Coachella Valley real estate saw the end of the market frenzy last year with a sudden drop in sales activity due to the rise in interest rates as well as the media focus on inflation and a potential recession. Four months into 2023, the market is starting to pick up again.
In a recent interview, Frank Alvarez, an associate broker of Berkshire Hathaway, told Coachella Valley Times the current market in the Coachella Valley is now stable and that home prices have leveled off. Though there is still low inventory compared to pre-pandemic levels, the area is experiencing growth in available inventory, which gives buyers more choices. This is a step up from last year when the Coachella Valley had a historically low supply.
“We are not seeing distress sales, and sellers do not seem motivated to discount,” Alvarez said. “Buyers, on the other hand, are beginning to realize that home prices are not going to suddenly drop, and they are getting used to the idea that 3-4% interest rates will not be returning anytime soon, so they are beginning to become used to the new market reality and are back!”
According to the March 2023 Desert Housing Report, homes no longer go under contract within 24 hours of hitting the market. 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%, the report said. Additionally, the average time it takes for a property to sell has increased from 25 days to 48 days in the last year, according to the Desert Housing Report.
Alvarez said the current recession is a breath of fresh air for the housing market, as the recent elevated level of activity was not sustainable.
“Employment figures are strong, so this 'recession' is not one of distressed consumers or homebuyers,” he said. “Also, with consumer pullback in retail, inflation is going down. This year, after everyone has caught their breath, we are seeing sales numbers rising moderately and activity has picked up over the last couple of months.”
Berkshire Hathaway is one of the most recognized real-estate organizations in the country. Alvarez said while the name may conjure luxury and ultra luxury properties, they serve homebuyers and sellers in every price range with the most experienced agents. Serving the Coachella Valley since 2005, Alvarez has been a licensed broker since 1991, previously focusing on South Orange County.