Now if you have been paying attention to the Coachella Valley something peculiar has been happening, it is explainable but it exemplifies a larger problem in our current real estate market. Today there are approximately 650 active properties on the market as of February 2022. Around this same time last year, there were over 2,000 active properties on the market. Now to make it clear the typical inventory of the Coachella Valley is usually somewhere between 4-5,000 units. Currently this is a clear identifier demand is extremely high, but how long can that last as supply remains so low.
As interest rates continue to rise there is going to be a decrease in buyer demand, and we can already see that as the average days on market increases. This past year we saw houses being sold within hours of being posted on the MLS, multiple bids above asking price, and the sheer force of movement that has filled up the valley with transplants and former city-slickers.
The lack of inventory can be an issue for buyers that need to compromise on their dream home because it's just not for sale right now. The Coachella Valley has erupted into a competitive market, but what does that mean for you?
Buyer's with a strict budget and looking for affordable options are going to struggle through this market, because of the inflated pricing. That doesn't mean you shouldn't keep looking. Now is the time to look for fixer-uppers and investment properties, but make sure you are ready to buy. Due to the high competition, if you come unprepared to an open house or new listing you will lose out on that property. Remember, there are a lot of buyers still ready to go overprice with cash offers. So, if you want to put your best foot forward, then have all your paperwork ready and your loan already planned.
If you have ever thought of selling, now is the time. Not just for primary homeowners but for investors as well. If your investment property is not returning at the rate you expected, now is the time to make the transition. Recover any losses and mark your profits today. Or use this time to make renovations and upgrade your current listing to exceed market expectations. For homeowners that have made upgrades; a renovated bathroom, cleaned up backyard, kitchen remodel, or even just new floors or appliances can make all the difference. Set yourself up for success by investing in yourself, but as any investor knows the money isn't real until you sell.
Finding the right time to sell is incredible difficult, too early and you lose out on unrealized gains. Too late and the price might fall right back to where you bought in at! So, how do you know that now is the right time? If prices are rising doesn't that mean they will continue to rise? Well, no. Ask any market expert, economist, or professional investor and they will tell you that no investment is 100% safe. And if they do , run! As tensions rise between international powers, the pandemic begins to wind down, and struggles with supply chains increase shortages of necessary commodities it's hard to say how what the future will be, so we try to focus on what right now means.
Right now, sellers are by far in the driver seat. Though because new construction has slowed down, we are seeing nervous sellers who don't have anywhere to go once they sell their home. It is important to consult with an agent and get your next steps figured out before you sell your home. Do the research, learn as much as you can about your home and the community it's in. If you are curious what your home is worth, be sure to check out My Website! Get a free quote today, and decide if selling is the right choice for you!
For more questions on the current market or how you should proceed feel free to contact me!
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