Housing market shows increase in the Coachella Valley

Public Record, The, Jun 12, 1998

The first quarter sale record for houses in the Coachella Valley are the best since 1990. The first quarter saw 3,011 residential escrow closings, an increase of 474, or 18.7 percent, from the first quarter of 1997.

The increase was across the board in all four areas (Area 1-Palm Springs Cathedral City, Area 2-Palm Desert/Rancho Mirage/Indiana Wells/La Quinta, Area 3-Indio/Coachella/Eastward, Area 4-Desert Hot Springs/North Palm Springs) and for both resales and new sales.

New sales especially showed strong growth. There were 330 new home escrows closed in the first quarter of the year, compared to 234 last year, an increase of 41 percent.

Resales showed a more modest but still strong growth 16.4 percent. A total of 2,681 resale escrows closed in the first quarter, an increase of 371 from the first quarter of 1997.

All four Areas showed increases in both new and resale escrows. Area 4, including Desert Hot Springs and North Palm Springs, showed the largest percentage increase with a 34 percent growth in total closings and 27 percent in resales.

Area 2, which includes Palm Desert, Rancho Mirage, Indian Wells and La Quinta, led new home closings, with a total of 242, up 41 percent from the previous first quarter.

Area 2 also increased its market share in total home sales, going up from 47 percent to 50 percent. In 1996, its market share was only 43 percent.

The strong local housing market is reflected nationwide as well with a growth of 5.2 percent. With unemployment an its lowest level in 28 years, low interest rates, and "empty-nesters" relocating as the population ages and grown children strike off on their own, no slow down in the housing demand is expected.