Coachella Valley 2016 Real Estate Annual Market Trends

Sales and Prices Up in 2016

Sales of single-family, re-sale homes were up 7.2% in 2016, this after two years of declining sales.

The median price for single-family homes gained 2.9%, while the average price rose 3.2%.

Condo/attached home sales were up 8.6%.

The median price for condos/attached homes was 1.7% and the average price was down 0.4%.

Desert Real Estate Annual Home Statistics
        Change from Year Before
Year Sales Median Average Sales' Median' Average'
1999 4,410 $145,000 $224,493      
2000 4,886 $166,530 $266,243 10.8% 14.8% 18.6%
2001 4,094 $191,000 $285,983 -16.2% 14.7% 7.4%
2002 5,238 $230,000 $310,477 27.9% 20.4% 8.6%
2003 6,243 $267,000 $359,709 19.2% 16.1% 15.9%
2004 8,129 $355,000 $458,884 30.2% 33.0% 27.6%
2005 7,476 $415,000 $559,814 -8.0% 16.9% 22.0%
2006 5,291 $420,000 $617,574 -29.2% 1.2% 10.3%
2007 3,991 $449,000 $644,997 -24.6% 6.9% 4.4%
2008 5,514 $270,000 $430,706 38.2% -39.9% -33.2%
2009 6,966 $182,000 $291,282 26.3% -32.6% -32.4%
2010 6,535 $215,000 $342,995 -6.2% 18.1% 17.8%
2011 7,504 $195,000 $315,106 14.8% -9.3% -8.1%
2012 7,265 $227,000 $350,930 -3.2% 16.4% 11.4%
2013 7,840 $295,000 $425,106 7.9% 30.0% 21.1%
2014 6,405 $337,500 $483,928 -18.3% 14.4% 13.8%
2015 5,614 $344,945 $483,539 -12.3% 2.2% -0.1%
2016 6,018 $355,000 $498,964 7.2% 2.9% 3.2%

Desert Real Estate Annual Condo Statistics
        Change from Year Before
Year Sales Median Average Sales' Median' Average'
1999 3,876 $129,000 $159,778      
2000 3,793 $150,000 $180,204 -2.1% 16.3% 12.8%
2001 2,639 $161,000 $191,315 -30.4% 7.3% 6.2%
2002 3,512 $179,900 $200,688 33.1% 11.7% 4.9%
2003 3,870 $195,000 $218,742 10.2% 8.4% 9.0%
2004 4,194 $259,950 $283,402 8.4% 33.3% 29.6%
2005 3,336 $325,000 $353,274 -20.5% 25.0% 24.7%
2006 2,155 $350,000 $383,786 -35.4% 7.7% 8.6%
2007 1,830 $328,500 $363,529 -15.1% -6.1% -5.3%
2008 1,634 $277,500 $302,280 -10.7% -15.5% -16.8%
2009 1,660 $210,000 $225,802 1.6% -24.3% -25.3%
2010 2,058 $185,000 $208,378 24.0% -11.9% -7.7%
2011 2,414 $172,500 $200,310 17.3% -6.8% -3.9%
2012 2,637 $179,750 $205,066 9.2% 4.2% 2.4%
2013 3,466 $205,000 $224,399 31.4% 14.0% 9.4%
2014 3,044 $239,450 $263,642 -12.2% 16.8% 17.5%
2015 2,558 $231,000 $256,264 -16.0% -3.5% -2.8%
2016 2,777 $235,000 $255,270 8.6% 1.7% -0.4%

As you can see by the following charts, the largest swings in prices has been in the under $500K segment of the market. Above that, pricing has been pretty stable. Sales were up across the board, with the largest increase in the under $500K segment.

Median Prices
Percent Change From Year Before
  <$500K >=$500K and <$1MM >=$1MM
2000 12.7% 1.0% 0.0%
2001 14.5% 1.2% -3.8%
2002 18.3% -3.9% 0.0%
2003 13.8% 3.3% -3.2%
2004 23.4% 2.4% -1.1%
2005 16.9% 3.1% 3.0%
2006 0.1% -0.8% 2.6%
2007 -1.6% 1.5% 1.8%
2008 -33.8% -2.2% 7.9%
2009 -26.7% -1.5% -8.9%
2010 9.8% 0.0% -0.9%
2011 -8.9% -1.5% -1.8%
2012 16.4% -0.8% -1.8%
2013 24.2% 2.4% 3.3%
2014 10.3% 0.8% 0.4%
2015 7.0% -0.9% 0.9%
2016 3.1% -1.4% 0.4%
Home Sales
Percent Change From Year Before
  <$500K >=$500K and <$1MM >=$1MM
2000 108.2% 32.8% 58.0%
2001 -56.9% -4.7% -23.7%
2002 25.7% 47.9% 34.9%
2003 12.3% 70.2% 48.3%
2004 13.3% 102.2% 128.3%
2005 -18.3% 10.0% 46.5%
2006 -32.7% -33.3% -5.8%
2007 -30.9% -15.3% -17.4%
2008 93.1% -24.3% -28.1%
2009 41.4% -16.6% -41.1%
2010 -10.7% 15.9% 41.0%
2011 17.1% 8.5% -6.1%
2012 -6.2% 8.2% 22.9%
2013 -0.5% 48.8% 33.1%
2014 -23.7% -5.2% 5.5%
2015 -11.2% -15.6% -13.6%
2016 39.2% 17.0% 3.9%

California Association of REALTORS® 2017 Forecast

Home sales expected to edge up slightly in 2017, while prices post slowest gain in six years

Following a dip in home sales in 2016, California’s housing market will post a nominal increase in 2017, as supply shortages and affordability constraints hamper market activity, according to the "2017 California Housing Market Forecast," released today by the CALIFORNIA ASSOCIATION OF REALTORS ®’ (C.A.R.) .

The C.A.R. forecast sees a modest increase in existing home sales of 1.4 percent next year to reach 413,000 units, up slightly from the projected 2016 sales figure of 407,300 homes sold. Sales in 2016 also will be virtually flat at 407,300 existing, single-family home sales, compared with the 408,800 pace of homes sold in 2015.

"Next year, California’s housing market will be driven by tight housing supplies and the lowest housing affordability in six years," said C.A.R. President Pat "Ziggy" Zicarelli. "The market will experience regional differences, with more affordable areas, such as the Inland Empire and Central Valley, outperforming the urban coastal centers, where high home prices and a limited availability of homes on the market will hamper sales. As a result, the Southern California and Central Valley regions will see moderate sales increases, while the San Francisco Bay Area will experience a decline as home buyers migrate to peripheral cities with more affordable options."

C.A.R.’s forecast projects growth in the U.S. Gross Domestic Product of 2.2 percent in 2017, after a projected gain of 1.5 percent in 2016. With California’s nonfarm job growth at 1.6 percent, down from a projected 2.3 percent in 2016, the state’s unemployment rate will reach 5.3 percent in 2017, compared with 5.5 percent in 2016 and 6.2 percent in 2015.

The average for 30-year, fixed mortgage interest rates will rise only slightly to 4.0 percent in 2017, up from 3.6 percent in 2016, but will still remain at historically low levels.

The California median home price is forecast to increase 4.3 percent to $525,600 in 2017, following a projected 6.2 percent increase in 2016 to $503,900, representing the slowest rate of price appreciation in six years.

"With the California economy continuing to outperform the nation, the demand for housing will remain robust even with supply and affordability constraints still very much in evidence. The net result will be California’s housing market posting a modest increase in 2017," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "The underlying fundamentals continue to support overall home sales growth, but headwinds, such as global economic uncertainty and deteriorating housing affordability, will temper stronger sales activity."