March 2025 Hi-Desert Real Estate Market Update

Greetings Fans,

It sure feels like things are ramping up, but the numbers sure don’t show it! I write my updates in the early part of the month and send them by mid-month. Sometimes we can see changes taking place in just those few weeks that I try to address in this cover letter. After attending several community events in the last few weeks and talking to other agents, everyone confirmed it feels busier, but the numbers don’t show it. Maybe when the weather turns warm again, buyers will spring like wildflowers in the Park. Maybe!

One big issue that will have a lasting impact on our community is the change in the status of our beloved Joshua Tree. Around the pandemic, an environmental group filed with the State to change the Tree from protected to endangered. There was a lot of push back from communities and residents to leave the tree alone. The Department of Fish and Game handed the issue to the Govener who proposed a timeline to change the status. This became legislation. Fish and Wildlife has until June to formalize the “rules” for the Tree. As it sits now, you cannot disturb the ground within 50’ of a Tree. Even if the Tree is located on another parcel, you cannot touch the soil. This may not seem difficult but consider this. The State has to issue a permit. How quickly they can do this is yet to be seen but consider your neighbor has a failing leach field in the septic system. Now, instead of replacing it, you will have to apply to the State for a permit to disturb the soil. How long will you (and your neighbor) be willing to smell percolating septic leach? And how much additional cost are you willing to bear on top of the surprising cost of the new leach field? It is estimated, in its current form, that Hi Desert Water District will have over $17mil in permit fees for phase two of the sewer project! The issue is complex. Also, the State and Federal governments have done studies that show the Tree is not endangered and is adaptable to climate changes. Bottom line is this is all about money and generating an income source the State was missing out on. Please take the time to review for yourself this terrible legislation and make sure you contact your elected officials with your thoughts. You can find more here-https://wildlife.ca.gov/Conservation/Environmental-Review/WJT/Conservation-Plan

Highlights of the March 2025 Update include-

• Inventory is climbing rapidly. When I wrote the Update we had 744 active listings. As I write this email, we have 787! A lot of inventory has a downward push on price points.
• Closed escrows. As I said in the beginning of this email, it feels like it is getting busier, but the numbers don’t show it. We have closed seven escrows less than last year at this time. One number to watch is the Active Under Contract and Pending numbers. These are accepted contracts that are working through the closing process. In this Update we have 14 more homes under contract than last month. I would not say this is a significant amount to feel we are busier.
• 77% of closed escrows are under $400,000. Only 50% of our listings are priced below $400,000.
• Average prices continue to tick upward in Joshua Tree and Twentynine Palms but declined in Yucca Valley last month.
• Days on market are triple digit in JT and 29 but inline in Yucca.

I hope you have a wonderful spring season. Fingers crossed our market shows signs of growing by my next Update.

As always, if you have someone who needs help in our market, please share my information with them. I will take very good care of them and work hard to meet their needs.

Sincerely,

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