Greater Palm Springs, CA
With the election behind us and as we transition to winter, the newest Desert Housing Report covering the full month of November 2024 shows us updated housing numbers for the Coachella Valley.
The Greater Palm Springs real estate market is experiencing its seasonal shifts. With cooler weather and an influx of seasonal visitors, the housing market is seeing changes in prices, sales, and inventory. Here’s an update on the state of real estate in the Coachella Valley, backed by the latest statistics.
Winter Climate in Palm Springs
Winter in Palm Springs is a major draw for both seasonal residents and visitors. The desert’s mild temperatures—averaging in the mid-70s during the day and cooler evenings in the 40s—make it an incredible escape from the colder climates across the United States and Canada. Clear, sunny skies dominate, offering a plethora of outdoor activities, from golfing to hiking in the surrounding mountains.
Home Prices: Seasonal Rise Begins
After six months of declines, home prices in the Valley are rebounding. Key takeaways include:
- Detached Homes: The median price increased to $634,990 in November, a $15,000 rise from last year however each city in the Coachella Valley tells a different story:
- Indian Wells showed the highest year-over-year price growth at 11%, while La Quinta experienced a decline of 7.6%.
- An average sized house in Palm Springs with the highest price per square foot at 526.78 dropped 7.5% from last year to $1,145,736 while an average sized Cathedral City house rose from last year 1.5% to $573,768 at $318.76 per square feet.
- Attached Homes: Prices dipped slightly, with a median of $447,000, down $8,000 from last year.
- Desert Hot Springs recorded a 15.4% gain, while Indio saw a modest 3.4% decline.
Here is the full price breakdown for each Coachella Valley city detached and attached:
Sales Activity: Below Normal Levels
Sales figures reveal ongoing challenges, although some stability is evident.
- Adjusted for seasonality, sales are 32.1% below normal levels up from the previous month of 34.2% below normal levels .
- The three-month average of sales was 472 units, slightly less than the 477 units a year ago.
- Only Rancho Mirage, Coachella, and Indian Wells reported significantly lower sales compared to last year.
- November’s dollar sales totaled $365 million, down 3.4% from last year.
Inventory & “Months of Sales” Ratios
Inventory has made a notable return to normal levels:
- On November 1st, inventory stood at 3,187 units, up 869 units from last year. There hasn’t been over 3,000 units in the desert since 2020.
- The “months of sales” ratio increased to 5.3 months, up 1.5 months from last year, a sign of a more balanced market compared to the frenzied conditions of recent years.
Days on Market (DIM): Speeding Up
Homes are selling faster as median selling times dropped for the second time in nine months:
- The median days on market (DIM) is 43 days, just seven days longer than last year.
- Desert Hot Springs leads with the fastest turnover at 34 days, followed by Indian Wells at 35 days.
- Rancho Mirage has the slowest median selling time at 53 days.
- Palm Springs day son market increased from 42 days to 45 days.
It goes to show that even in a slower market with higher inventory, if a home is priced right, it moves.
Price Discounts and Premiums
Price adjustments are stabilizing, with selling discounts matching last year’s levels:
- Detached homes are selling at an average discount of 2.1%, while attached homes sell at a 2.6% discount.
- The smallest discounts are in Coachella, Indio, and Cathedral City (1.4%), while Rancho Mirage has the highest discount at 3.4%.
- Homes selling over list price comprise 15% of sales, slightly below last year’s 15.5%.
Looking Ahead
As the Palm Springs area braces for its peak season, these trends hint at a stabilizing market. The return to balanced inventory and moderate discounts indicates a healthy adjustment after years of volatility.
The Coachella Valley remains a desirable destination for buyers and investors alike with our appealing winter climate and robust lifestyle,.
The Author, Eric Gray, is a REALTOR®️ with Better Homes and Gardens Desert Lifestyle Properties, CA DRE 02225444.
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