Palm Springs home prices down slightly compared to last year in latest report

Palm Springs home prices are slightly lower than last year and the city has the second-highest number of homes for sale in the Coachella Valley, according to the latest Desert Housing Report.

The median price of an average-sized detached home in the valley last month was $660,000, a decrease of less than 1% from the year before. Attached home prices decreased 3% year-over-year to $460,000. 

Three cities, Indian Wells, Bermuda Dunes, and La Quinta, saw an increase in detached home prices compared to the year before.

In Palm Springs, detached home prices fell 5% year-over-year to $1.13 million in December. Attached home prices fell 5% compared to the year before, with the average price at about $425,000.

Palm Springs saw the second-highest unit sales in the valley, with a three-month average of 113 homes sold, up from 97 compared to last year. At the end of December, Palm Springs also had the second-highest number of homes for sale in the valley with 644, up from 623 last year. Sales are down valley-wide about 24% compared to pre-pandemic norms.

“While inventory has recovered, because of low sales, supply is beginning to exceed demand,” the report notes. “This should not cause a problem for home prices unless it begins to extend average selling times.”

Homes in Palm Springs take an average of 43 days to sell, consistent with last year’s 42-day average around the same time. 

Analysts didn’t expect much from Wednesday’s Federal Reserve meeting, and that’s exactly what happened. The Fed held interest rates steady as expected, but two governors dissented, preferring a quarter-point cut. The Fed had implemented three reductions in the final months of 2025.

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