Home prices lower this year compared to 2024; all eyes on next month’s Federal Reserve meetings
Last month, Palm Springs saw slight price declines with homes taking longer to sell and selling for a bigger discount, plus higher unit sales and an increase in inventory.
The latest Desert Housing Report for October 2025 reveals a slight drop in prices for homes in Palm Springs, in line with a valley-wide trend.
Driving the news: The median price of an average-sized detached home in Palm Springs is $1.08 million, down 4% from last year’s median price of $1.13 million. For an attached home in Palm Springs, the median price is $415,000, down 5% from last year. Only two valley cities – Cathedral City and Palm Desert – saw higher prices this year compared to last.
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- Valley-wide, the median price of a detached home is down 1.6% year-over-year to $625,000. Attached home prices decreased 2.2% overall to $420,000.
Context: Sales valley-wide are below average by about 28% compared to pre-pandemic norms. Palm Springs had the highest unit sales at 118 units, up from 95 in October 2024.
By the numbers: Valley-wide, inventory at the start of this month was 3,233 units, a 15% increase compared to last year. Palm Springs started the month with 710 homes for sale, the most in the valley.
What they’re saying: “Inventory has been improving, and current numbers are now comparable to inventory before the pandemic,” the report notes. “The seasonal pattern shows a high inventory at the turn of the year and low inventory in late Summer.”
- The report worries that the housing market is becoming supply-heavy.
What else: It’s taking homes in Palm Springs an average of 64 days to sell, 10 days longer than last year. That’s mostly in line with other valley cities who are all experiencing more days on the market.
- Homes in Palm Springs are selling for about 3.4% below list price, compared to 3% last year.
Bottom line: Add all that up and here’s what we’re looking at – A slight price decline with homes taking longer to sell and selling for a bigger discount, plus higher unit sales and an increase in inventory.
What to watch for: Market observers note that further developments will depend on mortgage rate movements and broader economic conditions. All eyes are on the Federal Reserve’s meetings on Dec. 9 and 10 where hopes of a rate cut are diminishing.
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