Palm Springs, CA (November 2025) — After two years of record-breaking home prices across the Coachella Valley, the latest Desert Housing Report from GPSR Research shows that values have eased significantly from their 2022 peak—and continue to show mild year-over-year declines across most cities.

Prices Down Across the Region

According to the report, the median price for a detached home in the Coachella Valley stood at $625,000 in October 2025. That’s 15.7% below the all-time high of $741,500 reached in April 2022, and 1.6% lower than the same time last year.

For attached homes (condos and townhomes), the median price is $420,000, down 11.6% from the record high of $475,000 in February 2022 and 2.2% lower than in October 2024.

While the pace of decline has slowed, the data underscores a steady cooling trend that has reshaped the desert’s once-frenzied real estate market.

City-by-City Price Shifts (Detached Homes)

Cathedral City – Down 8.1% from the 2022 high, up 2.2% from last year. Cathedral City remains one of the few bright spots with slight year-over-year growth, though values are still well below pandemic-era peaks.

Palm Desert – Down 11.7% from 2022, up 1.6% from last year. Palm Desert’s central location and golf course communities continue to attract buyers, keeping the market relatively balanced despite the broader regional cooling.

Rancho Mirage – Down 7.1% from 2022, down 0.9% from last year. The luxury segment has softened as high-end buyers face increased borrowing costs and longer selling times.

Indio – Down 7.3% from 2022, down 1.8% from last year. Indio’s market remains active thanks to ongoing development and family-oriented communities, but price growth has slowed significantly.

Coachella – Down 4.4% from 2022, down 2.3% from last year. The city continues to see moderate declines, holding more stable due to its lower overall price point and local demand base.

La Quinta – Down 13.0% from 2022, down 3.4% from last year. Luxury homes and resort properties have seen notable softening as inventory expands and demand eases.

Desert Hot Springs – Down 3.5% from 2022, down 3.5% from last year. The city remains one of the more affordable options in the Valley, continuing to attract first-time buyers and investors despite modest declines.

Palm Springs – Down 23.7% from 2022, down 4.0% from last year. After dramatic appreciation during the pandemic, Palm Springs’ market has cooled, though well-priced mid-century and architectural listings continue to move steadily.

Bermuda Dunes – Down 20.3% from 2022, down 8.0% from last year. The area is seeing deeper corrections as higher-end homes sit longer on the market.

Indian Wells – Down 13.9% from 2022, down 16.5% from last year. The largest annual decline in the Valley underscores the slowdown in the upper-tier segment, with months of sales now reaching 7.4—the highest of any city in the region.

City-by-City Price Shifts (Attached Homes)

Palm Springs – Median attached price: $505,000, down 15.2% from the 2022 high of $595,000 and 3.6% from last year. Condos remain in high demand near downtown and Twin Palms, but buyers are more price-conscious as monthly costs rise with HOA fees and higher mortgage rates.

Palm Desert – Median attached price: $479,500, down 11.4% from 2022 and 5.9% from last year. With a large number of golf and country club developments, Palm Desert continues to see steady but more selective buyer activity.

Rancho Mirage – Median attached price: $575,000, down 8.5% from 2022 and 3.1% year-over-year. Inventory has grown within resort-style communities like Mission Hills and Rancho Las Palmas, softening the market slightly.

Indian Wells – Median attached price: $840,000, down 17.0% from 2022 and 11.8% from last year, reflecting a cooling in the luxury condominium sector.

La Quinta – Median attached price: $579,000, down 14.5% from the 2022 high and a sharp 20.4% year-over-year decrease—the largest decline in the Valley’s condo market. The drop reflects a normalization after years of strong investor-driven activity.

Cathedral City – Median attached price: $355,000, down 8.0% from 2022 but up slightly—about 1.2%—from last year. The city remains one of the Valley’s most affordable options for condo buyers.

Desert Hot Springs – Median attached price: $265,000, down 6.3% from 2022 and 4.2% year-over-year. Entry-level condos continue to attract first-time buyers and investors looking for lower-cost desert housing.

Indio – Median attached price: $390,000, down 9.8% from 2022 and 5.4% from last year. The attached-home market here mirrors detached trends, with fewer multiple-offer situations and longer selling times.

Coachella – Median attached price: $310,000, down 6.1% from 2022 and 3.0% from 2024. Affordable condos continue to hold steady with local owner-occupant demand.

Bermuda Dunes – Median attached price: $415,000, down 10.0% from 2022 and 7.2% from last year. The market has cooled after the strong price surges seen in 2021 and 2022.

Market Balance Returns

Inventory has climbed to 3,233 active listings, a 14.5% year-over-year increase, as more homeowners list properties and fewer buyers compete per listing.
The region’s months of sales ratio—the number of months it would take to sell all current listings—has risen to 5.2 months, up from 4.6 months in October 2024, signaling a move toward a balanced market.

Homes are also taking longer to sell: the median days on market has stretched to 59 days, compared with 46 days a year ago.
GPSR reports that just 12.3% of October sales closed above list price, down from 14.5% in 2024, further evidence that multiple-offer scenarios are becoming less common.

Market Interpretation

Despite the declines, experts note that this is not a distressed market—rather, a normalization following the 2020–2022 surge that pushed prices up by 40% or more in some neighborhoods.
Sellers are adjusting expectations, and buyers are regaining leverage after years of bidding wars.

“Prices aren’t crashing; they’re returning to sustainable levels,” the report summarizes. “The Coachella Valley is rebalancing after an overheated cycle fueled by record-low interest rates and pandemic-era migration.”

Outlook

GPSR analysts anticipate that prices will remain relatively stable through early 2026, with smaller monthly adjustments as supply and demand settle into equilibrium.
Should mortgage rates begin to ease, the Valley could see renewed activity from both full-time residents and second-home buyers.

For now, the message is clear: the Coachella Valley housing market has come down from its highs—but it remains fundamentally sound, supported by lifestyle demand, steady population growth, and limited new construction.

Source: The GPSR Desert Housing Report – October 2025 (PDF)

The Author, Eric Gray, is a REALTOR®️ with Desert Lifestyle Properties, CA DRE 02225444