Three Key Takeaways from the January 2025 Coachella Valley Housing Market Report

As we kick off 2025, the Coachella Valley housing market is showing clear signs of shifting. With more homes hitting the market, steady but below-normal buyer demand, and stable prices, both buyers and sellers need to adjust their strategies. Here are the three biggest takeaways from this month’s market report.

1. Inventory is Rising—More Homes, More Choices

One of the most significant changes in the market is the increase in available homes. Active inventory now stands at 3,389 homes, which is over 1,000 more than this time last year. This puts inventory levels back to what we saw before the pandemic.

What this means:

• For sellers – More competition means pricing and presentation matter more than ever. Overpricing could leave your home sitting on the market longer.
• For buyers – You have more choices and less urgency to rush into a deal. But well-priced homes in desirable areas are still moving quickly.

2. Buyer Demand is Steady—But Below Normal

Home sales are 26% below historical norms, but they remain relatively unchanged from last year. Palm Desert leads the Valley in sales, averaging 114 closings per month, followed by Palm Springs at 101 per month. Buyers are still active, but they’re taking their time and negotiating more.

What this means:

• For sellers – The days of multiple offers in the first weekend are behind us. Expect buyers to be more selective, and prepare for realistic negotiations.
• For buyers – While you may have more leverage, don't assume every home is negotiable. If a property is well-priced, waiting too long could mean missing out.

3. Prices Are Stable—No Major Drops or Surges

Despite rising inventory, home prices remain steady. The median price for a detached home is $689,753, up $30,000 from last year. Attached homes have also increased slightly, now sitting at $485,000.

What this means:

• For sellers – Price your home competitively. While prices aren’t dropping significantly, buyers are more price-conscious and less willing to overpay.
• For buyers – Prices aren’t plummeting, but the increase in inventory means you have more room to negotiate—especially in areas with more supply.

Final Thoughts

The Coachella Valley market is shifting toward balance. With more homes available, steady but selective buyers, and stable pricing, it’s a market that rewards smart strategy.

• Sellers – Stand out with competitive pricing and great marketing.
• Buyers – Take advantage of more options, but don’t wait too long on well-priced homes.

Want to discuss what this means for your real estate goals? Let’s connect! Whether you’re buying or selling, I’m here to help you navigate this changing market.