A measurable decline in investor sales and a significant increase in higher-end home buyer sales means a much healthier Coachella Valley market.
The Pattern in valley housing over the last two years has been strong price increases fueled not by a powerful wave of home buyers but by a severe lack of home sellers. However, this pattern might finally be changing.
Even after five years of the strongest government stimulation in American history, real wages are still down 10 percent, and the broadest measure of unemployment is 12.7 percent, just 4 percent less than its all-time high.
Even though home prices in the valley have risen 55 percent and distressed sales have fallen to 15 percent from a high of 60 percent, many people worry about this housing market.
A 1 percent increase in mortgage rates in June and July scared many homebuyers, and generated a growing belief the recovery was over because higher rates were ahead.
The slow housing season has begun in the Coachella Valley — a good time to review the progress of the recovery. Pricewise, it’s doing well.
Housing continues strong recovery throughout the Coachella Valley. The median price per square foot had risen 23 percent over last year.
Home prices in the first four months of the year continued to surge at double-digit rates. A close look at these large gains reveals an important mechanism driving the housing recovery in the Coachella Valley.
Home prices are higher, but there is concern that the Fed’s Quantitative Easing program might create another price bubble or that rising mortgage rates of the last few months will stop the housing recovery.
Results for the first quarter of 2013 show the continuation of the strong housing recovery begun last year.