How did the Real Estate Market perform in 2016? Volatility with improvement…
Aloha from Kona Hawaii,
As my wife and I bring in the New Year with Aloha spirit, our annual tradition, we think back over 2016. There were good’s and bad’s as we all experience in a years time, yet ultimately we feel so blessed. Having a great family, great friends, great clients and a thriving business I’m truly passionate about.
How time flies by… Twenty-Sixteen was another great year in our amazingly beautiful Coachella Valley. Overall sales numbers in most price segments were up slightly over 2015 numbers showing some momentum in the market, though most price segments with a few notable gain exceptions, experienced a slight drop in value.
As you review the attached data grid, you will find in the four areas of my expertise; Rancho Mirage, Palm Desert, Indian Wells and La Quinta, many price segments experienced an increase in sales, though the median sales price dipped, with the exception of a few good gains as you will find below.
For example starting from the bottom ($250K-$500K price segment) in Rancho Mirage, 301 homes sold in 2016 verses 267 in 2015… good growth, though the median sales price dipped from $397K to $370,000K, a 7% decrease in value. Palm Desert experienced a shot in the arm with 777 sales in 2016 vs 737 in 2015, with a 3.5% gain in values. Indian Wells sales dropped in this segment from 81 to 74, but gained $4,500 in the median sales price year over year. La Quinta experienced a significant increase in sales in 2016 from 556 in 2015 to 650 in 2016, a 17% gain, with a slight dip in median sales price from $345K to $342,500.
In the $750 -$1M price segment both Rancho Mirage and Indian Wells experienced gains in both sales and values, from 25 sales in 2015 to 40 in 2016 along with a 5% gain in median sales price.
Rancho Mirage experienced another notable jump in the $1.25M – $1.5M segment with 27 sales in 2016 over 20 in 2015, along with a 6.5% increase in median sales price. Another notable jump in the luxury market – La Quinta in the $1.75M – $2M price segment with a 51% jump in sales from 11 sales in 2015 to 23 sales in 2016, though the median price dropped in this segment slightly (1/4%) from $1.85M to $1.845M, though great momentum.
La Quinta experienced the most Luxury to high-end Luxury homes sales with 40 sales in the $1M – $1.25M segment, 24 sales in the $1.25M – $1.5M, 16 sales in the $1.5M – $1.75M, 23 sales in the $1.75M – $2M, 11 sales in the $2M – $2.5M, 8 sales in the $2.5M – $3M and 13 sales above the $3M – Up price segment. La Quinta by far experienced the BEST sales numbers in 2016.
What’s causing continued volatility and holding the market back overall from seeing consistent appreciation like many other areas of the country? High inventory levels in most price segments throughout 2016 continued to outpace demand slowing momentum and causing buyers to pause a bit over the past two years slowing sales momentum.
Finally… there is an obvious post-election confidence in the market, as the amount of buyer inquiries I am experiencing is enormous. Mortgage rates will rise this year, in fact we’ve already seen some increases, so get out and buy! I cannot reiterate enough, if you’re thinking of buying in 2017, take advantage of a good selection of homes and low mortgage rates. This time may be a great opportunity for you to find the home of your dreams.
Please feel free to reach out to me for help or questions, I welcome the opportunity to serve you.
In closing, I thank You all for another year of friendship, fun and success in helping so many people achieve their goals.
Here’s to a GREAT 2017!
For more details on sales numbers, please click here.