Palm Springs housing market ends 2024 with stable sales amid price adjustments
The average price for a detached home in Palm Springs decreased by 0.4% from December 2023, with the average home selling for $1.2 million. The median home price in the broader Coachella Valley was $665,000.
The Palm Springs housing market finished 2024 with stable home sales and slight price adjustments, according to the latest Desert Housing Report.
The average price for a detached home in Palm Springs decreased by 0.4% from December 2023, with the average home selling for $1.2 million. In contrast, the median home price in the broader Coachella Valley rose for the second time in eight months, reaching $665,000, which is $8,750 higher than the previous year. The report indicates that there is no current environment conducive to declining home prices.
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Palm Springs recorded 96 home sales over the three-month period ending in December, slightly down from 98 in the same period the previous year. The city stands second in total sales volume among Coachella Valley cities, following Palm Desert, with a dollar volume of $82 million in December, mirroring last year’s figures.
The housing inventory in Palm Springs grew to 623 units compared to 499 units a year prior. Despite this rise in inventory, homes are selling relatively quickly, with a median of 37 days on the market, the second shortest time in the valley.
Homes in Palm Springs are currently selling at an average discount of 3.2% from the list price, ranking among the highest discounts in the valley, alongside Rancho Mirage. The broader valley experienced a decrease in the median days homes spend on the market, down to 41 days, which the report suggests is positive for maintaining stable home prices since quick sales encourage holding listing prices firm.
The report highlights valley-wide inventory levels returning to pre-pandemic numbers, though sales remain 33% below the average, presenting a potential future supply-demand imbalance with inventory expected to rise through April. This condition may extend selling periods for higher-priced homes.
Notably, the Federal Reserve has begun lowering short-term interest rates; however, these reductions have not yet had a significant effect on fixed mortgage rates. The report anticipates that sales recovery may continue to be slow until there is a further decline in long-term interest rates.
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