If you've been watching the Palm Springs real estate market with a mix of curiosity and cautious optimism, you’re not alone. With national headlines screaming everything from “crash coming” to “rates finally falling,” it’s no wonder buyers and sellers alike are wondering what the real story is.
We’ve sifted through the latest market data to provide you with an expert assessment of the current market conditions. Here’s your June 2025 Palm Springs market update – plus an insider peek at what’s happening in the luxury segment.
General Market Snapshot: It’s Still a Buyer’s Market (But Not for Long)
As of early June 2025, the median list price for single-family homes in Palm Springs sits at $1,095,900, according to Chartwell Escrow’s latest market report. Inventory is holding steady at 487 homes, and the Market Action Index (MAI) is at 28, signaling a slight buyer’s advantage.
That means there are more homes for sale than buyers, which means sellers are having to work a little harder – and price a little smarter.
Key Stats at a Glance:
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Median price of new listings: $905,267
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Median days on market: 98
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Price reductions: 41% of active listings
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Only 2% of homes increased in price
What’s worth watching is that home sales have started outpacing new listings – a subtle but significant signal that buyer demand is returning. If this trend continues, Palm Springs could tilt back toward a seller’s market before the year is out.
The Luxury Market: Holding Steady, But Slower to Move
When we zoom in on the high-end of the market, the tone shifts a bit. According to the Desert Luxury Report from The Institute for Luxury Home Marketing, Palm Springs remains one of the more stable luxury micro-markets across the Coachella Valley.
As of May 2025:
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Luxury inventory is stable month-over-month, with a balanced 6–7 month supply
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Luxury home prices are holding, despite longer days on market
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The luxury segment shows the lowest volatility in the region compared to Rancho Mirage, La Quinta, and Palm Desert
However, DOM (Days on Market) is creeping upward, even for multimillion-dollar listings. This isn’t surprising though because high-end buyers are taking their time.
It’s worth keeping in mind that when luxury markets do shift, they often rebound quickly and dramatically. As inventory is gradually absorbed and interest rates soften, expect competition to ramp up – especially in neighborhoods like Old Las Palmas, Vista Las Palmas, and Indian Canyons.
What’s Moving? Mid-Market Sweet Spot
Interestingly, the strongest demand isn’t at the top or bottom of the market – it’s right in the middle.
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Homes priced between $695,000–$1.3M are being absorbed faster
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These listings see more offers and shorter DOM than either extreme
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Mid-century moderns and updated pool homes continue to attract attention, especially with STR potential
This reinforces what many agents on the ground are saying: Palm Springs remains a top choice for buyers seeking a lifestyle upgrade, not just a property.
The Current Market in a Nutshell
If you're a buyer, you're in a moment of power – but maybe not for long. Inventory is still generous, sellers are negotiable, and prices are holding – not soaring.
If you're a seller, the message is simple: price strategically and prepare your home to shine. The demand is there, especially if your home aligns with what today's buyer wants: turnkey condition, outdoor living, views, and rental potential.
Why Palm Springs Is Always a Smart Investment
Despite fluctuations, Palm Springs continues to outperform many comparable desert markets in terms of stability, lifestyle appeal, and long-term value with:
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A strong vacation rental economy
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One of the highest percentages of LGBTQ+ homeownership in the nation
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Timeless architectural appeal (mid-century stunners)
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And a lifestyle that blends leisure with luxury
It’s no wonder buyers keep circling back to Palm Springs. Whether you're buying your first desert home, investing in a short-term rental, or downsizing into sunshine, there's plenty of opportunity in 2025.
For a more complete Palm Springs Housing Market Overview, jump over to my Free Market Reports page and download the most recent ALTOS Housing Market Report and Luxury Market Report.
What do you think is driving the shift in buyer demand right now? Have you noticed price changes in your own neighborhood?
What other questions do you have?
Consider an experienced and knowledgeable local realtor (like me) to help you make sense of things.
If you’re ready to buy and/or sell yourself, I look forward to assisting you. I promise to give you a much more targeted answer than ChatGPT, Google or the news will.
Please feel free to give me a call, text, email me – or let’s schedule a Zoom meeting.
I’m looking forward to connecting with you!
Your Palm Springs Insider,
Glen Nadeau
📱 Call or Text: 805-220-8097
📨 Email: [email protected]
📅 Zoom: Click here and let's schedule it!
💻 Website: https://www.modernlivingpalmsprings.com/
🔎 My Google Business Profile: https://goo.gl/maps/hipgpHfDezGWBTxd6
*We cannot guarantee any of the above statements or third-party links. Before you enter any transaction, you should read and review all contracts, leases, and information as they are unique and subject to changes. We recommend you consult with your accountant, attorney, tax advisor, and local real estate professionals prior to any real estate transactions.
PS- Are you a part of the LGBTQ+ community and looking to relocate to Palm Springs and the Coachella Valley? Check out our FREE “Palm Springs Enthusiasts LGBTQ+ Relocation Guide” and find out why Palm Springs is such an oasis of Pride and inclusivity – brought to you by The Palm Springs Guys and Glen Nadeau Real Estate 🏳️🌈
