SUMMER REAL ESTATE TRENDS IN LA QUINTA GOLF COURSE COMMUNITIES
The story of record-breaking summer temperatures in the Coachella Valley seems to be on repeat the last couple of years. This summer was no exception as Palm Springs broke a temperature record in mid-July by three degrees with a high of 119 degrees. That same week in Thermal, temperatures reached 122 degrees, breaking another 2014 record by three degrees.
The soaring temperatures didn’t stop home buyers from lathering up with sunscreen, cranking up the A/C and making their way into La Quinta golf communities to search for property. From May 1st to September 15th, 138 homes sold and the median sale price rose from the same time period last year by approximately $59,000 to $900,000. The statistic you can’t ignore is the absorption rate of 6.13, indicating the communities could be transitioning to a sellers market. It will be really interesting to see how the market reacts in the next couple of months. We will be watching the absorption rate closely as a continued downward trend will drastically change the strategies we implement for our sellers and buyers. With inventory in the communities on the low side (52 active listings as of 9/17/18), and the current momentum of the stock market, the overall sentiment from our team is real estate in La Quinta golf communities is going to sizzle this fall!
ABSORPTION RATE IN LA QUINTA
(5/1/2018 – 9/15/2018)
6.13Months
AN ABSORPTION RATE UNDER 6 INDICATES A SELLERS MARKET
# OF PENDING AND CONTINGENT SALES
(5/1/2018 – 9/15/2018)
52
# OF ACTIVE UNITS
(5/1/2018 – 9/15/2018)
188
|
Median Sqft |
Median List Price |
Median Sale Price |
Median $/Sqft |
Median SP / LP |
Median DIM |
# of Units Sold |
|
|
5/1/18 – 9/15/18 |
3,353 |
$927,000 |
$900,000 |
$268.42 |
97.09% |
114 |
138 |
|
5/1/17 – 9/15/17 |
3,348 |
$882,500 |
$841,250 |
$251.27 |
95.33% |
118 |
136 |
|
2018 |
|||||||
|
1st Quarter |
3,551 |
$1,062,000 |
$974,500 |
$274.43 |
91.76% |
92 |
102 |
|
2nd Quarter |
3,365 |
$949,000 |
$913,000 |
$271.32 |
96.21% |
106 |
125 |
|
2017 |
|||||||
|
1st Quarter |
3,300 |
$875,000 |
$842,000 |
$255.15 |
96.23% |
97 |
116 |
|
2nd Quarter |
3,370 |
$1,000,000 |
$965,000 |
$286.35 |
96.50% |
118 |
115 |
|
3rd Quarter |
3,069 |
$780,000 |
$750,000 |
$244.38 |
96.15% |
126 |
75 |
|
4th Quarter |
3,029 |
$887,000 |
$857,500 |
$283.10 |
96.67% |
96 |
56 |
WHAT IS ABSORPTION RATE?
The rate at which available homes are sold in a specific real estate market during a given time period. It is calculated by dividing the average number of sales per month by the total number of available homes.
AS PER THE NATIONAL ASSOCIATION OF REALTORS
- First, determine the number of homes closed in your market over a specific period — say, 12 months.
- Next, divide the number of homes by the number of months in the period — in this case, 12. This calculation gives a per month absorption rate.
- Last, divide the rate into the number of current listings. This yields the months’ supply of homes.
SOURCE: Desert Area MLS
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[…] The soaring temperatures didn’t stop home buyers from lathering up with sunscreen, cranking up the A/C and making their way into La Quinta golf communities to search for property. From May 1st to September 15th, 138 homes sold and the median sale price rose from the same time period last year by approximately $59,000 to $900,000. The statistic you can’t ignore is the absorption rate of 6.13, indicating the communities could be transitioning to a sellers market. It will be really interesting to see… Read More on the Jelmberg Team Website > […]