grow 2% in 2020 as the record-length expansion turns 11 years old in June. Real incomes are rising, and unemployment is at a 50-year low, as we experience the longest period of continuous economic growth since 1854.  The stock market finished 2019 at all time highs (over 32,000) with experts expecting it to go to 40,000 in the next 36 – 60 months.  The US economy is showing no signs of slowing down in the next 12 months.
    2. Interest Rates: Almost Hitting 2012 Lows: Interest rates decreased to well under 4% in the 4th quarter of 2019, almost reaching 2012 levels, with no indications of rate increases in the near future. 
    3. Conforming Loan Limit Increase: The Federal Housing Finance Agency (FHA) announced in November that it is raising the conforming loan limits for Fannie Mae and Freddie Mac to more than $510,000 in most of the U.S., up from 2019’s level to $484,350.

    The extra money in buyers accounts, teamed with interest rates near record lows and a conforming loan limit increase creates a perfect storm for buyers and sellers.  Buyers should feel more comfortable to make a purchase and are able to afford homes at a higher price point, while sellers should be looking for inventory to creep down and home prices to inch up as more buyers enter the market.  The stage is set for a very active year in residential real estate in the Coachella Valley cities


    Coachella Valley Real Estate Market Graphs and Stats:

    The statistics and graphs below outline the Coachella Valley Market performance over the past 15 plus years.

    The graph below shows the healthy growth in median sale price and a steady number of homes sold each year since 2011.

    Since 2006 the Coachella Valley has seen steady gains in median sale price. The graph below shows this steady growth.

    Coachella Valley Median Sale Price Change over the past 15 years

     

    The Jelmberg Team finished 2019 with $74 million in sales, leading the entire Coachella Valley in closed units (194).  This is a record for our team in both volume and transactions.  We expect 2020 to be an outstanding year for the community and our team.

    The Jelmberg Real Estate Team are Your Local Experts!

    The Jelmberg Team has complied this data for the residents and prospective buyers or renters in the Coachella Valley. If you would like assistance in determining the market value or a listing price for your home please contact a Jelmberg Team real estate agent – here. If you are looking to purchase a Coachella Valley home for sale our expert agents have the local knowledge needed to find you the perfect home to fit any lifestyle or need.