What’s Happening in the Palm Springs Housing Market?
The Palm Springs housing market is seeing a noticeable shift this summer. According to the latest Desert Housing Report, the number of homes for sale has climbed significantly, while overall sales volume is beginning to cool off.
Fewer Homes Selling, More on the Market
Between April and June, 135 homes sold in Palm Springs, a slight decline from 149 during the same period last year. Despite the dip, Palm Springs still ranks second in sales volume across the Coachella Valley, right behind Palm Desert.
Inventory, on the other hand, is rising quickly. There were 754 homes on the market in June, making it the highest supply among all cities in the valley — and a jump from 625 homes last year. With more options available, buyers have a bit more breathing room than they did during recent years of intense competition.
Home Prices Hold Steady (Mostly)
Pricing trends have been mixed depending on the type of property. Detached single-family homes saw a slight dip of 3.1%, with average prices landing around $1.25M. Meanwhile, attached homes (like condos or townhomes) increased by 1.9%, averaging $450K.
Homes Taking Longer to Sell
On average, homes in Palm Springs are now sitting on the market for 52 days, up from 46 days last year. Sellers are also negotiating more, with homes closing at an average 4.1% below list price, compared to 3.1% last year.
What This Means for Buyers and Sellers
These shifts indicate a market that’s adjusting — not crashing. Inventory levels are high enough to offer choices, but not so high as to trigger a downturn. For buyers, this could be a great time to find the right property without bidding wars. For sellers, pricing strategically and presenting the home well will be key.
A Bigger Picture: Mortgage Rates Still Impacting Demand
National trends are playing a role, too. Realtor.com forecasts that mortgage rates will remain elevated through the end of 2025, averaging around 6.7%. Higher rates have cooled buyer demand in many areas — including here in the desert.