February 2020 Hi Desert Real Estate Market Update

Love may be in the air, but real estate is on the minds of many in our Hi Desert communities. Below is my monthly market update on the mathematical conditions of our market. There are some interesting statistics and information in this report. Most notable are:

Inventory is way down. As of the date I did the research we were down to 378 active listings compared to 465 same time last year.

Closed escrows are up from same time last year by 25 sales (107 TY compared to 82 in 2019)

This is the best January closings in the last six years!

Only 53% of sales were under $200,000. More expensive homes are now selling.

For the month, there is over a 20% increase in average price in both Joshua Tree and Twentynine Palms.

An interesting statistic not included in my report. The Low Desert (Coachella Valley) currently has about 3.7 months of sales (MOS) ratio. This is the lowest it has been in the last five years. Months of sales ratio is how many months it would take at current sale volume to run out of inventory. We have been tracking between four and five months. This month we are at 3.5 months. Very close to the low desert numbers.

What does this mean? Inventory is low. Demand is high. Look for upward pressure on prices over the next several months.

I hope you have a great month. As always, if you or someone you know needs help or has questions about our local market, I would love the opportunity to help!

FEBRUARY 2020
MARKET UPDATE
Hi Desert Communities
By Bob Armstrong Real Estate Broker
(760) 221-2999, squabblefree.bob@outlook.com
7245 Joshua Lane, Suite B, Yucca Valley, CA 92284
DRE# 01275801

This monthly report is an attempt to provide you with the mathematical information about the current real estate market in the Hi Desert communities of Yucca Valley, Joshua Tree, Twentynine Palms, and surrounding areas. I do my best to keep my opinion out of the information. If you want my opinion, just ask! I also post market information on my Facebook Fan Page (www.facebook.com/desertrealestate). All information included on this Update is gathered from the California Regional Multiple Listing Service (CRMLS) which is the predominate service in the area. Numbers in parenthesis represent change from last month.

INVENTORY
At this writing (February 11, 2020) we have 378 (-17) residential homes actively for sale in our area ranging from a low price of $17,500 to a high of $4,450,000. There are 106 (+35) properties in “Active Under Contract” status (some major contingencies but in escrow). There are 93 (+03) properties in a Pending sale (waiting on escrow to close). Of the active listings, 127 in the Yucca Valley zip code of 92284 (-08).  82 in the Joshua Tree zip code of 92252 (-09) and 106 in Twentynine Palms 92277 (-02).

MONTHLY CLOSED ESCROW AND INVENTORY COMPARISON BY YEAR

Last month, in January, we closed escrow on 107 residential properties. In comparison, last year we closed escrow on 103 residential properties in our Hi Desert communities. Below are two, line graphs of inventory and closed escrow by month for the 2015, 2016, 2017, 2018, 2019, and 2020.

LAST MONTHS CLOSED ESCROW INFORMATION
Number of Closed Escrows:

Last month (January 2020) in our Hi Desert communities of Yucca Valley, Joshua Tree, and Twentynine Palms plus outlying areas we closed escrow on 107 homes (-14). 43% of the sold homes were in Yucca Valley, 17% were in Joshua Tree, and 29% were in Twentynine Palms, 11% were from the smaller communities that surround our larger ones.

CLOSED ESCROWS BY PRICE RANGE:
Of the 107 escrows closed in January, 12 were under $100,000 (-09). 14 were between $100k and $150k (-14). 31 were between $150k and $200k (-01). Combined 53% of home sales were below $200k. 37 homes sold between $200k and $300k (+13) last month. 14 homes sold over $300k (-02). The highest value home sold at $900,000 and is located on Carlsbad Ave. on the Mesa in Yucca Valley.

HOUSING STATISTICS
AVERAGE PRICE OF CLOSED ESCROWS:
In January, homes that closed escrow in Yucca Valley sold at an average price of $240,548
(+$15,114), Joshua Tree averaged $249,647 (+$52,712), Twentynine Palms averaged $160,026 (+$35,003).

PRICE PER SQUARE FOOT OF CLOSED ESCROWS:
In January, homes that closed escrow in Yucca Valley sold for $150.98 per square foot (+$6.81), Joshua Tree sold for $202.08 per square foot (+$42.57), Twentynine Palms sold for $132.69 per square foot (+$16.43). The most expensive home sold by square foot this month is in Joshua Tree.  This 1,674 square foot home sold for $415.17 per square foot, is on Cope Lane in Joshua Tree, and is on a five acre parcel.  The least expensive home sold was $29.75 per square foot and is located in Twentynine Palms on Morning Star.

Average Days on Market:
The average days on market for sold homes in Yucca Valley in January was 87 (-29), Joshua Tree was 71 (-21), Twentynine Palms was 111 (+20).

MARKET CONDITIONS

I am sharing with you the Altos Market Trend Report. This is a weekly report I subscribe to that can shed light on the health of our market. I will be using the same week of each month that I prepare my Monthly Market Report to help inform you of the trends in our market. The Market Action Index (MAI) answers the question “How’s the Market?” by measuring the current rate of sale versus the amount of the inventory. Index above 30 implies Seller’s Market conditions. Below 30, conditions favor the buyer. Watch for changes in MAI. If the MAI resumes its climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s zone, watch for downward pressure on prices.

YUCCA VALLEY:
This week the median list price for Yucca Valley, CA 92284 is $259,900 with the market action index hovering around 36. This is about the same as last month’s market action index of 36. Inventory has held steady at or around 118. The market remains in a relative stasis in terms of sales to inventory and prices have been relatively stable for a few weeks. However, inventory is sufficiently low to keep us in the Seller’s Market zone so watch changes in the MAI. If the market heats up, prices are likely to resume an upward climb.

JOSHUA TREE:

This week the median list price for Joshua Tree, CA 92252 is $284,900 with the market action index hovering around 33. This is less than last month’s market action index of 34. Inventory has held steady at or around 83. The market has been cooling over time and prices have recently flattened. Despite the consistent decrease in Market Action Index (MAI), we’re in a Seller’s Market (where significant demand leaves little inventory available). If the MAI begins to climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s zone, watch for downward pressure on prices.

TWENTYNINE PALMS

This week the median list price for Twentynine Palms, CA 92277 is $155,000 with the market action index hovering around 32. This is about the same as last month’s market action index of 32. Inventory has held steady at or around 102. Home sales continue to outstrip supply and the Market Action Index has been moving higher for several weeks. This is a Seller’s market so watch for upward pricing pressure in the near future if the trend continues.

If you would like to better understand the math and dynamics of our local market, text, email, or call and let’s discuss your questions and concerns. I can find a winning strategy for you in any market.

Sincerely,
Bob Armstrong
(760) 221-2999
DRE #01275801
♻️GREEN Real Estate Group
If you know of someone who would appreciate the level of service I provide, please call or text me with their name and phone number or email address. I’ll be happy to follow up and take great care of them.