February 2023 Hi Desert Real Estate Market Update

Greetings Real Estate Fans,

Well, the first month of the year is finished and we are still in the same place as last month. We have seen some changes that are contrary to the state and national trends. Our inventory is up almost 200% while nationwide it is closer to 10%. For the last four months, the majority of sales have been in Twentynine Palms, not Yucca Valley. Buyers are purchasing less expensive homes. Over 80% of homes sold in this Update are below $400,000.

The weather has been cold and in some cases, wet! This is not prime home buying weather. Many of the “experts” are predicting an explosion of flowers this spring. If this happens, we should see a return to short-term rentals and, I would expect, a surge in buyers.

Interest rates are floating around 6.25% to 6.50%. Buyers are uncomfortable with this but no one sees it going back down. In many cases, sellers need to sell, and buyers need to buy. Jobs, retirement, and disabilities contribute to reasons a person buys or sells. Life moves forward and so will our real estate sales. The big question is when will the buyers return? I expect spring will dictate the mood for the balance of the year.

Highlights of this Update include-

Inventory is hovering around 550. In December we had over 650. I expect to see a surge in listings next month.

Our most expensive home on the market is priced at a point never seen here before. The “Invisible House” in Joshua Tree is marketed at $18,000,000! This is a glass framed home that is a long rectangle with an interior pool on about 60 acres.

Last month we closed escrow on 77 homes. Last year, in the same month, 223!

As you would expect, Days on Market (DOM) has expanded to over 100 in Yucca and Joshua Tree. Twentynine is still in the 80’s.

As always, if you know of someone with questions on our local real estate market, please give them my number or email. I would enjoy the opportunity to help them meet their goals.


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