The month of March saw a strong surge in both sales and home prices throughout the region. The Valley's median detached home price in March was $415,000, which is 5.9% higher than a year ago. The Valley’s median attached price in March was $290,000, which is 7.8% above a year ago.
When we break down sales by price bracket, we discover the primary drop in sales are for homes priced under $400,000 due to the dwindling supply of homes in this price range as home prices increase. Unit sales of homes priced under $200,000 dropped from 119 units to 81 units this year. This is a decline of 32%. Sales of homes priced between $200k and $300k dropped from 206 units a month to 175, which is a decline of 15%. Sales of homes priced between $300k and $400k were off 10%. Sales and homes priced over $400k up through $1 million were comparable to last year.
So what does this all mean for a buyer. What can they expect when making an offer on a property? The latest “Sale Price Discount from List” is -2.3%, which is .1% less than a year ago. This was true last month, too. This ratio means the average home listed for $400,000 sold for $390,800, or a $9,200 price discount.
When we measure the median value of detached homes in the nine major cities, we see positive year over year gains in all nine cities. These gains range from a high of 25.7% for Indian Wells down to 1.8% for Palm Springs. Four cities have double digit gains. Besides Indian Wells, Rancho Mirage has a year-over-year gain of 15%, Desert Hot Springs has a gain of 15% and the city of Coachella is up 10%. There are similar positive returns for the attached home market with four cities showing double-digit gains.
Overall, the market is strong and relatively steady. With the recent announcement from the fed that they will not raise rates for the remainder of 2019, we expect to see an uptick in interest from the buying public. For sellers you can count on your property moving quickly and getting very close to asking if it's priced right.
Whether your buying or selling, reach out and let me help you make the transition to your next inspired home.