Palm Springs home prices fall while sales pace quickens, new report shows
The average detached home price dropped 7.6% from a year ago even as unit sales and dollar volume rose, according to the Greater Palm Springs Realtors Desert Housing Report.
Palm Springs home prices declined year-over-year even as more properties changed hands and sold faster than the regional average, according to the latest Desert Housing Report from Greater Palm Springs Realtors.
The average-size detached home in the city sold for $1,164,827 in May, down 7.6% from $1,261,065 a year earlier. That marked the steepest year-over-year price drop among Coachella Valley cities for that category of home.
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Attached homes held their value better. The average-size attached home sold for $450,980 in May, a decline of just 0.6% from the prior year. Both detached and attached home prices in Palm Springs remain below the peaks reached in 2022, when they stood at $1,417,969 and $480,000, respectively.
Even with lower prices, buying activity increased. Palm Springs recorded 157 unit sales in the three-month average ending in May, up from 144 during the same period a year ago. That total ranked second in the valley, trailing only Palm Desert’s 178 sales.
Dollar sales followed a similar pattern, climbing to approximately $149 million from about $132 million a year earlier. The figure placed Palm Springs second valleywide in dollar sales, behind La Quinta.
The number of homes on the market also shrank. As of June 1, 2026, 746 homes were listed for sale in Palm Springs, down from 835 a year prior — an 11% reduction. The city’s months-of-sales ratio, a gauge of how long it would take to sell off current inventory at the present pace, improved to 4.7 months from 5.8 months a year ago.
Homes in Palm Springs are also moving faster than elsewhere in the valley. The median time a home spent on the market was 43 days, down from 51 days a year earlier and below the regional median of 49 days. Detached homes sold at an average of 3.3% below list price, an improvement from the 4% discount recorded the previous year.
The report noted that sales across the Coachella Valley overall remain 19.3% below historical norms. It also pointed to the Federal Reserve’s decision to pause short-term interest rate reductions while officials assess the impact of new federal economic policies, a factor the report said could continue to influence buyer activity in the months ahead.
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