September 2024 Hi Desert Real Estate Market Update

Greetings Real Estate Fans,

Whew!! Looks like summer is about to leave us. Thank goodness. I am a sun guy but enough is enough! I am ready for fall temperatures.

As for our local real estate market, we melted in the heat. Last month we closed escrow on just 73 homes. At this pace we will not close over 1,000 homes in our communities for the year. This is a very poor showing for us. My opinion? We cannot rely on tourism to drive our economy. We need to produce real jobs to have a consistent real estate market. Restaurant and retail workers cannot afford a $500,000 plus home. We may get help from our neighbors in Desert Hot Springs. They are adding several warehouses to their inventory. This could create distribution jobs for people living here. Watch our neighbor. They upgraded their management with a Hi Desert local, Frank Luckino, as their City Manager. If Frank can lead them the same way he led Twentynine Palms, we may all be able to ride the rising tide. Time will tell.

I subscribe to a popular thought trend in real estate. The belief is that buyers have been sidelined by high interest rates. There is pent up demand. The belief is that once interest rates start to decline, buyers will rush back into the market with confidence that we have crested the curve, and rates will continue to decline. The mindset is buy today before prices continue to go up and refinance as the rates go lower. It appears the Feds will lower the rate later this month. As I have noted in the past, this does not directly affect rates, but it is believed that Treasury Notes will follow, which does directly affect mortgage rates. The October Update may show signs of recovery for us. More next month.

This month’s Update highlights include-

• Inventory has dropped because sellers have become frustrated and removed their homes from the active market. I have homes listed that have never been shown, after months of marketing. It is a popular move to take your home off the market for 90 days to let the Days on Market counter reset.
• As I mentioned above, only 73 closing last month in our marketing area.
• A first in several years. Yucca Valley is only $500 behind Joshua Tree in average price. In another first, Yucca Valley cost more than Joshua Tree in cost per square foot.
• Twentynine Palms is just $2 behind Joshua Tree in price per square foot. Not long ago, they were half.
• 77% of sold homes were below $400,000 while 47% of our listings are over this price point.

For me, I am really looking forward to the Fall season. Cooler weather and football!! Enjoy your September. As always, if you have a family member or friend that needs help in our difficult market, please have them contact me. We can find a solution to meet their goals.

Sincerely,

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