We have just gone thru the quietest time in the Coachella Valley. Like clock work the valley will begin to see its population swell from here on out. The polo fields and golf courses are being prepared, restaurants are hiring and entertainment calendars are being booked.
The summer market still saw sales but saw a slight down tic in medium and luxury home sale. The lower end of the market however is a fast paced selling market fueled by year round working population.
Since 2012, Coachella Valley home prices have jumped 18-33 percent as the economy corrects itself, according to DataQuick. Fewer foreclosures, a short supply of homes for sale and high demand from second homebuyers willing to pay all-cash also fueled the price jump. Experts say the 7 percent year-over-year increase marks the return of a more “normal” market.
While home prices have skyrocketed, Coachella Valley median household incomes tumbled and largely stayed stagnant from 2009 through 2012, the most recent year available from the U.S. Census Bureau. Five cities reported income drops of 7 percent or greater during that period: Indian Wells, La Quinta, Cathedral City, Indio and Palm Desert.
I think all of this has fueled a buying frenzy for the more affordable housing sector of the Coachella Valley. Those buyers feel like it is now or never. Most of these home buyers were unable to purchase during the investor buying period as investors stronger all cash offers outbid the average person needing a loan on these lower priced homes. It is more common to see banks requiring owner occupants now than before.
What will happen to the market when some of these investor owned properties hit the market? At what price will they be offered? That is anyones guess.
The Coachella Valley is blessed with loads of cash buyers since it is a vacation destination and services people with discretionary income.
We have seen a steady stream of medium priced to luxury home sale throughout the summer. Much of this inventory saw slight price reductions due to the time of year. Going into the fall we are seeing more homes slowly being put up for sale and we should expect the asking prices to be higher for 2015 than the winter of 2013-2014.
Construction is again taking place. It is great to see new homes being built and new restaurants coming into the area. All good indicators of a slowly recovering market.
We should expect the Valley to be full for the 2015 season based on low availability of vacation rentals that remains compared to previous years.
If you would like to find out what your home is worth or make an investment in the Coachella Valley while the prices are still relatively low please give me a call.
Jessica Bailey-Realty Executives- 213-926-6471- jessiebaileyus@yahoo.com