March 2020 Hi Desert Real Estate Market Update

Greetings,

As the weather changes, many are chasing the green to find good real estate deals. Below is the current market conditions from a mathematical view for the Hi Desert communities. Nothing makes a real estate transaction better than having informed and educated Buyers and Sellers. It is my hope you gain some knowledge from the monthly Updates.

Last month, February, we saw record escrow closings (well, at least a record for as long as I have been providing these Updates!). In fact, January and February were well above past years for the same month. Other highlights include:

1. Inventory continues to be low. Currently, we are at about July 2017 levels. Almost 100 properties short of last year, same time!
2. Joshua Tree surged last month to represent 28% of all sales in the Morongo Basin. Twentynine Palms fell to 22% of sales. These number are flipped from normal.
3. In a big surprise, only 48% of sales were below $200,000. Since I have been preparing these Updates, we have been hovering above 60%. This is just one month but price points are increasing. If this holds, I will raise the bar to track sales under $250,000.
4. Higher priced homes had a big month. The biggest month since I started these Updates. We sold 30 homes last month that were above $300,000.
5. The average price of a home in Joshua Tree last month was knocking on $300,000!!
6. Joshua Tree surged above $200 per square foot to $226.76. Yucca Valley and Twentynine Palms decreased in price per square foot.
7. Last month, Joshua Tree was almost twice as expensive in price per square foot as Twentynine Palms.
8. Days on Market (DOM) increased in Yucca Valley and Twentynine Palms. Not surprisingly they decreased in Joshua Tree.

You can also find and share these Updates on my Blog, http://www.bobarmstrong.realtor/blog along with other information about our communities. I appreciate your time to read these updates and the time you take to share my information with others.

Have a great month. Hope you find yourself in the GREEN this month. 

Sincerely,

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

MARCH 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 (March 03, 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 February, we closed escrow on 115 residential properties. In comparison, last year we closed escrow on 99 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 (February 2020) in our Hi Desert communities of Yucca Valley, Joshua Tree, and Twentynine Palms plus outlying areas we closed escrow on 115 homes (+08). 39% of the sold homes were in Yucca Valley, 28% were in Joshua Tree, and 22% were in Twentynine Palms,
11% were from the smaller communities that surround our larger ones. 

CLOSED ESCROWS BY PRICE RANGE:
Of the 115 escrows closed in February, 6 were under $100,000 (-06). 19 were between $100k and $150k (+05). 30 were between $150k and $200k (-01). Combined 48% of home sales were below $200k. 30 homes sold between $200k and $300k (-07) last month. 30 homes sold over $300k (+16). The highest value home sold at $1,200,000 and is located on Via Rocosa. in the Highlands in Joshua Tree.

HOUSING STATISTICS
AVERAGE PRICE OF CLOSED ESCROWS:
In February, homes that closed escrow in Yucca Valley sold at an average price of $242,747
(+$2,199), Joshua Tree averaged $295,947 (+$46,300), Twentynine Palms averaged $160,026 (+$3,540).

PRICE PER SQUARE FOOT OF CLOSED ESCROWS:

In February, homes that closed escrow in Yucca Valley sold for $143.22 per square foot (-$7.76), Joshua Tree sold for $226.76 per square foot (+$24.68), Twentynine Palms sold for $118.72 per square foot (-$13.97). The most expensive home sold by square foot this month is in Joshua Tree.  This 1,439 square foot home sold for $833.91 per square foot, is on Via Rocosa in the Highlands area, and is on a total of 10 acres.  The least expensive home sold was $39.63 per square foot and is located in Twentynine Palms on Desert Heights Dr.

Average Days on Market:
The average days on market for sold homes in Yucca Valley in January was 100 (+13), Joshua Tree was 67 (-04), Twentynine Palms was 123 (+12).

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 $265,000 with the market action index hovering around 37. This is an increase over last month’s market action index of 36. Inventory has held steady at or around 123. In the last few weeks the market has achieved a relative stasis point in terms of sales to inventory. 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 $279,450 with the market action index hovering around 36. This is an increase over last month’s market action index of 33. Inventory has held steady at or around 72. 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.

TWENTYNINE PALMS

This week the median list price for Twentynine Palms, CA 92277 is $145,000 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 115. In the last few weeks the market has achieved a relative stasis point in terms of sales to inventory. However, inventory is sufficiently low to keep us in the Seller’s Market zone and prices have recently resumed upward pressure.

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.