Here’s a breakdown of the current situation:
Market Conditions:
- Buyer’s Market: Palm Springs is currently considered a buyer’s market. This means there are more homes available for sale relative to the number of buyers, giving purchasers more negotiating power and potentially leading to lower prices and homes staying on the market longer. This is a shift from last year when Palm Springs was a seller’s market.
- Increasing Inventory: The number of homes for sale in Palm Springs has increased significantly. As of early April 2025, there were 3,667 homes for sale in the Greater Palm Springs area, which is the highest inventory level seen since before the pandemic. In March 2025, there were 160 homes for sale in Palm Springs, an 8.8% increase compared to February 2025.
- Decreasing Median Sold Price: The median sold price for homes in Palm Springs in March 2025 was $581,800, which is 9.9% lower than in March 2024.
- Slower Sales but Steady: While sales activity hasn’t significantly increased, it remains steady and is about the same as last year. However, it’s still below the historical average for this time of year.
- Increased Days on Market: Homes in Palm Springs had an average listing age of 44 days in March 2025, which is down 24.4% compared to the previous year. However, other data indicates a median of around 50-59 days on the market.
- Price Discounts: Homes in Palm Springs are selling at an average discount of 4.1% compared to the list price.
Price Trends: - Overall Decrease: The median listing home price in Palm Springs in March 2025 was $799,000, trending down 3.6% year-over-year.
- Varying by Property Type and Location: Price changes vary significantly based on the number of bedrooms and the specific city within the Greater Palm Springs area. For example, in March 2025, the median sold price for a 3-bedroom home in Palm Springs decreased by 12.4% year-over-year, while 1-bedroom homes saw a 1.9% increase. Indian Wells experienced an 18.6% price jump for the average-sized detached home, while Palm Springs saw a 4.2% decline.
Future Outlook: - Stabilization Expected: The Coachella Valley real estate market is expected to remain relatively stable for the rest of 2025.
- Moderate Price Increases Possible: Home prices are anticipated to see moderate increases, particularly in high-demand areas.
- Potential Shift Towards Seller’s Market: Some projections suggest that tightening inventory could potentially push the market towards a seller’s advantage by 2026.
Key Considerations for Buyers: - More Negotiation Power: The current buyer’s market provides an opportunity to negotiate prices.
- Increased Inventory: Buyers have more options to choose from.
- Lock in Rates: With mortgage rates recently dipping, it might be a favorable time to secure a good rate.
Key Considerations for Sellers: - Realistic Pricing is Crucial: Overpriced homes are likely to sit on the market longer.
- Condition Matters: Buyers are selective and often look for homes in good condition.
- Flexibility in Negotiations: Being open to negotiation is essential in the current market.
In conclusion, while the Palm Springs real estate market is not experiencing the rapid price increases seen in recent years, it presents a window of opportunity for buyers due to increased inventory and price adjustments. Sellers need to be strategic with pricing and presentation to attract buyers in this evolving market.
