From 1990-2001, Desert Hot Springs was a sleepy housing market. But what a difference five years can make!
In 2002, 60 new homes were sold, up from 13 the prior year. The number more than doubled to 153 in 2003 as the city’s available land and low prices began to catch the attention of developers. Volume soared to a record of 558 in 2004 (Exhibit 29) and roared to 949 in 2005.
More telling, in 2006, tract maps have been approved for 11,000 new homes.
In years past, Desert Hot Springs’s existing home sales have fluctuated in the 300-400 units range. Since 2002 however, volume has accelerated -- reaching a new record of 790 sales in 2004 and 699 in 2005. Homes in Desert Hot Springs are becoming an affordable alternative to the urban Inland Empire.
A Great Buy in So Cal
Desert Hot Springs’s new homes are very reasonably priced for the Coachella Valley. The median new home price in Desert Hot Springs was $198,273 in 2004, up $45,378 or 29.7% from $152,895 in 2003. By the second quarter of 2006, as developers began seriously working in the community (Exhibit 33), prices increased to $341,827 -- the lowest of any valley city.
New homes in Desert Hot Springs are also a bargain by Southern California’s standards. Its 2005 median price was well below those in each county: San Bernardino ($335,000), Riverside ($413,000), Los Angeles ($454,250), San Diego ($442,500) and Orange ($741,250).
Desert Hot Springs’s existing homes are likewise very reasonably priced by Coachella Valley and Southern California’s standards. In 2nd quarter of 2005, its $240,000 median price was the valley’s least expensive.
Desert Hot Springs is one of the Southland’s most affordable markets with a median existing home price far below those of Orange ($650,000), San Diego ($550,000), Los Angeles ($485,000), Riverside ($370,000) and San Bernardino ($310,000) counties.