November 2023 Hi Desert Real Estate Market Update

Happy November Fans,

Attached you will find this month’s Hi Desert Real Estate Market Update. No big surprises but a couple of noteworthy items are included.

As I mentioned last month, our market is tracking along like 2015’s market. In 2015 we closed escrow on 1,158 homes. We are currently tracking to close around 1,100 this year. The more interesting statistic is that in 2015 the average price of a home in Yucca Valley was $174,000 ($418,000 in this report). $152,000 in Joshua Tree ($437,000 in this report). In Twentynine Palms the average in 2015 was 100,000 ($266,000 in this report). Investing in Hi Desert Real estate over the last 8 years has been better than most other investment opportunities. If we start comparing rent rates, we see rents have almost tripled since 2015 in our communities. Clearly owning real estate is a much better investment than renting.

I also wanted to address the common thread throughout our market. This is my opinion, but I think I am spot on. THE SINGULAR REASON A PROPERTY DOES NOT SELL IS PRICE. Read that again. Much of our market is overpriced for today’s buyers. Our current buyers are more local. They can’t afford the inflated cost of our real estate. Many were kept out of the market during the boom of 2021. A $400,000 home today, using FHA financing would cost a homeowner approximately $3,500 monthly! They can rent the same type of home for around $2,000 to $2200 monthly. It just does not pen out for many in our community. We can, however, attract buyers from other areas, like the low desert, where they can live here for less than in their local market and commute to work. Homes that are priced right can sell quickly today, or in any market.

Some highlights of this month’s Update include-

• Inventory is back around 600 homes for sale. At today’s sales rate, we have approximately seven plus months of inventory. Six months is considered balanced. At this time, I believe we have changed to a buyers’ market after years of being in a sellers’ market.

• We closed escrow on 82 homes last month. Not a lot to expand on with this low amount. Consider this tidbit, last month only 7 homes in Joshua Tree closed escrow (today we have over 150 for sale). Yucca Valley was the lead dog with 43 closings.

• The average price of a home dropped in Yucca Valley and Joshua Tree. Twentynine Palms was the only gaining community of the three.

• 67% of sold homes were under $400,000. This has been a trend now for over three months.

I trust you will have a fantastic Thanksgiving celebration. Please remember, if you know of anyone who needs help in today’s market, please have them contact me. I would be delighted to help.


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