Palm Springs home prices fall 6% to $1.1M, marking valley’s largest drop

According to the latest Greater Palm Springs Realtors (GPSR) Desert Housing Report, the median price for an average-sized detached home in Palm Springs fell 6% to $1.1 million compared to the year before, that’s the biggest percentage drop of all desert cities. Attached home prices decreased 7% to $412,000.

The median price of an average-sized detached home in the Coachella Valley last month was $635,000, down 2% compared to last year. Attached home prices were down 3% to $430,000.

Detached home prices increased in Indian Wells, Bermuda Dunes, La Quinta, and Rancho Mirage and fell in the rest of the valley. Attached home prices increased in just two valley cities, Indian Wells and Indio.

Palm Springs recorded 121 sales during the three-month period ending in August, on par with the year before. Valley-wide, sales are down about 33% below average.

The report measured the valley’s housing inventory divided by recent sales, and determined that the housing market is moving into a more balanced market, not favoring either buyers or sellers.

Palm Springs had the greatest number of homes on the market at the start of the month with 548, down from 609 homes last year. Valley-wide, inventory is down almost 13% year-over-year to 2,441 units.

Homes in Palm Springs are selling slightly faster than last year, lasting 56 days on the market compared to 62. 

This week, the Federal Reserve raised interest rates, the new range is now 3.75 to 4% and analysts say there could be further increases ahead. The benchmark rate is the basis for lenders to set rates, including mortgage rates.

---