In 2021 there has been a flurry of change in national news and the macroeconomic front. Despite these changes, the housing market seems to have not missed a step in keeping pace with the unprecedented sales numbers to the end of 2020.
Locally, the median sale price ended 2020 at $520K in the valley, up 22% YoY (Year over Year) and the number of units sold in 2020 was up 13% (YoY), with the biggest increases in units sold above the $600K price point.
Inventory remains at historic lows starting 2021 with over 50% less inventory than January of 2020, with the inventory retraction essentially even across price ranges.
The increase in units sold and drastic decrease in available inventory has created a month of sales ratio at 1.4 months (historically low levels), and as you might expect, multiple offer situations and bidding wars. As of December 2020, 1 in 5 homes were selling above list price.
While the huge price increases and multiple offer situations are certainly prominent aspects of our current market, the interesting story is the decrease in new listings (down 8% YoY in 2020), especially in the lower price points.
Desert Hot Springs, Coachella, Cathedral City — Over 25% decrease in new listings.
Indio, Bermuda Dunes — Over 10% decrease in new listings.
Palm Desert, La Quinta, Palm Springs, Indian Wells, Rancho Mirage — Under 4% decrease in new listings.
Is the decrease in new listings due to potential sellers not wanting unnecessary exposure to COVID? Hard to tell, but this could be the case. As more residents of the Coachella Valley have received their vaccine, and we move closer to a more normal way of life, we could see an uptick in the number of new listings.
So, what can you do as a homeowner or buyer to fully leverage this crazy-hot market?
The truth is if you want into this market you need to find a professional well versed in how to navigate it. The Jelmberg Team has closed over $95 million in sales in the last 8 months alone, we understand this market and have the processes in place to maximize our clients’ interests, and do it safely.
Though some buyers may be deterred by interest rates ratcheting up a bit, many more are rushing to lock in affordable monthly payments while they still can. However, actually finding and getting an offer accepted has never been more challenging than right now in the Coachella Valley. Lean on an experienced real estate agent to make the best offer for you and be prepared to offer over list price.
For sellers, the number of listings could increase markedly over the next few months. If you have thought about selling your home, now may be the best time to beat a potential influx of homes on the market and maximize your net proceeds.
If you’ve even been entertaining the idea of selling your home this year, I invite you to follow this link to instantly calculate your home’s value in today’s market based on recent Coachella Valley sales: https://jelmberg.team/home-value
Or scan the QR code below with your phone: