Palm Springs Homes Sell Quickly as Buyer Market Emerges

Summary

Palm Springs recorded the fastest home sales and a lower inventory as the market shifts to favor buyers.

Why this matters

Understanding housing trends is crucial for prospective buyers and sellers, as it informs timing and pricing strategies in the evolving market.

The latest Desert Housing Report indicates a shift to a buyer’s market, although inventory in Palm Springs saw a slight year-over-year decrease. Palm Springs recorded the lowest average selling time in the valley at 42 days. Last month, the Coachella Valley’s median price for detached homes was $675,000, a 3% drop from January 2025. Attached home prices also fell 2% to $495,000. In Palm Springs, detached home prices fell 2% to $1.2 million, while attached home prices decreased over 6% to $435,000.

Indian Wells, La Quinta, and Bermuda Dunes experienced increases in detached home prices compared to the previous year. Palm Springs had 110 sales in the three months ending in January, a slight increase from the year before, making it second only to Palm Desert in total sales in the valley. Homes were selling about 3% below list price, a smaller discount than the 3.8% seen last year.

Across the valley, homes are generally selling below list price, with Bermuda Dunes experiencing the highest average discount at 5.2%, and Desert Hot Springs the lowest at 1.6%. Palm Springs listed 709 homes for sale at the end of January, down from 754 the previous year. Valleywide, there was a 3% increase in homes on the market, totaling 3,488 at the beginning of the month.

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