March 2026 Hi-Desert Real Estate Market Update
Greetings Fans,
Sometimes I feel like the Grim Reaper when I share my Market Updates. It sure seems like poor news has been with us for well over 50 months now. Frankly, at this moment, I do not see any significant change in the near future.
A couple of months ago I shared a study from the National Association of Realtors (NAR) that predicted if interest rates dropped at or below 6%, over 500 thousand buyers would return to the market. The rates dropped into that range in early February, but nothing changed locally (or nationally for that matter). Optimism was high early in the year that the spring market would be robust, but we are not seeing any early signs of that developing. One word to describe how our market remains: stalled!
For the first two months of the year, we have closed escrow on just 97 homes. A balanced market for our communities would be sales around 100 to 120 on a monthly average. We are below this with two months of sales.
As we watch fuel prices climb, at this writing regular gas is above $5 a gallon and predicted to go well above $6 a gallon, we will see the negative impact this will have on our real estate market. Any savings a person may find in a lower priced home in our area will be off-set by the high price of commuting to a job. And let’s face it, for the most part we do not offer good paying jobs in our communities. We do not have large employers. Instead, we have small businesses that are struggling with a declining tourism economy which will only be recessed more by high fuel prices.
Inventory is another struggle for our Hi-Desert market. At this writing, we have around 716 active listings. When I wrote the Update on March 2nd, we had 701. I expect we will see inventory rise above 800 by mid-April. High inventory generally equates to lower prices for buyers. At this writing, 41% of our current listings have already done a price reduction. If you are a seller, it is very important that you price your home correctly. Do not try to “test” the market with a higher price thinking you can always lower it. Once you fall off the radar and get buried along with the other 700 plus offerings, you will need a major price reduction to be noticed by potential buyers. Buyers, on the other hand, are kings. There is plenty to choose from with our large inventory. I expect buyers to offer lowball offers to test the sellers’ will. We will see how this plays out over the next few months.
Other notable highlights in this update include-
- Our most expensive home sold last month was just $600,000.
- The average price of a home dropped significantly in Yucca Valley and Twentynine Palms but rose slightly in Joshua Tree.
- Twentynine Palms had 43% of sales last month. Makes sense. With an average price of $215,000 I believe local buyers are focused on this community instead of the more expensive communities.
- Average days on the Multiple Listing Service (DAM) are 98 for Yucca Valley, 102 for Joshua Tree, and 117 for Twentynine Palms. This is the time it takes for a property to close escrow after it is listed. Industry average is below 60.
As always, we can find a winning plan to help you attain your goals whether you are a seller or buyer. If you know of anyone looking to buy or sell, please send them my way.
Sincerely,
Bob Armstrong
(760) 221-2999
DRE #01275801
GREEN Real Estate Group
Bob Armstrong
