Is Zillow’s Bearish Forecast a Buzzkill for Coachella Valley Homeowners?

Spoiler Alert: Not exactly.

Zillow just released a not-so-sunny national housing market forecast, predicting only 0.9% home price growth nationwide between March 2025 and March 2026. For context, that’s a major drop from their prior forecast of 2.2% growth. They're citing higher mortgage rates, declining sales, and increasing inventory as the culprits. In short, Zillow's outlook is now officially...bearish. 🐻​

But here’s the twist: Coachella Valley is dancing to its own desert beat. Let’s unpack what’s really going on locally, based on the latest March 2025 Desert Housing Report.

🌵 Coachella Valley: Still Smokin' Hot...But Cooling?

📈 Prices Are Up

• Detached homes hit a new median high of $710,000—up $11,000 year-over-year.
• Attached homes rose to $510,000, up $10,000 compared to last March.

🛑 But Watch This: Price Growth is Uneven

• Indian Wells leads the gainers: +18.6% for detached homes and +17% for attached.
• Palm Springs and Rancho Mirage, however, saw prices drop 4.2% and 4.0% respectively.

📊 Inventory Is Rising...Fast

• Active listings are up 53% year-over-year.
• “Months of Sales” climbed to 6.0, signaling a market with more supply than demand.

⏳ Selling Times Are Still Reasonable

• Median Days on Market: 48 days (just 3 days more than last year).
• Cathedral City and Coachella are selling the fastest.

💰 Discounts Are Creeping In

• Detached homes are selling at a 2.5% average discount, up from 2.3% last year.
• Higher-end markets and homes over $2M are seeing deeper discounts—up to 3.9%.

🧠 What This Means for Coachella Valley Homeowners

Zillow might be hitting the brakes on their national forecast, but here in the desert:

• Prices are still appreciating, though gains are highly location-specific.
• Inventory is stacking up, so sellers may need to price competitively.
• Buyers have more options, and that’s bringing negotiation back to the table.

🔍 Final Take: Cautiously Optimistic

Is the Coachella Valley immune to broader market trends? No. But we're not crashing either. We're entering a more balanced, more traditional market—where strategy beats luck, and data beats headlines.

🧭 Thinking of selling or buying this year?

Let's have a real conversation about your neighborhood, your goals, and how we can navigate this evolving market together. I’ll give you honest guidance, not just national headlines.

📲 Text or call me today. Let’s talk real estate in real terms.