COACHELLA VALLEY MEDIAN HOME PRICE PER SQUARE FOOT
The media Valley price per sq. ft. at the end of July, 2015 declined $3 to $176.65 but still remains higher than a year ago but just marginally so. However, on a city-by-city basis, we see considerable improvement in prices compared to a year ago.
Almost every city improved;
Palm Desert: From -1.2% to +2.1%
Palm Springs: From +4.1% to +5.8%
Indio: From +6.6% to +8.3%
La Quinta: From -7.2% to -1%
The biggest sign or improvement we see is in growing sales. Seasonal sales are 5% higher than 2014. Even though it’s occurring during the slow season, it is significant and we feel an indication of what lies ahead. The reason we say this is because it was expected; we felt that easier credit and the reemergence of earlier foreclosed homeowners would begin to increase sales and it’s finally starting. That is a starting DURING the slow season is immaterial.
We are further encouraged by the size in the decline in inventory as we go into autumn. This should set the stage for the start of next year, with rising sales and higher prices bringing out more inventory but with little, if any, downward price pressure.
3 MONTH AVERAGE HOME SALES
PALM SPRINGS The price strength of Palm Springs constantly amazes us as sales continue to grow while inventories remain at relatively low levels.
Avg. 3 Month Sales July 2014: 167
Avg. 3 Month Sales July 2015: 187
“MONTHS OF SALES” BY CITY
(city inventory divided by average twelve month sales)
When we calculate “months of sales” for each city, we feel that current ratios are acceptable in all cities, even the higher priced ones. It is encouraging that La Quinta went from 7.6 months on July 1 to 6.7 months on August 1, one month later.
Palm Springs remains the wonder city of the Valley with a months of sales just below four months.
Palm Springs:
Aug. 1, 2015: 3.9
Aug. 1, 2014: 3.6
Cathedral City:
Aug. 1, 2015: 4.4
Aug. 1, 2014: 3.9
Palm Desert:
Aug. 1, 2015: 5.6
Aug. 1, 2014: 4.9
Rancho Mirage:
Aug. 1, 2015: 7.3
Aug. 1, 2014: 6.1
Source: Palm Springs Association of Realtors: MLS.com