Housing Market Dynamics: Are Buyers Gaining Power in the Greater Palm Springs Area?

The real estate market is shifting—both nationally and here in the Greater Palm Springs area. If you’re planning to buy or sell in 2025, understanding these changes will help you make the smartest moves in today’s evolving market.

Buyers, you finally have more options than in recent years, but that doesn’t mean every seller is desperate for a deal.

Sellers, rising inventory means pricing strategy is everything—the right price attracts strong offers, while overpricing can leave you sitting on the market for months.

So, what’s happening on a national scale, and how does it compare to what we’re seeing here in Coachella Valley? Let’s break it down.

National Housing Trends: Buyers Are Gaining Some Leverage

Recent analysis from ResiClub highlights key changes in the national housing market:

📈 National active listings have jumped 24.6% year-over-year, giving buyers more choices.
📉 But inventory is still 25.3% below pre-pandemic levels, meaning we’re not yet in a full buyer’s market.
🏡 Some states (Colorado, Florida, Texas) now have more homes for sale than before the pandemic, leading to slower price growth and, in some cases, price declines.
💰 Affordability is still a challenge, with high mortgage rates keeping some buyers cautious.

The big takeaway? Buyers are in a better position than they were during the red-hot pandemic market, but well-priced homes are still selling.

How Does This Compare to Greater Palm Springs?

Here’s how these national trends play out in Coachella Valley’s real estate market:

📈 Inventory has surged to 3,389 homes in January 2025, a 1,023-unit increase from last year—giving buyers more negotiating power.
📉 Total sales have remained flat year-over-year, meaning homes are taking longer to sell, but demand hasn’t completely disappeared.
📊 Median detached home price increased to $689,753, up $30,753 from last year—but appreciation varies by city.
📉 Luxury homes ($2M+) are seeing the biggest price cuts, averaging 4.4% below asking price.
📉 The median days on market (DIM) is now 43 days, slightly longer than last year.

What does this mean? More inventory + steady demand = a more balanced market. Buyers are less pressured than they were in 2021-2022, but sellers who price right are still closing deals.

Where Are Buyers Gaining the Most Power?

📍 Palm Springs: Buyers have leverage here, as homes are selling at an average 3.9% discount—one of the highest in the valley.
📍 La Quinta: Seeing higher inventory and longer days on market, making it a buyer-friendly area.
📍 Indian Wells: Prices have dropped 12.6% year-over-year, creating potential deals for buyers.
📍 Luxury Market: Higher-end homes are seeing the most price reductions, meaning luxury buyers have more negotiating room.

If you’re a buyer looking for a deal, these areas may offer the most opportunity.

What This Means for Sellers

🏡 With inventory up, sellers face more competition.
📉 Homes in Palm Springs and the luxury market are seeing the biggest price reductions.
📢 Overpricing is a risky move—buyers will simply move on to better-priced homes.

Sellers who price competitively from the start are the ones securing the best offers. Overpricing and waiting for the “right” buyer is a gamble in today’s market.

What This Means for Buyers

🔹 You have more options than last year.
🔹 You can negotiate more in cities where inventory has risen the most.
🔹 But well-priced homes are still selling, so don’t assume every seller is desperate.

If a home is new to the market and priced right, expect competition. If it’s been sitting for 45+ days, there’s likely room to negotiate.

Final Thoughts: Are Buyers Gaining Power? Yes, But…

We’re seeing a market that’s shifting toward balance. Buyers have more choices and better negotiating power, but well-priced homes are still moving.

If you’re a seller, pricing your home for today’s market—not last year’s—is key.

If you’re a buyer, you have more opportunity, but don’t assume every home is a steal—strong listings are still in demand.

📩 Thinking about buying or selling in 2025? Let’s chat! Contact me today for a strategy that works in this market.