The median price per square foot for the Coachella Valley remains unchanged, but the year-over-year change in city prices is still rather positive.
The Coachella Valley housing market as measured by price has nearly recovered from crash levels.
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.
A comparison of the housing markets in two major Coachella Valley cities — Palm Springs and La Quinta — shows a strain needn’t always occur in the housing recovery
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 the last six months, the financial community has been speculating about when the Federal Reserve will start raising interest rates.
If the banks don’t start easing up on their tight credit requirements, our general forecast is that housing prices will be essentially unchanged. However, if they do ease up, we think a further price increase of 10 percent is possible.
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.