2018 Year End Market Update
First, wishing you a Wonderful and Healthy New Year. For those friends we served, a big thanks to each one of you, for your trusting friendships. We have so much to be grateful for, and it is truly our pleasure here at Dave Kibbey & Associates to help you with your real estate needs. The Business is so gratifying to me, helping people achieve their goals, in many cases, if not their biggest goal… buying or selling their home and moving on to the next step in their lives, certainly an important financial decision where clients find it prudent to hire a specialist that understands the market and has a proven track record. Thank you again for the opportunity to provide you the highest professional services.
Twenty-Eighteen – In the four Cities of my expertise (Rancho Mirage – Palm Desert – Indian Wells – La Quinta) home sales numbers were strong, with almost every price segment in all four cities increasing in both the numbers of homes sold and median sales price, including the number of days to sell a home reduced. All price segments (in the above-mentioned Cities) except the $1.75M-$2M off just slightly, performed well. The largest jump in sales numbers was Palm Desert, in the $250K-$500K segment, from 893 homes in 2017 to 1015 homes in 2018. In addition, this the median sales price rose from $335,000 – $340,000. Palm Desert Luxury market sold 15 homes above $3M (9 homes in 2017) with an average sale price of $5.4M. Overall 229 more Palm Desert homes sold in 2018 than in 2017. Collectively, in all four Cities, sales were up 2.4%, Pending Sales up .7% and Inventory was down 8.2%, reflecting gradual healthy growth.
Savvy investors and economists have noticed that real estate booms and busts come in cycles. The real estate rise around the start of the new Millenia and the subsequent crash in 2008 was one example of this cycle. While a variety of other economic factors can slightly alter these cycles and exaggerate the intensity of the peaks or falls, these patterns help us forecast how long a real estate rise will last, and therefore, how long a Seller’s market lasts.
We are now 10 years into this cycle. In surrounding markets such as Orange County, Los Angeles and San Diego sales have slowed approximately 20% year over year. Currently as inventory levels rise, there is uncertainty as to how our Desert market will perform in 2019. This offers buyers more homes to choose from, in some cases slowing the buying process as buyers want to feel confident, they are buying right, and in some cases making sellers anxious and motivated; therefore, reducing their prices to get their homes sold.
I believe 2019 will be another great year. We are blessed to live in such a beautiful paradise, more and more people come to find each year. I am excited about this coming year and helping many more home buyers and sellers achieve their goals. We are proud to have an amazing inventory of some of the finest listings in prime locations throughout this beautiful Desert. I hope you find my Market Updates helpful and informational. Please click here to view the market update chart and feel free to reach out to me with any thoughts or questions. We are here to serve you.