Palm Springs Real Estate Market: 2025 Trends

If you’ve ever wondered why people keep coming back for the sunshine, golf, and mid-century style, you already know the pull of homes in Palm Springs. As prices, inventory, and selling times shift through 2025, following these numbers helps buyers, sellers, and curious neighbors understand what’s really happening on each block.

The market update below gathers the latest year-to-date figures on prices, supply, and days on market so you can see exactly where things stand right now.

What is the Current State of the Palm Springs Real Estate Market?

The Palm Springs housing market in 2025 feels calmer than the whirlwind we saw right after the pandemic. Prices are edging up instead of sprinting, inventory is higher than last year, and homes are taking a bit longer to find their new owners.

Redfin logged a median sale price of about $630,000 in August 2025, which is roughly a 2% bump from the same month in 2024. At the same time, the typical home spent around 119 days on the market, giving buyers more time to compare options and negotiate.

Higher supply is the big story. Local market trackers show the Palm Springs real estate market carrying the most active listings in several years, thanks to both detached and attached homes hitting the MLS. That extra choice shifts some leverage to buyers, especially in the $400K–$700K range, where much of the valley’s home sales happen.

Sellers who price competitively and present well still land offers, but gone are the days when anything listed on Friday had multiple bids by Monday. Overall, the market is settling into a more balanced pace that lets buyers breathe while still rewarding well-prepared sellers.

Average List Price

Median list price indicators vary by data provider, but Realtor.com listed the Palm Springs median listing price around the high $600Ks in late summer 2025.

This figure reflects listings across detached and attached homes and captures both entry-level single-family homes and higher-end mid-century modern properties that push the local average up.

Average Sales Price

The median sale price for Palm Springs was roughly $630,000 in August 2025, according to Redfin’s YTD snapshot, while other indexes show values clustered in the low to mid $600,000s, depending on methodology and the mix of attached versus detached homes. That spread is common when a market includes both modest condos and high-end neighborhoods like Vista Las Palmas.

Because the sale price measures actual completed transactions, the average sales price tends to lag list-price shifts and reflects seasonal spikes. Expect sale prices to show small month-to-month variation across 2025 as buying patterns follow the usual spring/summer seasonality in the Coachella Valley real estate market.

Number of Homes Listed

Inventory for the Coachella Valley rose notably in 2025, with reports showing several thousand active units across the valley and a higher supply versus the prior year. Local brokers reported the highest inventory levels in several years for parts of the valley by mid-2025, which includes listings in Palm Springs, Cathedral City, and surrounding markets like Rancho Mirage and Palm Desert.

More inventory generally gives buyers more choice and can push negotiations toward price discounts or concessions.

Number of Homes Sold

Transaction volume in Palm Springs has been moderate in 2025. Redfin recorded roughly a low-hundreds monthly sales cadence for the city in peak months, which is similar to last year but with a slightly higher number of listings converting to sales in some pockets and slower absorption in others. Watch price bands: homes priced in the $400k–$600k range have historically accounted for the largest share of monthly home sales in the valley.

Sales data show variation by submarket: downtown and midtown micro-markets can move faster, while higher-end neighborhoods with luxury inventory may take longer to convert. This is why a tailored, neighborhood-level read matters when planning a pricing strategy.

Average Days on Market

Homes in Palm Springs were averaging well over two months to sell in late summer 2025, with Redfin reporting a median days-on-market figure near 119 days in August 2025, up from much shorter times the prior year. That indicates homes are remaining on the market longer and that buyers are taking more time to act.

When days on market rise, sellers typically respond by adjusting the list price. For buyers, longer selling time often opens negotiation room and chances to secure concessions, whether on price, closing costs, or contingencies.

Price Drops

Price adjustments and price drops have become more visible across parts of the Palm Springs housing market. The GPSR Desert Housing Report in mid-2025 showed a falling share of homes selling above list price and an increase in average discounts on detached and attached homes compared with the previous year. That trend is consistent with a market where supply has increased and buyer urgency has softened.

Expect negotiated sale prices to show small average discounts in neighborhoods with competing inventory. Sellers who price competitively and stage to highlight Palm Springs lifestyle attributes tend to sell closer to the list.

How Have Home Values Changed in Palm Springs?

One-Year Change

By August 2025, the median sale price had settled at $630,000, roughly 2 percent higher than the same month in 2024. It’s a gentle climb, more of a steady shuffle than the sprint we saw a few years ago, showing that well-priced Palm Springs homes still attract healthy interest.

Three-Year Change

Roll back to August 2022, and the median sat near $600,000. That’s about a 5 percent bump in three years. Most of it came during a brief inventory pinch late in 2023, when buyers chased limited listings before rising mortgage rates cooled the mood.

Five-Year Change

Remember August 2020? The early pandemic rush pushed the median to roughly $475,000. Fast-forward five years, and values are up around 32 percent, a jump powered by remote-work moves and the appeal of single-family homes with a bit of breathing room.

Ten-Year Change

Going back to August 2015, you’d have found the median price close to $375,000. Today’s $630,000 marks an approximate 68 percent rise over the decade. Limited new construction, a steady stream of lifestyle buyers, and the growth of short-term rentals have all helped lift both detached and attached homes across Palm Springs.

How Are Mortgage Rates?

As of late September 2025, weekly surveys recorded 30-year fixed mortgage rates in the mid-6% range. Freddie Mac’s Primary Mortgage Market Survey reported a 30-year FRM around 6.3% in late September 2025. These higher rates continue to weigh on affordability for typical buyers compared with pandemic lows.

Forecasts from Fannie Mae in September 2025 project that mortgage rates will trend toward the mid-6% area by the end of 2025 and could decline toward roughly sub-6% levels by the end of 2026, but forecasts vary and depend on macro conditions.

That path suggests mortgage costs may ease modestly over the next 6 to 12 months and could affect buyer demand and months-of-sales statistics across the valley.

Is it a Buyer or Seller’s Market in Palm Springs?

By mid-2025, the balance leaned toward buyers in many parts of Palm Springs because higher inventory and longer median days on market gave buyers more leverage.

That said, micro-markets and price bands still behave differently: competitively priced detached homes in the $400K–$700K band can attract steady buyer interest, while higher-priced, luxury, and unique mid-century properties may sit longer and require more tailored marketing.

In short, the Palm Springs housing market in 2025 is more of a market of choices: buyers can find negotiating room in many segments, while sellers need to be competitively priced and sharp on presentation. For sellers aiming to move a home quickly, pricing and staging are the two most important levers.

FAQs About the Palm Springs Housing Market

How do 2025 home prices in Palm Springs compare with other Coachella Valley cities?

Palm Springs carries a higher median home price than Palm Desert and Cathedral City but still trails luxury pockets such as Indian Wells. Across the Coachella Valley real estate market, a typical detached home in Palm Springs lists about ten percent above its Palm Desert counterpart, while attached homes show a smaller gap.

Did the pandemic permanently reshape the Palm Springs housing market?

The pandemic jump-started remote-work moves and second-home demand, and that wave still influences 2025 market trends. Although inventory in Palm Springs has climbed, many buyers continue to prioritize outdoor space and mid-century modern design, keeping the Palm Springs housing market more resilient than it was before 2020.

Are homes selling faster or slower compared to last year?

Homes are taking longer to sell than they did in 2024. Median days on the market have stretched past one hundred, so buyers have more breathing room while sellers need competitive pricing and presentation to avoid extended selling time.

Which sees more home sales in 2025 - detached homes or attached homes?

Detached single-family properties dominate home sales volumes this year, especially in the $400K to $700K range.

Attached homes, such as condos and townhouses, still attract activity, but detached and attached homes follow different pricing rhythms and days-on-market patterns, so it pays to track each segment separately.

How are mortgage rates affecting the list price strategy?

With mortgage rates near mid-6 percent, buyers focus on total monthly cost, and sellers aiming to move their home in Palm Springs quickly often set the list price a touch below recent comparables. Where inventory is thick, selling at an average discount of two to three percent off list is common.

When do buyers or sellers hold the advantage during the year?

In Palm Springs, inventory swells from March through early June as homeowners list before the summer heat, so buyers enjoy the widest selection and can shop around. Once the fall tourist season starts, new listings thin out, giving motivated sellers who remain on the market a bit more pricing power. Keep an eye on the months of sales and weekly inventory in Palm Springs to pick the moment that matches your goals.