Palm Springs, CA
Housing Market
Palm Springs' housing market is dynamic, with home prices and demand constantly shifting. Houzeo's housing market report monitors these fluctuations, providing real-time insights into Palm Springs' supply and demand trends. Our report equips you with all the information you need to make well-informed decisions.
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Buy or SellPalm Springs Housing Market Overview
Palm Springs offers a blend of mid-century properties, upscale desert estates, and charming single-family homes, which cater to a variety of tastes and budgets. However, the Palm Springs real estate market has seen some cooling in recent months. The median home price has dropped by 20% year-over-year to $680,000. Homes in Palm Springs now typically remain on the market for as long as 83 days, an 8-day increase from last year. This extended market time suggests that demand has softened slightly, likely due to changes in buyer activity and market conditions.
However, Palm Springs continues to be a sought-after destination, known for its warm climate, scenic desert landscapes, and vibrant cultural scene. The sales volume is more or less stable compared to the previous year, with 137 homes sold this month. This indicates that while the market has cooled, it remains a hub for both full-time residents and seasonal buyers. Sellers looking to capitalize on Palm Springs’ appeal can price their homes realistically. You can also offer concessions to speed up the sale.
However, Palm Springs continues to be a sought-after destination, known for its warm climate, scenic desert landscapes, and vibrant cultural scene. The sales volume is more or less stable compared to the previous year, with 137 homes sold this month. This indicates that while the market has cooled, it remains a hub for both full-time residents and seasonal buyers. Sellers looking to capitalize on Palm Springs’ appeal can price their homes realistically. You can also offer concessions to speed up the sale.
Median Sale Price
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Palm Springs Housing Supply
Palm Springs is an attractive market for real estate investors, thanks to its stunning landscape, resort-style living, and consistent demand for vacation homes. The number of homes for sale in Palm Springs, CA has fallen to 669, marking an 8% decrease compared to last year. However, 250 new listings have entered the market. The current housing supply stands at 4.8 months, down by 0.5 months from the previous year. This suggests a relatively stable market, less competitive than it was in 2024.
Palm Springs’ housing supply is also influenced by seasonal trends. During spring and summer, the market typically sees an influx of listings, as buyers and sellers aim to close before fall arrives. The city’s distinct mix of desert charm, luxury living, and cultural attractions drive continued demand. Popular neighborhoods like Downtown Palm Springs, Movie Colony, and the Escena Golf Club offer a variety of inventory options. Palm Springs’ scenic beauty and proximity to major airports further enhance its appeal.
Palm Springs’ housing supply is also influenced by seasonal trends. During spring and summer, the market typically sees an influx of listings, as buyers and sellers aim to close before fall arrives. The city’s distinct mix of desert charm, luxury living, and cultural attractions drive continued demand. Popular neighborhoods like Downtown Palm Springs, Movie Colony, and the Escena Golf Club offer a variety of inventory options. Palm Springs’ scenic beauty and proximity to major airports further enhance its appeal.
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Palm Springs
Palm Springs Housing Demand
Palm Springs has seen a slight uptick in competition recently. 13.1% of homes are selling above their list price, a 2.9 percentage point increase compared to the previous year. On the other hand, price reductions have risen to 39.3% of all listings, a significant 17 percentage point increase YoY. Moreover, the sale-to-list price ratio has reached 97.2%, which means that sellers are receiving about 2.8% less than their asking price on average.
These trends point to a buyer-friendly market where strategic pricing is crucial. As a seller, pricing your home correctly from the start can help you avoid unnecessary price reductions. You could also consider offering concessions to buyers instead of slashing your price at the outset. Buyers can focus on homes with extended listing periods and those that have already seen price reductions. Such properties give you more room for negotiation.
These trends point to a buyer-friendly market where strategic pricing is crucial. As a seller, pricing your home correctly from the start can help you avoid unnecessary price reductions. You could also consider offering concessions to buyers instead of slashing your price at the outset. Buyers can focus on homes with extended listing periods and those that have already seen price reductions. Such properties give you more room for negotiation.
Homes Sold Above List Price
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Strong
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Balanced
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Strong
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Buyer’s Market
Seller’s Market
Balanced: Neither buyers nor sellers dominate the market. Supply meets demand, prices stay stable, and both parties negotiate on an equal footing.
Palm Springs Housing Market: When to Buy or Sell?
The housing market in Palm Springs has historically fluctuated between buyer-friendly and seller-friendly conditions, much like the broad California real estate market. The Palm Springs market can favor both buyers and sellers depending on the season. When inventory rises and competition decreases, buyers gain more negotiation power. On the flip side, sellers can benefit from higher prices and quicker sales, during periods when demand exceeds supply.
If the months of supply in Palm Springs rise above the balanced conditions of the US real estate market (5-6 months), buyers will have more time to evaluate their options. Sellers, on the other hand, may find themselves with more competition, which could slow down sales. Understanding these market dynamics can help you strategically time your purchase or sale.
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Frequently Asked Questions
How have Palm Springs house prices changed over the past year?
The median home price in Palm Springs is currently $680,000, which is a 20% decrease year-over-year. Despite this drop, the market continues to see strong demand for properties, especially in desirable areas and luxury segments. You can use our free home value estimator to assess your property's current market value and compare it with nearby sales.
What are Palm Springs, CA real estate market predictions for 2025?
Home prices in Palm Springs are expected to stabilize in 2025. Although the market saw a 20% decrease in median home prices, demand remains strong year-round. While rising mortgage rates may challenge affordability, the market presents many opportunities for buyers.
What’s the average home price in Palm Springs?
Palm Springs’ average home price is currently $680,000, a decrease of 20% compared to last year. Prices vary based on the location and type of property: a typical condo costs around $425,500, while single-family homes average $1,239,000. If you're looking to buy, there are cheap homes for sale in Palm Springs that can fit your budget.
Is this a good time to buy a house in Palm Springs, CA?
Given the decrease in home prices and extended days on market, it could be a good time to buy. Properties with price reductions can give you more room for negotiation. However, be mindful of mortgage rates and inventory levels to make the most of your investment. Check the current housing market trends in Palm Springs to decide the best time for your investment.
How is the housing market right now in Palm Springs?
The city’s housing market has cooled slightly. Properties now stay on the market for 83 days, an increase from last year’s 75 days. While there has been a drop in supply, demand remains more or less stable, which shows that buyers are still active.
When will the Palm Springs housing market crash?
A significant crash in the Palm Springs housing market seems unlikely. The city's real estate is driven by its location and demand for second homes. Despite price fluctuations, the market is expected to remain stable in 2025.
What is the procedure for buying a home in Palm Springs?
Start by setting a clear budget and securing mortgage pre-approval . Once that’s in place, browse homes for sale in Palm Springs, submit offers, and work with a local real estate agent to negotiate the best deal. Ensure a detailed inspection of the property before finalizing your purchase.
How can I list my home for sale in Palm Springs, CA?
You can list your home for sale with a Flat Fee MLS California listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀
What is the average mortgage rate for buyers in Palm Springs?
The average mortgage rate for buyers in Palm Springs typically ranges between 6.8% and 7%, depending on the type of loan and the borrower’s credit score. Always check the current rates with multiple lenders before you make a decision.
What is the cost of living in Palm Springs, CA?
Palm Springs’ cost of living is 19% higher than the national average, mainly due to housing costs. The city’s location, recreational activities, and lifestyle contribute to its relatively high living expenses. However, Palm Springs remains more affordable than other Californian cities like Los Angeles and San Francisco.
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