Analyzing The Second Quarter of 2022 and What It Means for Local Real Estate

What a difference a couple of months can make for a real estate market.

In our first quarter 2022 report, the sustained trends of scarce inventory, rising prices, and strong demand from the prior 12-18 months were still prominent across the valley. The numbers paint a different picture for the second quarter of 2022.

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Inventory is rapidly climbing while activity is heading in the opposite direction. Prices remain stable due to still low inventory, but there are signs that price growth will be modest as opposed to explosive. Despite rising inventory and lower sales activity, the sale pace remains incredibly fast, and the listing discount reflects a premium for homes, coming in above 100% again.

However, as we head into the third quarter and the thick of the summer months, these two categories may see some regression correlated to higher inventory and cooler demand. More properties hitting the market will give buyers additional options to consider, so we expect to see an actual listing discount return and the sale pace slow down as well.

Overall, these shifts are a positive sign and will ultimately lead to a better long-term outlook for desert real estate. The frenzied pace of the pandemic-era market was simply not sustainable.

Recent deceleration of sales activity and the ripple effect it has across the major reporting metrics is a signal that this cooling will ultimately lead to a healthier Coachella Valley real estate market.

This is welcome news for both sellers and buyers as prices remain robust, while buyers have some leverage for the first time in years.  Second Quarter Analysis, Bennion Deville Homes’ “Buzz-Worthy,” July 19, 2022.

If you’d like more information about a particular city, community or neighborhood, please contact me at hdbjsteele@gmail,com or 760-219-1450.  We are ready to serve you.

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