Million Dollar Homes Rock the Coachella Valley May Housing Reports

May 2018 Housing Market Report

Coachella Valley & Cities

Palm Springs — Cathedral City — Rancho Mirage — Palm Desert — Indian Wells — La Quinta — Indio

Luxury Homes Dominated the Coachella Valley’s May 2018 Housing Report with a Whopping 42% Gain in the Number of Homes Sold Over $1 Million

Trendvision’s™ year-over-year (May 2017 vs. May 2018) market statistics indicate that homes priced over one million dollars are continuing to pick up steam, even as we make our way toward the summer months.

Most revealing was the Number of Homes Sold for $1M+ was up (+42.2%) from May 2017, and the Average Sale Price increased by (+5.4%) to $2,519,000. What’s more, the number of days it takes to sell one of these goliaths dropped by (-6.7%) to 128.

Looking back at the last few months, the trend we’ve been experiencing in luxury home sales has been steady all year. To be sure, we are showing signs of a late spring calming as indicated by a (+15%) increase in the number of Days on Market in May versus March and April this year. However, the Average Sales Price for homes sold in May increased by a respectable (+4%) for the same period.

What’s Up?

There are many reasons why people may be buying luxury homes—optimism about the future of our nation’s economy, rising home mortgage interest rates, transfer of equity from recent home and stock portfolio gains, and for sure, retirees (ten thousand a month) ready and able to purchase a sweet retirement dream home. Oh, and the fact that, for the past year, there has been a steady decline in the number of luxury homes available for purchase—simply, supply and demand economics at work.

Homes priced up to $499,999: Good news is the Average Sale Price is up by (+5%) to $318,000. However, this is the only category to show a decrease in the Number of Homes Sold (-7.3%) to 773. Inventory is still low; 1,780 homes for sale in May 2018 is a decrease of (-26%). The Days on Market actually increased to 86 days, an increase of (+70.4%). This mixed bag of market indicators isn’t very troubling since the home prices are up and inventory is still low.

Homes priced $500,000 – $999,999: All indicators in this category are positive. The Number of Homes Sold is at 233, or (+23.3%), and the Average Sale Price is $708,000, up roughly (+1%). The Number of Days on Market decreased to 99, a (-9.2%) drop, and the Number of Homes for Sale decreased to 974, a decline of (-11%). Overall, May’s statistics don’t signal any concerns.

By the Numbers and City Standouts!

According to TrendVision’s™ May housing statistics, the Coachella Valley real estate market is still going strong.

Specifically, ten of the eleven cities experienced gains in Average Sale Price. And, once more, Days on Market decreased for nine of the eleven cities.

• Cities with the highest percentage increases in Average Sale Price: Bermuda Dunes (25%); Thousand Palms (24%); Rancho Mirage (16.5%); La Quinta (13.5%); Indio (13%); Palm Springs (10%); Cathedral City (7.6%).
• Cities with the greatest percentage increases in the Number of Homes Sold: Coachella (80%); La Quinta (10%); Bermuda Dunes (5.3%); Cathedral City (5%); Indio (3%).
• Cities with the greatest percentage decreases in Days on Market: Palm Desert (-16.8%); Cathedral City (-13.8%); La Quinta (-13.8%); Rancho Mirage (-10.4%); Palm Springs (-7%); Desert Hot Springs (-7%).