Palm Springs housing inventory surges amid cooling market

The Palm Springs housing market continues to cool, with declining prices and slower sales as part of a broader slowdown in the Coachella Valley region.

According to the August 2024 Desert Housing Report, the median price of detached homes in Palm Springs has dropped 6.1% compared to last year, now standing at $1,198,338. Attached homes, however, have seen a slight increase, with the median price rising 2.5% year-over-year to $453,900.

Sales volume in Palm Springs has also declined, with an average of 103 units sold per month, down from 131 units the previous year. This drop has impacted total dollar sales, which are down by 28%.

The inventory of homes in Palm Springs has risen to 548 units, up from 383 units a year ago. This increase in inventory has resulted in a “months of sales” ratio of 5.0 months, the highest in the region, indicating a market leaning toward buyers.

Homes in the city are taking longer to sell, with the median time on market increasing to 48days from 47 days last year. Buyers are also seeing larger discounts, with detached homes selling at an average discount of 3.4%, up from 1.5% last year.

The trends in Palm Springs reflect the broader Coachella Valley market, where the median price of detached homes has declined to $653,726, slightly below last year’s price. The three-month average sales across the Valley have dropped to 578 units per month, compared to 629 units a year ago.

“Sales this month are 29.7% below normal and have been declining over the last four months,” the report states. “It is hoped that a planned drop in interest rates will encourage more buyers.”

“While inventory has improved, low sales numbers keep the supply-demand balance relatively stable,” the report notes.

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