Canadian Snowbirds and Coachella Valley Real Estate: What Property Owners and Buyers Need to Know

The Coachella Valley has long been a favored destination for Canadian snowbirds looking to escape harsh winters and enjoy the desert lifestyle. However, recent changes in trade policy, tariffs, and new U.S. entry requirements for Canadians are prompting some to reconsider their travel and homeownership plans in the region.

For both Canadian and non-Canadian property owners, buyers, and sellers, these shifts in the market could have implications. Whether you currently own a home, are considering buying, or are thinking about selling, here’s what you should know.

What’s Changing?

1. Trade Tariffs and Economic Factors

The U.S. recently imposed 25% tariffs on several Canadian goods, adding financial strain to some Canadians who frequently travel to or invest in the U.S. While these tariffs don’t directly affect real estate transactions, they contribute to broader economic uncertainties that may influence purchasing power and investment decisions.

2. New U.S. Entry Requirements for Canadian Visitors

Starting April 11, 2025, Canadians who stay in the U.S. for more than 30 days will need to register and provide fingerprints. This change could make it more cumbersome for seasonal residents who typically spend extended periods in the Coachella Valley.

While this new requirement does not prohibit Canadians from owning property, it may affect how long they choose to stay and whether they decide to maintain their U.S. homes or explore other destinations.

What Does This Mean for the Local Real Estate Market?

For Current Homeowners:

• Canadian Owners: If you’re a Canadian property owner in the Coachella Valley, these changes may prompt you to reassess your long-term plans. Some may choose to sell, while others may opt to adjust their stay durations to remain in compliance with new regulations.
• Non-Canadian Owners: For U.S. homeowners, particularly those considering selling, this shift in buyer behavior may affect demand. If fewer Canadian buyers enter the market, pricing strategies and marketing approaches may need to adapt.

For Potential Buyers:

• Canadians Looking to Buy: If you’re still considering purchasing a home in the area, it’s important to factor in travel logistics and potential policy changes that could impact your ability to visit as frequently as you’d like.
• U.S. Buyers: A potential decrease in demand from Canadian buyers could present more opportunities in the market. With inventory levels rising, there may be more choices and negotiation power for local buyers.

Current Market Trends in the Coachella Valley (February 2025 Update)

According to the latest February 2025 Desert Housing Report, here’s where the local market stands:

• Median Home Prices:
• Detached homes: The median price increased to $700,000, up $15,000 from last year.
• Attached homes: The median price rose to $505,000, an increase of $16,000 from last year.
• Sales Volume:
• The three-month average for home sales in February was 579 units, compared to 550 units last year.
• Palm Desert continues to lead with 128 sales per month, followed by Palm Springs (111) and La Quinta (98).
• Inventory & Supply Trends:
• As of March 1st, inventory stood at 3,510 homes, an increase of 1,144 homes from last year.
• The "Months of Sales" ratio, a key indicator of supply vs. demand, rose to 5.7 months, meaning homes are staying on the market longer.
• Days on Market (Selling Speed):
• Homes in the Coachella Valley had a median "Days in the Market" of 46 days, which is only three days longer than last year.
• Fastest-selling cities: Rancho Mirage (41 days), Bermuda Dunes (42 days), and Palm Springs (43 days).
• Slowest-selling city: Desert Hot Springs (59 days).
• Pricing & Discounts:
• Detached homes are selling at an average discount of 2.5%, slightly higher than 2.3% last year.
• The city of Coachella currently has zero price discounting, while Palm Springs has the highest average discount at 3.8%.

With supply increasing and sales slightly below normal levels, sellers may need to be more competitive with pricing and incentives.

What Should Property Owners and Buyers Do Now?

• For Sellers: If you’re thinking of listing your home, working with an agent who understands the evolving market—including the impact of Canadian buyers—can help ensure proper pricing and exposure.
• For Buyers: If you’re considering a purchase, keep an eye on how these changes impact inventory and pricing. This may be an opportune time to explore homes in desirable communities at potentially more favorable terms.
• For Canadian Homeowners: If you own a home in the Coachella Valley, consulting with a real estate professional about market conditions and future options can help you make an informed decision.

Final Thoughts

The Coachella Valley remains a highly desirable market for homeowners and buyers alike. While shifts in policy and economic factors may impact some segments, understanding the broader trends can help both Canadian and U.S. property owners navigate the changes effectively.

Whether you're looking to buy, sell, or simply stay informed, keeping up with these developments is key to making the best real estate decisions for your future.

If you have any questions about how the current market conditions affect your property, feel free to reach out—I’d be happy to help.