January 2024 Hi-Desert Real Estate Market Update

Happy New Year Fans,

2023 will go down as one of the slowest years for real estate sales in our Hi Desert communities. I have been offering these Updates since 2013. Last year’s sales were on par with sales in 2013-2015. Around 1,100 sales in those three years. Last year we closed 1,123 homes in our communities. One would consider this a major slowdown from the peak in 2022 of 2,066 sales.

Unlike national averages, prices in all our communities dropped. 6.75% in Yucca Valley. 13.60% in Joshua Tree and 7.50% in Twentynine Palms.

Yucca Valley and Joshua Tree saw the average lot size increase while Twentynine Palms saw the lot size decrease.

2023 saw 11 homes sell for over $1,000,000. There are currently 37 homes for sale over one million.

71% of homes sold in 2023 were under $400,000.

All other statistical information included in my Updates declined in 2023.

Looking forward to our sales this year, I think we will see stronger sales. Maybe as high as 1,600 homes. Inventory is strong. The last two years, inventory dropped dramatically on the new year and then slowly built back up by March. This year, inventory started to drop at year’s end but surged back up to 577 as of
today.

In addition, interest rates are starting the slow process back down. Last week, mortgage rates were as low as 6.75%. Today, they are back around 7%. With dropping interest rates it is believed that buyers will be willing to purchase because they believe rates will continue to drop. They can buy today and refinance in the next two years. We should see this increase by mid-spring.

Last month’s sales were typical Hi Desert sales. Our highest selling home was at $1,725,000 while our lowest selling home sold for $28,000. Where else can your find this degree of separation?

Enjoy the Update. I appreciate the opportunity to provide you with this information. As always, if you know someone who needs help with our local real estate, please give them my contact information.