July Hi Desert Real Estate Market Update
Hot Greetings Fans,
WOW!! I am a 44 year resident of our Hi Desert. This is by far the hottest I have ever experienced living here.
For years, I would tell new residents you could count on your fingers how many times we break 100°. In addition, I would explain that every night it cools down into the 60°s. No longer! According to my weather app, we will experience temperatures in the low 100°s at least until July 24th!
The weather may be hot, but our real estate market is January cold. June and July closings are usually our highest. Not this year. 82 homes closed escrow in June. This is down from 112 in 2023 which was considered very low. At this point, we are on track to close under 1,000 homes this year. What a dramatic turnaround from just three years ago when we closed 2066 homes (2021).
There could be hope in front of us. This week, the Fed indicated they may start pulling back on interest rates. To be clear, the Fed rate does not have any bearing on mortgage rates. Mortgage rates are more based on the 10-year Treasury note (T bills). BUT…As the Fed adjusts, so do the Treasury notes. It is the majority belief, nationwide, that once the Feds signal a reduction, buyers will flow back into the market because they will feel that they can buy now and hopefully get an even lower rate in a year or two and refinance. I subscribe to this thought process. If correct, we should see an uptick in sales in the Fall (assuming the Feds actually do pull back).
I say this all the time, but it is worth repeating. We can find a winning strategy for buyers and sellers even in a slow market like this. My knowledge and experience can help find winning results. Let me know if you, a friend, or a family member needs help.
Other interesting notes from this month’s Update include:
- Seventy-six percent of homes sold were under $400,000.
- This last month, we bought smaller homes. The average was around 1,250 square feet. This makes sense considering 76% were under $400k. As an example, the average home that closed last month in Yucca Valley was 1,325 square feet on a 1.24-acre lot with two bedrooms and two baths.
- Twentynine Palms led our communities with a whopping 42% of the sales. Low priced homes (under $400,000) sell quickly. The average Days on Market (DOM) in Yucca Valley last month was 47.
Stay cool fans. September is just seven weeks away. As always, if you, a family member, or a friend need answers to our local real estate market, please give me a call.
Sincerely,
Bob Armstrong
(760) 221-2999
DRE #01275801
GREEN Real Estate Group
