Palm Springs home prices decline as inventory rises in August market report

The latest Desert Housing Report for August shows Palm Springs home prices declined while inventory levels increased and homes took longer to sell compared to the same period last year.

In Palm Springs, the median price of a detached home reached $1.19 million in August, representing a decline of almost 1% from the previous year. Attached homes averaged about $444,000, down 2% compared to last year.

The broader Coachella Valley saw the median price of a detached home reach $648,000, just a 0.1% decrease from the year before. Every city except Cathedral City and Indian Wells recorded lower median prices in August compared to the previous year.

Homes in the valley are taking about 60 days to sell, compared to roughly 48 days at the same time last year. In Palm Springs specifically, the median number of days on market is 58 days.

Inventory in Palm Springs increased by 19% compared to last year, with 609 homes for sale compared to 512 the year before. Valley-wide, inventory is up 25%.

The report’s analysis of the “months of sales” ratio found that supply is starting to exceed demand in almost all price brackets. Though prices haven’t yet been negatively affected, that could change if selling times continue to lengthen.

Detached homes in the valley sold at an average discount of 2.9% below asking price, compared to 2.3% below asking last year. The report noted that prices in the valley usually hit their seasonal low in autumn and their high in spring.

Meanwhile, mortgage rates have been declining as experts anticipate Federal Reserve interest rate cuts this week. The average 30-year fixed rate dropped to 6.38%, the lowest level in nearly a year.

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