December 2022 Hi Desert Real Estate Market Update

Merry Christmas Real Estate Fans,

For me it’s the Christmas season. For those of you that celebrate a different holiday this time of year…Happy Holidays!

You can hardly open the internet without seeing a variety of housing news. It does not matter if you look at the national picture, state picture, or the local market, the news varies with talking heads taking a variety of positions. I subscribe to the group that believes much of this will pass in the next six months. If our government allows it Time will tell but I believe many buyers don’t know what to believe so they are standing on the sidelines. No one wants to be considered a fool. I believe it would be foolish to stay on the side while your real desire is to move or be a homeowner. Let’s assume you buy now. Inventory is higher than it has been in several years. You have a lot to choose from. Some people must move, and some want to move. Now is the time to check their resolve and make low offers. I have a client who listed their home at $399k in the spring. We just received an offer from a home flip company for well under $200k. The clients are considering it because they must sell to move on with life. You never know the circumstances of a seller. If you really want to be a homeowner, I submit to you, now is the time. If you don’t get a property for the price you want, move on. In today’s market, being a buyer is the strong side of equation. Call me and let’s talk about strategy.  Once the buyers flood back into the market, prices will again rise. Make your move now.

The December Update has lots of meaty news. Clearly, we are in a downturn in our market. Sales have slowed and inventory has risen. At this writing, inventory is near 2015 levels. The last month we closed this few escrows is January 2016! Look for inventory to drop, maybe below 500 next month. Lots of homeowners’ listings expire on December 31^st.  Sellers will be shopping for a Realtor that can give them a true picture of the market and help them sell their home. I expect inventory to rise above our current number by mid-February. I expect the spring home buying market to be slower than the last couple of years, but I believe we are at or near bottom.

Highlights of this Update include-

• Inventory hovers around 650. I have made my comments on this above.
• I believe Twentynine Palms could surpass Yucca Valley in total percentage of sales next year. The considerably lower price points will be more attractive to buyers than Yucca Valley or Joshua Tree.
• Take some time to review the “What is Average” section of the Update. It is amazing to me how different averages are calculated in our communities.
• 76% of homes sold for under $400,000. It appears to me that our current buyers are locals. Maybe renters are seeing the opportunity to be a homeowner. In months past, this number was less than 40%.
• Price per square foot is still around replacement cost but has been dropping for the last several months.

I would like to wish you and your family a very Merry Christmas season. I am available any time if you, a friend, or family member have questions about our local market. Have a very Happy New Year celebration.

Sincerely,

Bob Armstrong
(760) 221-2999
DRE #01275801
GREEN Real Estate Group