Greater Palm Springs Real Estate Market Update – October

Coachella Valley, CA

As of October 25, 2024, the Coachella Valley real estate market is showing a marked change in inventory, sales activity, pricing trends, and local market dynamics according to the Flex MLS market summary report, one of two MLS systems utilized in the Coachella Valley.

Rising Inventory

One striking development in the Coachella Valley real estate market is the rise in active listings. Currently, there are 2,354 housing units available, up from 1,865 units last year. This surge of nearly 26% indicates a steady increase of properties onto the market throughout the year. This increase in inventory is related to other market dynamics listed below and offers buyers a greater selection of homes to purchase in the Coachella Valley.

Declining Sales Activity

In contrast to the rising inventory, the number of sold listings has decreased. There were 363 homes sold this year, down from 411 a year ago, marking a decline of approximately 11.7%. This reduction in sales suggests that, despite the greater selection of homes, buyers may be exhibiting caution due to various economic factors, such as higher interest rates, market sentiment, and upcoming presidential election.

Pricing Trends

The average list price for homes in the Coachella Valley has reached $935,575 this past month, reflecting sellers’ optimistic pricing strategies. However, the average sale price has seen a notable decline to $704,961, which represents a 7.4% decrease from last year’s average of $839,524. This disparity between listing and sale prices points to a potential shift in buyer expectations and negotiating power, as buyers may be less willing to meet higher asking prices.

Days on Market

Homes in the Coachella Valley are currently spending an average of 67 days on the market. This figure is indicative of a market that, while experiencing increased inventory, is also seeing a slower sales pace. A longer days-on-market metric suggests that buyers are taking their time to make decisions, weighing their options carefully in the current environment.

Implications for Buyers and Sellers

For buyers, the uptick in inventory offers a broader range of choices and may reduce competition, which can lead to better negotiating opportunities. The decline in average sale prices also creates a more favorable environment for those looking to enter the market or upgrade their current living situation.

Sellers, however, may need to reassess their pricing strategies in light of the declining average sale price. With more properties available, competitive pricing becomes crucial to attracting potential buyers. The increase in days on market further emphasizes the need for sellers to present their homes effectively and be realistic about pricing expectations.

Possible Silver Lining

The Coachella Valley real estate market continues to be in a state of transition as of late October 2024 but may see an uptick in activity and sales after the presidential election and potential further cuts to interest rates. With rising inventory levels and declining sales activity, both buyers and sellers must adapt to a changing landscape. Buyers can take advantage of increased options and potentially lower prices, while sellers may need to adjust their expectations and strategies to remain competitive. As always, staying informed and consulting with real estate professionals will be essential for navigating these market shifts effectively.

The Author, Eric Gray, is a REALTOR®️ with Better Homes and Gardens Desert Lifestyle Properties, CA DRE 02225444.