All the Coachella Valley cities are still considerably below their 2006 home prices except Palm Springs, which is now only 15 percent shy of its peak.
A year ago it took 74 days to sell the median home in the Coachella Valey. That number is creeping closer to 90 days this year, which may put pressure on homeowners to reduce their asking price.
Inventory is rising with the prices of homes, affecting affordability and ultimately sales. Tight (and unnecessary) lending standards of the banks also affect sales, although Fannie Mae and Freddie Mac have been working hard to counteract and change this.
For sales to increase, we need the number of qualifying home buyers to grow. Growth in home buyers at this point depends on banks loosening their credit standards.
The Coachella Valley real estate market might seem like it has effectively recovered from the severe crisis of a few years ago. However, when we look at more than home prices, we find the situation is less than ideal.
The median price per square foot in the Coachella Valley rose by $3 in October to $173, essentially unchanged since last February.
The median home price per square foot in the Coachella Valley was unchanged in September at $171, marking five months of essentially unchanging home prices.
Income-driven purchasing activity is weak, while market-driven sales fare well.
For the second consecutive month, the median price per square foot for the entire Coachella Valley declined 2.2 percent in July from $175 to $171.
Housing prices continued to inch up in May for the seventh consecutive month, even as sales continued on a year-over-year decline.