Donna’s Coachella Valley Market Report: Jan 1 – Mar 26, 2020

Coachella Valley Riding High on a Wave of Home Sales

First quarter home sales in the Coachella Valley (CV) are booming compared to the same period last year. All eight major CV cities, except Palm Springs, experienced substantial increases in the number of homes sold—by as much as (+70%)—and a (+17%) increase for pended homes.

What’s more, average and median home prices increased in six of the eight cities, by as much as (+17%) in Palm Desert, and (+31%) in Bermuda Dunes.

Higher Priced Houses Selling Amid Higher Inventory

When looking at the same eight cities by pricing categories, homes priced $500,000+ experienced a (+25%) increase in the number of homes sold, and those priced $1M+ saw a (+23%) increase. Average sold prices for homes priced $1M+ rose the most (+6%).

Helping to drive first quarter home sales was a substantial increase in the number of homes on the market, especially those priced $500,000–$999,999 (+49%), and $1M+ (+73%). For years, residential home inventory in the Valley has been low. But while increased inventory is an important market factor, there is obviously something else going on.

Fundamentals of a Booming Retirement Market

Certainly, there are many factors at play that impact our residential home market, such as a strong national economy, high employment, and consumer confidence. But dig deeper… there is more to it.

For example, market data in major employment centers like Seattle reveal that Gen X and Millennial generations are snapping up family homes just as thousands of Baby Boomers are finally ready to retire. Thousands of Boomers had to postpone retirement due to the financial impacts of the 2007–2011 recession, which added to an already low inventory of homes in an area of high employment. This shortage of inventory continues to push housing prices higher, making it a financially lucrative time for Boomers to cash out their homes and invest those healthy gains in our Coachella Valley market.

Post Covid-19 Prediction: When the Clouds Pass, Clear Skies and Booming Sales Ahead

As I mentioned earlier in this blog, the fundamentals driving the first quarter home buying boom are still there, and there is every reason to believe that once the Covid-19 virus is contained, the home buying boom for Trilogy will return—perhaps even stronger than before. Here are a few reasons why:

• Pent-Up Demand: Tens of thousands of seniors who postponed retirement due to the last decade’s recession, and are now derailed due to Covid, will be more eager than before to buy their desert retirement or vacation homes.
• Emotional Release of Surviving a Life-Threatening Event: Euphoria at having survived this deadly threat will leave many seniors less concerned about stockpiling cash, and more concerned about living for the day.
• Post-Trauma Economic Booms: Throughout history, when faced with life-and-death challenges, individuals and businesses rise to the occasion by adapting and innovating needed advancements and efficiencies in technologies and services. The impact of these changes generally helps to advance society and create new businesses and jobs, leading to stronger economies and healthier bottom lines.

Rancho Relaxo! Exceptional Golf Course, Pool and Mountain View Home

Trilogy La Quinta, 81578 Ulrich Dr., La Quinta, CA 92253

• Square Footage: 1,845 sq. ft.
• Layout: 3 bedrooms, 2 bathrooms
• Parking: Garage fits 2 cars + golf cart

Sit back, relax and take in the panoramic golf course and mountain views from your custom, stone-stacked saltwater pool and spa. After a day of fun, dine and drink with friends at your own private, restaurant-grade fire pit dining table.

Designed to capture the natural beauty of this breathtaking location, the property features expansive views of the 2nd fairway, a water view of the 17th green, and sweeping 180-degree views of the Chocolate and Coral mountains. High ceilings, walls of windows, and custom features make indoor/outdoor living seamless, elevating the comfort and joy of life lived alongside the desert experience.

Special Features:

• XL premium golf lot
• Large, professionally designed pool of desert gold stacked-stone with 2 cascading waterfalls and a soothing spa
• Custom granite fire pit table
• Customizable outdoor ambiance (change pool light colors and yard lighting)
• Bose sound system inside and outside
• Extensive custom patio decking designed from the pages of "Architectural Digest"
• Distinctive interiors offering comfort and luxury with 10 ft. ceilings
• 6-inch custom baseboards and walls of windows to capture spectacular views
• Electric window sun shades in the living room and master bedroom; imported flooring
• Built-in custom wine refrigerator

Call for a personal tour at 206.755.9823 or visit my website for more information.

This home won’t last. Tell all your friends and neighbors about it!

Call 206.755.9823 for More Information or a Personal Tour!