The Current High Desert Real Estate Market
2017 was a strong year for the real estate market throughout California, specifically in Palm Springs and the Coachella valley. But with 2018 now in full swing, market predictions are forecasting Joshua Tree and Yucca Valley as the desert’s hottest markets. Especially when it comes to the purchase of secondary homes and vacation rentals. Let’s take a look at the High Desert real estate market forecast.
As we saw in the last 6 months of 2017, the high demand and low inventory for housing continues to fuel the market. Along with a booming economy and historically low interest rates, buyers continue to flood the market looking to invest and sellers are at an advantage to win big as well. Especially in Joshua Tree and its surrounding desert cities.
The current market throughout both Joshua Tree and Yucca Valley looks something like this according to the most recent Trulia reports for the beginning of 2018:
Median home sales in Joshua Tree have seen a 15 percent year over year increase with the average price per square foot now at $135 (up from $115)
Median home sales in Yucca Valley have seen a 17 percent year over year increase with the average price per square foot now at $123 (up from $109)
2nd Home and Vacation Rental Sales in the Valley
The low inventory and high demand for housing throughout Los Angeles is pushing more 2nd home and vacation rental buyers to the Yucca Valley region. With coastal economies seeing a stabilized increase, more Los Angeles homeowners are looking to the increasingly popular areas of Joshua Tree, Yucca and 29 Palms as an up and coming, yet still undiscovered hideaway.
With Joshua Tree gaining more and more mainstream popularity, this seemingly undeveloped area is actually making a bigger impact on the real estate market throughout the Valley than most people have realized. Home prices in Joshua Tree alone jumped 30 percent last year. This Mojave getaway today is a haven for millennials coming out of Los Angeles county who are looking for a break from the city’s frantic lifestyle.
In Comparison to the Entire California Real Estate Market
Overall, the High Desert real estate market is on trend with the rest of the state. The median price of homes throughout California continues to rise as demand remains high and inventory is steadily low. The continued supply constraints across all price ranges had a slight effect on sales at the end of 2017, specifically in Southern California. But, the statewide market is forecasted to bounce back by mid-July where real estate experts are predicting the highest increase of listings will occur this year.
As far as affordability is concerned, Joshua Tree and the surrounding desert cities still have the majority of Southern California beat. Especially when compared with Los Angeles and Orange County. Although median home prices have a significant similar year over year increase when looking at each region individually, when compared with larger markets the affordability index favors both Yucca and Joshua Tree.
Buying and Selling in the High Desert
If you’re thinking about investing in the High Desert real estate market, don’t wait until the end of the year to buy. With interest rates predicted to hover around 4 percent for the first part of the year, supply increasing daily and market popularity within these two areas rising, now’s the time to invest. Whether you’re interested in buying a primary residence, or a secondary home, our team of professional real estate agents can help you with all your buying and selling needs.
We’ll work with you to properly price, list and market your home to the right audience if you’re looking to sell, and we’ll help you find the perfect home in the area that fits within your budget if you’re looking to buy. Visit our website to view a complete list of our qualified agents or begin your house hunt with our online search today.