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July 11th, 2017

June 2017 over June 2016 Market Update

Good News… The market is heating up!

Yes… it’s been HOT! Temps from 108-122 degrees, and the market is heating up too!

Year over Year, the market is heating up with increased sales numbers in most price segments from the median home price to fine luxury homes. Historically… the lower the sales price the more homes sold, the higher the sales price less homes sold, though increased sales numbers do not always initially mean higher sales prices. For example, much of the luxury home market clearly remains a buyers’ market, with volatile inventory levels in price segments above the $750,000, as many sellers have had to reduce their asking price once, twice, some three times to get their homes sold. As the market show improvement, it is somewhat typical to see initial listing overpricing. I can appreciate this mindset as seller’s do not want to leave money on the table. Though often in markets like this, this way of thinking ends up netting sellers less at closing, due to price reductions and accumulated days on market. Like the $250K – $500K median-priced home market, the more realistic sellers are, the more realistic buyers we will see in the market place. Along with this, we will also very likely see fluidity with rising prices in the luxury home market as well.

Here is the breakdown – Many price segments have experienced growth, some in both the number of homes Sold, along with Sales Prices, some segments with substantial improvement, others as previously mentioned have dipped.

$250K – $500K Price Segment – Rancho Mirage had 163 sales in the 1st half of 2016 and 230 sales in the 1st half of 2017. Palm Desert had 436 sales in the 1st half of 2016 and 511 sales in the 1st half of 2017. Indian Wells, the smallest of the four communities had 42 sales in the 1st half of 2016 and 67 sales in the 1st half of 2017. La Quinta had 340 sales in the 1st half of 2016 and 430 sales in the 1st half of 2017. Along with substantial growth in sales numbers, both Rancho Mirage and La Quinta enjoyed slight gains in the median sales price; Rancho Mirage with a 1% increase, and La Quinta with 2.75% increase, though both Palm Desert and Indian Wells median sales price dropped slightly, Palm Desert 2.75% decrease, and Indian Wells 6% decrease (see attached spreadsheet).

$500,000-$750,000 Price Segment – Rancho Mirage had 79 sales in the 1st half of 2016 and 108 sales in the 1st half of 2017. Palm Desert had 79 sales in the 1st half of 2016 and 108 sales in the 1st half of 2017. Indian Wells dipped with 49 sales in the 1st half of 2016 and 41 sales in the 1st half of 2017. La Quinta had 122 sales in the 1st half of 2016 and 162 sales in the 1st half of 2017.

$750,000 – $1M Price Segment – Rancho Mirage was par with last year, 33 sales in the 1st half of 2016 and 33 sales in the 1st half of 2017, though the median sales price dropped from $873,850 to $810,000. Palm Desert was also par with 26 sales in the 1st half of 2016 and 26 sales in the 1st half of 2017 with a slight increase in median value. Indian Wells jumped from 20 sales in the 1st half of 2016 and 33 sales in the 1st half of 2017, though the median sales price dropped from $866,250 last year to $825,000 this year. La Quinta jumped substantially from 50 sales in the 1st half of 2016 to 76 sales in the 1st half of 2017, though the median sales price dropped from $850,000 last year to $833,750 this year.

$1M – $1.25M Price Segment – Rancho Mirage dipped with 26 sales in the 1st half of 2016 and 19 sales in the 1st half of 2017. Palm Desert also dipped with 10 sales in the 1st half of 2016 and 7 sales in the 1st half of 2017. Indian Wells jumped from 10 sales in the 1st half of 2016 to 13 sales in the 1st half of 2017. La Quinta almost doubled sales numbers with 27 sales in the 1st half of 2016 and 49 sales in the 1st half of 2017, though the median sales price in this segment dropped from $1,150,000 in 2016 to $1,100,000 in 2017.

$1.25M – $1.5M Price Segment – Rancho Mirage jumped from 15 sales in the 1st half of 2016 to 19 sales in the 1st half of 2017, though the median sales price in this segment dropped from $1,409,827 in 2016 to $1,350,000 the first half of this year. Palm Desert jumped from 3 sales in the 1st half of 2016 to 211 sales in the 1st half of 2017, though the median sales price in this segment dropped from $1,450,000 last year to $1,345,000 the first half of this year. Indian Wells dipped from 12 sales in the 1st half of 2016 to only 6 sales in the 1st half of 2017, though the median sales price in this segment remains $1.4M. La Quinta jumped from 15 sales in the 1st half of 2016 to 22 sales in the 1st half of 2017, though the median sales price dropped just slightly.

$1.5M – $1.75M Price Segment – Rancho Mirage up is from 12 sales in the 1st half of 2016 to 19 sales in the 1st half of 2017, though the median sales price in this segment dropped slightly. Palm Desert was par with 2 sales in the 1st half of 2016 and 2 sales in the 1st half of 2017, though the median sales price in this segment rose from $1,537,500 in 2016 up to $1,650,000 the first half of this year. Indian Wells up slightly with 7 sales in the 1st half of 2016 and 8 sales in the 1st half of 2017. La Quinta jumped from 10 sales in the 1st half of 2016 to 14 sales in the 1st half of 2017, along with a slight increase in the median sales price in this segment which jumped from $1,600,000 in 2016 to $1,612,500 the first half of this year.

$1,750,000 – $2M Price Segment – Rancho Mirage sales dipped with 5 sales in the 1st half of 2016 and only 2 sales in the 1st half of 2017, though the median sales price in this segment for those two sales rose from $1,800,000 in 2016 to $1,912,500 the first half of this year. Palm Desert was par with 3 sales in the 1st half of 2016 and 3 sales in the 1st half of 2017, and the median sales price in this segment rose from $1,900,000 in 2016 to $1,975,000 the first half of this year. Indian Wells rose from 3 sales in the 1st half of 2016 to 4 sales in the 1st half of 2017, though the median sales price in this segment dropped from $1,409,827 in 2016 to $1,350,000 the first half of this year, also with a slight increase in sales price. La Quinta sales were half this year with 16 in the 1st half of 2016 and only 8 sales in the 1st half of 2017, though the median sales price for these 8 sales rose from $1,837,500 in 2016 to $1,926,500 the first half of this year.

$2M – $2.5M Price Segment – Rancho Mirage dipped from 8 sales in the 1st half of 2016 to 6 sales in the 1st half of 2017, and the median sales price in this segment dropped from $2,337,500 in 2016 to $2,227,287 the first half of this year. Palm Desert had 2 sales in the 1st half of 2016 and 3 sales in the 1st half of 2017, with a slight increase in median sales price. Indian Wells dipped from 7 sales in the 1st half of 2016 and 5 sales in the 1st half of 2017, along with a slight dip in median sales price. La Quinta doubled its sales numbers from 4 sales in the 1st half of 2016 to 8 sales in the 1st half of 2017, though the median sales price in this segment dropped from $2,184,850 in 2016 to $2,143,750 the first half of this year.

$2.5M -$3M Price Segment – Rancho Mirage jumped from 2 sales in the 1st half of 2016 to 4 sales in the 1st half of 2017, and gained value in this price segment with the median sales price in this segment $2,700,000 in 2016 up to $2,972,500 the first half of this year. Palm Desert was par with 2 sales in the 1st half of 2016 and 2 sales in the 1st half of 2017, along with the median sales price in this segment up from from $2,662,500 in 2016 to $2,725,000 the first half of this year. Indian Wells rose from 1 sale in the 1st half of 2016 to 2 sales in the 1st half of 2017, though the median sales price in this segment dropped $200,000 from $2,900,000 in 2016 to $2,700,000 the first half of this year. La Quinta was par and strong with 5 sales in the 1st half of 2016 and 5 sales in the 1st half of 2017, the median sales price remained par at $2.8M.

Finally, $3M and UP Price Segment – Showing Strength – This entire segment outperformed last year’s numbers. Rancho Mirage jumped from 1 sale in the 1st half of 2016 and 2 sales in the 1st half of 2017, though the median sales price in this segment dropped from $3,600,000 in 2016 to $3,300,000 the first half of this year. Palm Desert jumped from 5 sales in the 1st half of 2016 and 8 sales in the 1st half of 2017, along with a BIG jump in the median sales price in this segment, from $3,895,000 in 2016 up to $4,887,500 the first half of this year. Indian Wells was strong and jumped from had 0 sales in the 1st half of 2016 to 12 sales in the 1st half of 2017, with the median sales price in this segment at $3,940,000. La Quinta also jumped from 7 sales in the 1st half of 2016 and 8 sales in the 1st half of 2017, though the median sales price in this segment dropped from $3,900,000 in 2016 to $3,755,000 the first half of this year.

As you can see from the 1st half of 2017, the market in most price segments is showing exciting signs of improvement. If you’re a Buyer, jump into the market now and take advantage of inventory and prices, especially while mortgage rates remain low, as rates are clearly on the rise. If you’re a Seller, in setting your expectations for the 2017 Fall Season, do your homework, work with a proven professional, and set your expectations right from the beginning. If you do, there’s a high likelihood you will achieve your goal and make your move.

I hope you found this important market update useful and informative. If you have any questions, perhaps you’re thinking of Buying or Selling, please feel free to reach out to me. I welcome the opportunity to meet with you, discuss what is important to you, and help you achieve your goals.

Have a wonderful Summer!

For more details on sales numbers, please click here to view the attached spreadsheets.