2Q19 Market Update
As mentioned in Bennion Deville's* first quarter 2019 recap, there were signs of moderate price regression in the Coachella Valley real estate market. This trend manifested in the second quarter with the average price dipping ever so slightly; however, compared to last year, home prices are still up significantly. Overall, inventory is declining and the sales pace is quickening while the listing discount remains stable. This means that the minimal price dip may be a temporary blip since demand is still strong. Coupled with declining inventory, the steady demand and decreased supply indicate there could be upward pressure on home prices heading into third quarter. We will see over the coming months if these are indications of a change in market seasonality or a precursor to more major shifting within the market.
The number of homes changing hands in the second quarter of the year totaled 3,011, a 4.8% decrease year-over-year but a 34.7% jump compared to first quarter 2019. These sales accounted for over $1.5 billion in sales volume, a 1.5% increase over the same period last year and a 33.7% climb over last quarter. The average closed sale price came in at $511,900 which accounts for a 6.6% year-over-year increase but a slight decrease of 0.7% compared to last quarter. Likewise, the price per square foot was up by 5.3% compared to last year but down by 0.9% when compared to first quarter 2019, finishing at $243.80. Inventory was down compared against both markers, finishing with 3,082 homes for sale, a slight dip of 0.2% year-over-year and a 16.8% decrease from last quarter. The average days on market clocked in at 86 days, a 3.4% decline (faster pace) than last year but a 3.6% increase over last quarter (slower pace). The listing discount (sold price versus list price) finished at 96.35%, a 0.3% drop from last year but a 0.1% increase over last quarter. Overall, there is a 1-month supply of homes on the market, the same as it was last year and down by 41.2% compared to last quarter.
*Content provided by Bennion Deville Homes Marketing Department