The most recent local housing report shows a slight decline in Palm Springs home prices during the month of June compared to last year, but maintained that the declines are not as large as homeowners and agents had feared.
The median price of a detached home in the Coachella Valley is $690,000, which is down about 1.4% compared to last year, according to the June report. Every city, save for Desert Hot Springs, had a price decline compared to last year.
In Palm Springs, the median price of an average-size detached home in June 2023 was $1.27 million. In June of 2022 that number was $1.4 million.
The 10% year-over-year decline in Palm Springs is similar to that reported the past several months, but remains well above where prices were prior to the start of the pandemic.
Overall, the valley is experiencing a “very small decline,” and continues to hold earlier price gains. The report added that homeowners’ concern over large price declines has “so far been misplaced.”
“We think most homeowners and agents are quite pleased with how prices have held up during this difficult interest rate period,” the report stated.
During the slower summer months, however, Real Estate professionals say they expect the region will see a slight downward pressure on home prices.
Coachella Valley inventory at the beginning of this month hovered at 1,741 units — about 100 fewer units than the previous month. Inventory has also remained effectively unchanged over the last eight months, with a slight decline.
“The primary reason inventory isn’t growing continues to be a low number of new listings,” the report explained. Inventory is expected to contract further during this summer.
Meanwhile, the median number of days in market is 40 days — four fewer than last month. The June report predicted that the number of days in market would continue to decrease, and won’t recover to the pre-pandemic average of 65 days due to dwindling inventory.