Season is upon us in Coachella Valley. At the end of September, the weather switch was flipped, and October started with cooler temperatures. It is a treat to enjoy outdoor living again and to open windows at night. Snowbirds are drifting back into the desert as there’s an influx of out of state license plates. This is the time of year when most home sales happen. What is the Coachella Valley housing market outlook?
On average, the supply of homes throughout the valley is lower than a year ago. As a matter of fact, on October 1 there was only a 3.3 months’ supply of homes, which is an indication that it is a seller’s market. Low inventory has caused the median price in Coachella Valley to increase about 8% from one year ago. Another indicator of a healthy market is that the days a house is on the market is 66, compared to 71 days last year.
Please keep in mind that these are averages across 9 cities in Coachella Valley, so every community or area can be a little different. Our market is healthy, and in some communities, homes are going into escrow within 1 or 2 weeks of coming on the market, especially for the lower priced homes. High end homes tend to stay on the market a little longer but are beginning to move.
Another trend is that mortgage interest rates have risen. When mortgage interest rates increase, it causes a borrower’s buying power to decrease. Put in simple terms, a buyer has to purchase a lower priced home because higher interest rates cause the monthly mortgage payment to increase. Currently, mortgage interest rates are over 5%, which is historically low, but the highest millennials have ever seen!
Please contact me if you would like specific information on the Coachella Valley housing market outlook. When you visit the desert this time of year, it is very hard to leave paradise! If you are considering a second home or investment property, check my prior blog post.