Real Estate Market Update – Coachella Valley Housing Market Gaining Strength – February 25, 2009
The housing market in the Coachella Valley continues to show signs of improvement and stability. The follow excerpt, from an article written by the National Association of Realtors, suggests a predominant pattern of improvement.
Fourth Quarter Existing-Home Sales Surge in Most States, Prices Up in More Areas. Source: National Association of Realtors
Strong gains in existing-home sales were the predominant pattern in most states during the fourth quarter, with many more metro areas seeing prices rise from a year earlier.
The national median existing single-family price was $172,900, which is 4.1 percent below the fourth quarter of 2008; the median is where half sold for more and half sold for less. “This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” Lawrence Yun , NAR chief economist said.
Existing-home sales in the West jumped 16.2 percent in the fourth quarter...and are 18.2 percent above a year ago. The median existing single-family home price in the West was $227,200 in the fourth quarter, which is 8.9 percent below the fourth quarter of 2008, but with many areas showing notable gains.
“Markets in the West such as San Francisco, San Jose and Denver are showing double-digit price increases, and other markets like San Diego and Anaheim have begun to firm up,” Yun said.
The above article includes the entire Western United States. The following are similar statistics as they pertain to our local market in the Coachella Valley and indicate a strengthening market.
Existing Home Sales
Existing-home sales in the Coachella Valley were flat in the fourth quarter from the third quarter and were 23.4% above the fourth quarter a year ago. The average existing single-family home price in the Coachella Valley was $263,838 in the fourth quarter 2009, which was 3.4% below the fourth quarter of 2008, but 1.4% above the third quarter of 2009 levels. This suggests that while the year over year pace of home sales is increasing, the sales prices are stabilizing.
Sale Mix – Traditional versus Distressed Properties
Furthermore, in June of 2009, 35% of property sales in the Coachella Valley were traditional sales, while 65% were distressed sales.
At the end of January, 2010, 46% of property sales were traditional sales, while 54% were distressed sales.
As the mix of sales includes a smaller percentage of distressed properties, the average sales prices will start to stabilize and increase.
Relative Strength of Canadian Dollar versus U.S. Dollar
Another factor helping to pace the sale of homes in the Coachella Valley is the relative strength of the Canadian Dollar. During the first quarter of 2009, the Canadian Dollar averaged about $0.80 U.S. Dollars. Currently, the Canadian Dollar is trading at about $0.96 U.S. Dollars.
This means that a $300,000 home would have cost $375,000 Canadian Dollars in the first quarter of 2009. Today, that same $300,000 home would cost $312,500 Canadian Dollars.
This represents a 17% savings due simply to the increased purchasing power of the Canadian Dollar.
News Flash!...At the time of this writing, it is 71 degrees and sunny. The grass is green, the sky is blue, birds are singing in the trees and I believe I just heard someone shout “fore!” in the distance. The Coachella Valley continues to offer a lifestyle and atmosphere that attracts people from around the world.
If you are interested in exploring the housing opportunities here in the Coachella Valley, or you are an owner interested in selling and would like to determine the value and time it might take to sell, please contact us, the Stefanis at SandL@StefaniRealty.com or 760-406-1047. Visit our website at www.StefaniRealty.com for more information on specific properties and community information.