Coachella Valley Real Estate Market Update – March 2025

Spring Momentum Meets Market Reality

As the desert warms up, so too does our housing market—but not without a few twists worth noting. The March 2025 housing data reveals a market that’s cautiously optimistic, with rising prices, growing inventory, and an evolving dynamic between buyers and sellers across the Coachella Valley.

📈 Prices Continue Their Upward Climb

The headline stat this month: prices are rising again.

• The median price of a detached home hit $710,000, the fifth monthly increase in a row and $11,000 above March 2024.
• Attached homes rose to a median of $510,000, up $10,000 year-over-year.

We’re seeing strong price appreciation in cities like Indian Wells, where detached homes are up 18.6%, and attached homes are up 17%. However, other markets like Palm Springs and La Quinta posted slight declines. This mixed bag reflects a market that’s adjusting—not retreating.

🏘️ Sales Volume Steady, But Still Below Normal

Sales activity remains seasonally stable.

• March's three-month average was 645 units sold, nearly identical to last year.
• But when seasonally adjusted, sales are 18.5% below historic norms—a sign that demand hasn’t fully rebounded despite improving interest rate sentiment.

Palm Desert, Palm Springs, and La Quinta lead the valley in volume, with Palm Desert topping out at 147 homes sold.

📦 Inventory is Back—and That’s a Good Thing

One of the most notable shifts: inventory is on the rise.

• As of April 1st, the Coachella Valley had 3,667 homes on the market, up 1,271 units from a year ago.
• This is the most balanced inventory we’ve seen since before the pandemic—and a positive sign for buyers who’ve been waiting for more options.

⚖️ "Months of Sales" Tells the Real Story

The months of sales ratio—a key metric comparing inventory to sales—now sits at 6.0 months, up from 3.9 last year. This means the market is leaning more balanced, with a slight edge to buyers in certain segments.

🔍 What’s Especially Interesting:

There’s a clear divide between homes under $700,000 and those priced above:

• Under $700K: Most price brackets fall between 4.7–5.8 months of sales, suggesting healthy, balanced demand.
• Above $700K: Ratios climb rapidly—6.8 months for $700K–$799K, 7.6 for $800K–$899K, and 7.1 for homes over $2M.

This means higher-end homes are taking longer to sell, and supply is beginning to outpace demand at the top of the market. Buyers in luxury segments may find increased leverage, while sellers should prioritize presentation, pricing, and marketing to stand out.

⏳ Selling Times Hold Steady

Despite rising inventory, homes are still moving at a decent pace.

• The median days on market (DOM) is now 48 days, up just three days from last year.
• Cathedral City, Coachella, and Palm Springs are leading the pack with the shortest DOM.

This stability is helping keep prices firm—even as other metrics point to a cooling trend.

💰 Discounts, Premiums & Buyer Behavior

Homes are, on average, still selling slightly below list price:

• Detached homes are selling at a 2.5% discount, and attached homes at 2.9%.
• Only 11.5% of homes sold over list price, down from 14.3% a year ago—back to pre-pandemic norms.

What this tells us: the frenzy has faded, but strong properties still attract strong offers.

What It All Means for You

✅ Sellers: This is still a healthy time to list—especially in sub-$700K ranges. Be strategic with pricing and prep, especially if you’re in a slower-moving luxury segment.

✅ Buyers: More inventory means more choice and negotiating room. If you’ve been on the sidelines, now may be the perfect moment to re-enter the conversation.

✅ Investors: Appreciation potential is alive and well in certain submarkets. Areas like Indian Wells and Cathedral City are outperforming, while luxury inventory may offer discounts for those with a long-term view.

Final Thought:
This spring isn’t a boom, nor is it a bust—it’s a window of opportunity wrapped in balance. Whether you're buying, selling, or investing, now’s the time to stay informed and act strategically. Let’s talk if you want to make your next move with clarity and confidence.