October Desert Housing Report reveals mixed signals for Palm Springs real estate
Inventory rises but sales slow, as city’s market reflects regional trends of price decreases and cautious buyers.
The latest Desert Housing Report for October 2024 presents a mixed view of the Palm Springs housing market, reflecting broader regional trends of decreasing home prices and sales, despite a slight improvement in inventory levels.
The Coachella Valley saw a decrease in the median price of detached homes, with Palm Springs experiencing a notable 8.7% year-over-year decline, bringing the average size home price down to approximately $1.13 million. This trend is part of a six-month decrease across the region, with the overall median price for detached homes in the Coachella Valley falling to $634,990.
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Palm Springs recorded 91 sales over the past three months, slightly down from the previous year, contributing to a regional sales average that remains 34.2% below historical norms. The city still maintains robust activity compared to most neighboring areas, only surpassed by Palm Desert.
As of Nov. 1, Coachella Valley’s inventory was 2,824 units, a significant increase from the previous year but still below pre-pandemic levels. Palm Springs itself saw an increase in available homes — 652 were available, compared to 543 on Nov. 1 last year — suggesting a shift towards greater supply that could influence future pricing.
Homes in Palm Springs are spending an average of 46 days on the market, aligning with regional trends but showing a decrease from last year’s faster sales times. This slowdown reflects a market adjusting to economic pressures and buyer caution.
The balance of supply and demand in Palm Springs indicates a market adjusting to current economic conditions, the report states, with potential future impacts from national economic policies, especially mortgage rates, likely to influence the market’s trajectory into 2025.
Market observers note that while challenges persist, the stabilization of inventory levels could play a crucial role in the market’s performance in the upcoming months.
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