Coachella Valley Housing Market Update — Buyers, Sellers & STR Owners

The 2025–2026 season is shaping up to be one of the most balanced markets we’ve seen in years. Prices are stable, buyers are active again, and inventory is still rising — creating both opportunities and pressure, depending on which side of the table you’re on.

Below is a clear, data-backed breakdown of what this market means for buyers, sellers, and short-term rental property owners.

For Buyers: More Choices, Better Leverage, and Price Stability

If you’ve been waiting for the market to “cool down,” this is your moment — but it’s not a crash, and it’s not likely to become one.

📍 Prices Are Down From 2022 Highs

Detached and attached home values across the Valley are still well above pre-pandemic levels but below the peak of 2022:

• Detached: down 8–21% from 2022 highs depending on city (Palm Springs down 21.6%, Indian Wells down 1.8%, etc.).

• Attached: down 9–24% from 2022 highs depending on city.

📉 Year-over-Year Prices Are Also Slightly Lower

• Detached median: $644,776 (–0.8% YoY)

• Attached median: $419,000 (–6.3% YoY)

This softening gives buyers a bit more power — but NOT the deep discounts people hoped for in 2023.

📦 More Inventory = More Options

• 3,342 homes for sale, up 4.9% year-over-year.

Palm Desert, Palm Springs, and La Quinta now offer the widest selection of inventory in years.

🏡 Bottom Line for Buyers

This is the moment to make a thoughtful move. Prices aren’t spiraling down, but you do have more negotiating room — especially on properties that are dated, overpriced, or have been sitting on the market longer than 45 days.

If you’re waiting for a sign, this is it.

For Sellers: A Balanced Market Means Pricing Matters More Than Ever

Homes are selling — and in most cities, they’re selling faster than people expect — but buyers are more selective.

📉 Prices Are Down From 2022 Highs

Detached homes are down from peak values in every major city:

• Palm Springs: –21.6% from 2022 high

• La Quinta: –8.1%

• Rancho Mirage: –6.9%

• Palm Desert: –11.7%

Attached homes show similar adjustments.

This doesn’t mean property values are falling now — it simply means the pandemic surge has normalized.

📊 Year-over-Year Movement Is Modest

Price changes YoY reflect a steady, non-dramatic market:

• Detached: –0.8%

• Attached: –6.3%

Your equity is still strong — especially if you bought before 2020.

⏱️ Days on Market Are Normal

Average selling time is now in the 50–60 day range throughout the Valley.
In several cities, even faster:

• Indian Wells: 46 days

• Cathedral City: 47 days

🏁 Bottom Line for Sellers

If your home is priced accurately and shows well, it will sell.
If it’s overpriced… buyers will simply choose your competitor.

Strategic pricing is your biggest advantage — and that’s exactly where I come in.

For Short-Term Rental Property Owners: A Critical Moment for Strategy

Whether you’re holding, optimizing income, or considering an exit, STR owners are in a unique position this season.

📉 Values Have Declined Since 2022 Peaks

Most STR-friendly cities (Palm Springs, La Quinta, Palm Desert) show:

• Detached values down 8–23% from 2022

• Attached values down 10–20% from 2022

This matters for anyone evaluating equity or timing a sale.

📊 Year-over-Year Softening Is Modest

Typical YoY changes range from:

• Detached: –1% to –5% depending on city

• Attached: –4% to –15% depending on city

STR owners are not facing a collapse — just a rebalancing.

📦 Inventory Competition Is Real

Cities with the highest STR concentration also have high inventory:

• Palm Springs: 695 homes

• Palm Desert: 719 homes

• La Quinta: 451 homes

When more homes hit the market, buyers get picky. Income history, pool upgrades, and condition matter more than ever.

⚖️ Regulatory Attention Is Increasing

While no major changes have passed yet, all three primary STR cities continue to monitor TOT performance and compliance trends. Owners should stay ready for adjustments in 2026.

🏁 Bottom Line for STR Owners

Whether holding or selling, you need:

• A valuation model based on income, not just comps.

• A strategy for timing the market around seasonal demand.

• Awareness of policy shifts that could affect future revenue.

I can prepare that full analysis for you whenever you're ready.

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If you'd like a FREE consultation from a market expert, contact me here!