The story of record-breaking summer temperatures in the Coachella Valley seems to be on repeat the last couple 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 the community to search for property. From May 1st to September 15th, 121 homes sold and the median sale price rose from the same time period last year by approximately $37,000 to $357,000. The days on market (DIM) also decreased by 15 days to 50 during this time period, but the statistic you can’t ignore is the absorption rate of 2.01, indicating the community is still very much in a sellers market (check out the feature article in April’s issue for buyer recommendations and seller misconceptions in a sellers market). With the inventory in the community still at lows we haven’t seen (54 active listings as of 9/17/18), it’s safe to say Real Estate in Sun City Palm Desert this fall is going to sizzle!
ABSORPTION RATE IN SCPD
(5/1/2018 – 9/15/2018)
2.0Months
AN ABSORPTION RATE UNDER 6 INDICATES A SELLERS MARKET
# OF PENDING AND CONTINGENT SALES
(5/1/2018 – 9/15/2018)
27
# OF ACTIVE UNITS
(5/1/2018 – 9/15/2018)
54
|
Median Sqft |
Median List Price |
Median Sale Price |
Median $/Sqft |
Median SP / LP |
Median DIM |
# of Units Sold |
|
|
5/1/18 – 9/15/18 |
1,858 |
$359,000 |
$357,000 |
$192.14 |
99.44% |
50 |
121 |
|
5/1/17 – 9/15/17 |
1,768 |
$329,500 |
$320,000 |
$181.00 |
97.12% |
65 |
150 |
|
2018 |
|||||||
|
1st Quarter |
1,900 |
$369,000 |
$359,000 |
$188.95 |
97.29% |
62 |
93 |
|
2nd Quarter |
1,936 |
$384,500 |
$378,500 |
$195.51 |
98.44% |
64 |
104 |
|
2017 |
|||||||
|
1st Quarter |
1,836 |
$329,000 |
$319,500 |
$174.02 |
97.11% |
65 |
102 |
|
2nd Quarter |
1,790 |
$339,000 |
$330,000 |
$184.36 |
97.35% |
65 |
133 |
|
3rd Quarter |
1,900 |
$342,500 |
$339,000 |
$178.42 |
98.98% |
57 |
69 |
|
4th Quarter |
1,999 |
$364,950 |
$354,500 |
$177.34 |
97.14% |
61 |
86 |
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
