As the Coachella Valley housing recovery continues to evolve, the area’s median price per square foot declined slightly in February. Of the nine desert cities, six grew and three declined.
The median price per square foot for the Coachella Valley rose another 4 percent to $135 in January — a three-month increase of 14 percent. Market Watch projects a year-end price of $150, assuming sales pick up in the next few months.
Most observers wonder whether last year’s price gains will continue this year and into next. The forces of supply and demand, which drive the prices of all markets, appear more positive than ever for desert housing.
Housing statistics show the median price per square foot for all houses in the Coachella Valley increased $5 to $126 in November 2012. Gains maintained through the slow season indicate that prices will likely advance again early this year.
As of Nov. 1, the Coachella Valley’s median home price per square foot was up 20 percent year over year, as values maintained double-digits price gains earned earlier in the year. This change in the price pattern is very positive.
From statistics, we know the bottom for home prices throughout the Coachella Valley generally occurred in September 2011. Because of this, home prices as of Oct. 1 are ideal to show the year-over-year percentage change.
It’s always good to look at the long-term picture after any housing or financial crisis. The charts below show the median price of homes throughout Riverside County from 1982 to the present and the Riverside County affordability index.
Prices rise and inventory shrinks as Coachella Valley real estate regains its health.