May, 2014 Sales Analysis

Here are the latest sales numbers for all homes sold within the City of La Quinta as well as all Golf Course homes in La Quinta from January, 2008 through May, 2014.

The inventory of “Active Listings” in the Coachella Valley decreased from April to May which is usual as we approach the summer season. The number of Sold units decreased significantly over the same period last year (May, 2013) which was the best month since 2008. The main reason is that the inventory has decreased in April and May. The pace at which real estate prices increased in the October to January period seemed to slow to a more normal rate in February through May. The price rise slowed as did the home sales. The activity in the million dollar+ market seems to have picked up but prices have not increased as much as they have for the under a million homes.

 

 

 

 

Below is the chart depicting the “bubble” in sales versus the historical 4.5% annual appreciation. As predicted by the National Association of Realtors back in 2005. It will be interesting to see how close the actual sales prices stay to the “Normal Appreciation” line in the coming months. One of the reasons for the recent price increases is that we have seen more American buyers in the market than in the past few years which is a sign that our economic outlook seems to be improving.

 

Here are some yearly sales figures (units) for the City of La Quinta from 2002:

Year	All	LQ Golf Course
2002	1,356	259
2003	1,572	640
2004	1,938	785
2005	1,563	638
2006	1,118	483
2007	942	444
2008	1,076	405
2009	1,202	409
2010	1,360	518
2011	1,446	510
2012	1,532	587
2013	1537	567
2014 YTD	650	335

* Remember that the sales numbers represent “Closed” escrows. Since the average escrow is between 45 and 60 days, the decision to purchase the homes that closed in June was probably made in March to early April.

For more information about the Coachella Valley Real Estate market, Please call us at (760) 203-2621!
Source: DesertAreaMLS