Housing markets around the country continue to readjust to increased interest rates, and the Coachella Valley is not exempt from those effects.
But Kevin Stanley, a Realtor serving the Coachella Valley area, says the desert cities are seeing some change with a recent increase in inventory.
“The Coachella Valley inventory has increased from its record low of 596 listings at the beginning of 2022,” Stanley told the Coachella Valley Times this week. “Historically before COVID-19, the inventory ranged from 3,000 to 3,500 listings for the Coachella Valley giving buyers a lot more options.”
Homes no longer go under contract within 24 hours of hitting the market, the March 2023 Desert Housing Report for the Coachella Valley said. While there are still some properties that attract multiple offers and sell above the asking price, only 13.4% of sales closed above the listing price, compared to last year's figure of 50.3%. Additionally, the average time it takes for a property to sell has increased from 25 days to 48 days in the last year.
Though inventory has increased, available inventory is still lacking and continues to be a challenge for buyers, which Stanley says benefits sellers by keeping prices higher.
“Inventory for the entire Coachella Valley is averaging about 2,000 listings per month for the last six months, about 1,500 single-family homes and 500 condominiums,” he told the Times.
When it comes to expectations for the rest of the year, Stanley doesn't think much will change.
“Inventory will continue to remain low, benefiting sellers,” he said. “Interest rates will be a challenge until inflation is reduced.” He went on to say that homeowners with existing low-interest mortgages are hesitant to sell and buy a home with a higher interest rate. Similarly, homeowners who have already paid off their mortgage may also be holding off on selling as they have no pressing need to purchase a new property.
Stanley has been a Realtor with Bennion Deville Homes since 2016 and works with both buyers and sellers in all the desert cities. Bennion Deville Homes has been the proven No. 1 leader in both sales and listings throughout the Coachella Valley from January 2009 to today.