Palm Springs housing market shifts as sales drop while inventory climbs

Palm Springs recorded a decline in home sales during the three-month period ending in June, while housing inventory reached its highest level in multiple years, according to the latest Desert Housing Report.

The city registered 135 home sales during the reporting period, down from 149 sales during the same timeframe last year. Palm Springs maintained its ranking as the second-highest sales volume in the Coachella Valley, behind only Palm Desert.

Home prices showed mixed results across property types. The average price for detached homes fell 3.1 percent compared to last year, reaching approximately $1,247,000, while attached homes increased 1.9 percent to about $450,000.

Housing inventory in Palm Springs climbed to 754 units, up from 625 units last year. The current inventory represents the highest level among all cities in the Coachella Valley.

The market dynamics indicate a supply-heavy environment, with Palm Springs showing a “months of sales” ratio of 5.6 months, the highest in the region and well above the 4.2 months recorded last year. This metric measures the time required to sell all available inventory at current sales rates.

Properties are remaining on the market longer, with the median days increasing to 52 days from 46 days in the previous year. Homes are selling at an average discount of 4.1 percent below list price, compared to a 3.1 percent discount last year.

Market competition appears to have eased, with 11 percent of homes valley-wide selling above list price in June, down from 15 percent last year.

The local market trends align with national patterns affecting home sales. According to the report, realtor.com attributes declining sales nationwide to high mortgage rates, stating, “The revised forecast predicts 30-year mortgage rates will remain higher than originally projected, averaging 6.7% across 2025 and ending the year at around 6.4%.”

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