Prices Hold—But For How Long?

April marks a pivotal point in the 2025 housing cycle, and the latest Desert Housing Report offers valuable insight into where we stand—and where we might be headed. While the national conversation shifts toward cooling prices in several U.S. markets, the Coachella Valley continues to hold steady, though not without signs of change.

🏡 Prices: Steady at the Top, Slipping at the Edges

The median detached home price in the Coachella Valley rose for the sixth consecutive month, hitting $725,000—just $500 less than last year. That’s a far cry from the steeper year-over-year declines seen in places like Austin, Tampa, or Phoenix, all highlighted in a recent ResiClub report tracking 80 major metros where prices are fallingDesertHousingReportApri…EXTERNAL80 housing mark….

However, not every city in our region is escaping unscathed:

• Palm Springs detached homes are down 3.8% YoY.
• La Quinta attached homes dropped a notable 10.5%.
  These aren’t headline-grabbing crashes, but they’re meaningful soft spots in an otherwise resilient regional market.

🧮 Sales Volume: Flat but Not Falling

Valley-wide, sales are essentially unchanged from last April—734 units vs. 736 the year before. But when we zoom out, the picture shifts: sales are still 17% below historical norms, showing that the recovery in buyer activity is ongoing, not complete.

🛒 Inventory & Supply: The Shift Is Real

Inventory climbed to 3,799 units, a jump of over 1,300 homes YoY, returning us to pre-pandemic levels. That’s a positive for buyers, but it’s beginning to shift the balance:

• Months of supply rose to 6.2 months (up from 4.1),
• A clear sign that supply is outpacing demand in several submarkets.

As ResiClub’s national report noted, “markets with rising inventory are the ones seeing the most price corrections.” The Coachella Valley is not yet one of them—but we’re watching that trend line closely.

⏳ Days on Market & Discounts: A Return to Normal

Homes are now taking 48 days to sell, up five days from last year. Meanwhile, sellers are giving ground:

• Detached homes sold at a 2.6% discount on average.
• Attached homes at 2.8% off list.
  Just 11.3% of homes sold above list price—a sharp shift from the pandemic-era frenzy and a return to traditional negotiation dynamics.

💡 What It Means Moving Forward

Unlike some overheated markets, the Coachella Valley has managed to hold its footing. Prices remain elevated, but the foundation is shifting:

• Buyer activity is slowly returning, not surging.
• Inventory growth is good for balance, but if it continues without matching demand, price pressure will follow.
• Sellers are having to adjust expectations and timelines.

The Coachella Valley isn’t on the list of 80 U.S. markets with falling home values—but if inventory keeps climbing and sales stay flat, we’ll need to keep a close watch.

📬 Final Word

Whether you're thinking of buying, selling, or just curious about where things stand, April’s data offers a clear message: this is a market in transition. It’s not 2021 anymore—but it’s not 2008 either. The smart play? Stay informed, stay strategic, and stay ahead.

Want to know what this all means for your property or plans? Let’s connect and talk about it.