Valley housing market shows signs of normalization; Indio home prices up 2%

*The number of homes for sale in Indio as of April 1 stood at 454, compared to 264 last year.*

Five years after the beginning of the pandemic in March 2020, the Coachella Valley’s housing market is finally showing signs of normalization.

The Desert Housing Report for last month reveals that the median price for an average-sized house in Indio is $655,000, up 2% compared to last year. The median price of a home valley-wide increased for the fifth straight month to $710,000.

Inventory valley-wide has significantly increased, with 3,667 units available as of April 1 — 1,271 more units than the same time last year. Inventory in Indio as of April 1 stood at 454, compared to 264 last year. The report notes that seasonal patterns suggest that inventory is near its peak.

Homes in Indio are selling about 1.6% below asking, compared to 1.8% last year, and homes are staying on the market about 48 days, which is comparable to last year.

Sales continue to gradually improve. As of March, sales are just 18.5% below normal. Indio has the fourth highest unit sales at 79, compared to 70 last year.

The report explained that while inventory has recovered to pre-pandemic levels, lower sales mean supply is beginning to exceed demand. “This should not cause a problem for home prices unless it begins to extend average selling times,” the report notes.

The wild swings of the housing market during the pandemic appear to have calmed down. In early 2021, sales were almost 60% above normal and then plunged to 35% below normal at the beginning of 2023. In June 2022, nearly 60% of homes were selling above list price compared to just 11.5% now, which is back to pre-pandemic levels.

The report acknowledges the chaotic economic atmosphere and how it could affect rates, stating, “The Federal Reserve Board has stopped lowering short-term rates until the effect of the administration’s new economic policies can be determined.” The 30-year mortgage rate dropped to its lowest point since October amid the chaos, but tariffs could increase the cost of new homes and economic uncertainty may convince potential buyers to stay out of the market.

Regarding the rental market, the average rent in Indio has increased from $1,921 per month in 2021 to $2,891 as of February, an estimated 50% increase according to Zillow. Year-over-year rent has increased on average about 10% in the city. The organization Lift to Rise provides a development map showing affordable housing projects in the city and their stages of development.