September 2022 Coachella Valley Housing Market Report Riverside County, California

The median price of a detached home in the Coachella Valley has declined over the last two months. It’s currently at $670,000, which is up 15% year over year. Most of this decline is seasonal but it also represents the general corrective turn that is occurring in home prices. The median price for attached homes in September was at $465,000, which is down slightly from the previous month but up 24% year over year. Gains now range from 34.1% in Indian Wells to 12.2% in the Bermuda Dunes. In the attached home market, two cities continue to have gains of over 40% - Desert Hot Springs and Indio.
 

The three-month average of sales in September was 581 units a month, which is 32% below last year. In the three years before the pandemic, September sales averaged 784 units, so current sales are objectively running about 25% below normal. Every city except Coachella had lower sales in September compared to a year ago. Sales in the city of Coachella are 42% higher. The largest percentage declines were in the cities of Rancho Mirage, La Quinta and Cathedral City, where sales are lower by 43%, 42%, and 42% respectively.
 

On October 1st, Valley inventory stood at 1,807 units, which is 214 units higher than last month and 924 more than last year. This monthly increase is opposite to almost every other California region, where inventory generally contracted last month. Some of this increase is seasonal and if the seasonal pattern continues, as we expect, inventory might possibly reach 2,500 units by February. On October 1st, the Valley’s “months of sales” ratio was 2.2 months, which like inventory is higher than last month. The ratio remains considerably below 3.0 to 3.5 months, which is normal for late summer. DIM: At the end of September, the median number of “days in the market” throughout the Valley was 32 days, which is now eight days more than last year. As we’ve said, we think we’ve seen the lows in this metric and believe it will rapidly increase back to 50 or 60 days, which is historically “normal” for the region. The city of Indian Wells has the lowest median selling time for detached homes at 24 days, followed by Rancho Mirage at 27 days. In the attached market, Desert Hot Springs has the shortest selling time at 23 days, followed by Cathedral City at 25 days.
 

At the end of September, 27.7% of sales occurred above the list price compared to 50.2% a year ago. As we’ve stated, we fully expect the ratio will be back to historic norms of around 10% near the end of the year. Only four cities have selling premiums for detached homes, with the cities of Coachella and Desert Hot Springs having the highest premiums at .6% and .3% respectively. No city currently has a selling premium for an attached home.

 

The median price of a detached home in the Coachella Valley has declined over the last two months. It’s currently at $670,000, which is up 15% year over year. Most of this decline is seasonal but some also represent the general corrective turn that is occurring in home prices. We’ll have to continue to follow it carefully to see how it progresses through the end of the year. It is important during times like this to follow the data and not the many alarming comments people make.  

 

This chart graphs the percentage of Valley homes over the last three months that sold above list price and shows the percentage Is rapidly declining. At the end of September, 27.7% of sales occurred above the list price compared to 50.2% a year ago. As we’ve stated, we fully expect the ratio will be back to historic norms of around 10% near the end of the year.  

 

San Diego was the most popular destination among Coachella homebuyers followed by Las Vegas and Phoenix.

 

 

If you have any questions about the real estate market in La Quinta or about real estate in the area, please feel free to contact the Read Group anytime at 760-835-8805 or send us an email at info via our contact link on this site. We’re always just a phone call away and look forward to helping you find your dream home in La Quinta.

 

If you’re searching for a home or a vacation home on and around the resort property, you can find it here. Whether you stay near the resort or at PGA WEST, you’ll have access to all the resort’s spectacular amenities. You can find private residences that are incomparable, featuring everything from one-bedroom condos to exquisite five-bedroom estate homes.

 

Experience La Quinta and live the life you’ve dreamed of. If you're looking to buy or sell a home in La Quinta, give us a call. The Read Group sells Lifestyle Homes in La Quinta, California.