Click here for the full Desert Luxury Housing Report for September 2024.
If you’ve been thinking about buying or selling a high-end home in the beautiful oasis that Palm Springs and the Coachella Valley are renowned for, here’s what you need to know about what’s happening in the luxury market priced at $2.8 million and above.
In this September 2024 market update, we’ll break down the latest Desert Luxury Report to help you understand where the market’s headed, where the best deals can be found, and why now might be the perfect time to make a move.
The Current Landscape: Market Overview
Palm Springs’ luxury market is seeing an interesting mix of activity. With active listings up 3% from last month, we now have 94 high-end homes on the market. New listings have also shot up by 30%, signaling a renewed interest from homeowners looking to capitalize on today’s market conditions. For buyers, this increase means a wider selection, while sellers may face a bit more competition in the months to come.
Price Trends: Are Values Stabilizing?
The luxury market’s top price is currently holding steady at $36 million – but that doesn’t mean all prices are on the rise. In fact, the average price has dropped by 7%, landing at $5.63 million, and the median price has nudged down by 2% to $4.3 million. However, if we look closer, we see that the median price per square foot has inched up to $912, indicating that the price per unit of space in Palm Springs is still in demand.
These subtle shifts in price and square footage value make this a unique time for both buyers and sellers. Buyers can benefit from the price adjustments, and sellers can capitalize on the increasing per-square-foot demand by marketing their property’s standout features effectively.
Top Cities in the Spotlight
Each desert city has its own unique luxury real estate vibe, with some clear trends emerging across the area:
Indian Wells: Small but Mighty
While only one luxury home sold here last month, it went for an impressive $8 million, marking a 45% increase in price per square foot over the previous month. This shows Indian Wells is a hotspot for serious buyers who want high-end desert luxury.
La Quinta: Diverse Luxury Offerings
La Quinta stands out with its five homes in escrow and two significant sales last month, with the average sale price holding steady around $4 million. Whether you’re looking for a sprawling estate or a golf community home, La Quinta’s variety makes it an excellent spot for finding unique properties with excellent amenities.
Palm Desert: A Slower Month but Great Value
Palm Desert’s luxury market may have been quieter in terms of closed sales, but the current selection is worth exploring, with properties predominantly under $5 million. If you’re looking for luxury with top value per square foot, Palm Desert could offer some great opportunities.
Palm Springs: More Options for Buyers
Palm Springs itself didn’t see any closed sales in the luxury bracket last month, which means inventory is building. With homes currently listed from $3 million to $10 million, there’s an array of options for discerning buyers seeking a slice of classic desert luxury.
Homes Sold and Escrow Activity
September was a slower month for closed luxury sales across the Coachella Valley, with only four homes sold—a 69% decrease from the previous period. This dip in sales, however, came with a boost in the median sale price, which climbed by 7% to reach $4 million. This could indicate that while fewer properties are selling, those that do are commanding premium prices.
Meanwhile, the market has eight homes in escrow, with an average price of around $4 million. For buyers and sellers alike, understanding these escrow trends is crucial to gauge the real-time demand for luxury properties and anticipate how long homes might stay on the market.
Inventory Insights and What’s Next
As of now, the luxury market has an impressive 24 months of supply—a massive 236% increase, which hints at a shift towards a more balanced, or even buyer-friendly, market. With inventory growing, the coming months could offer buyers more choices and even some negotiating power, making it an opportune time for those looking to invest in Palm Springs luxury real estate.
For sellers, the message is clear: it’s time to showcase your home’s unique appeal to stand out in a competitive market. Highlighting your property’s standout features, such as iconic architecture, poolside views, or proximity to renowned golf courses, can make all the difference.
The Value of Buying in Palm Springs
If you’re on the fence about investing in Palm Springs, consider this: the area’s unique blend of high-end living, year-round sunshine, and strong demand for vacation rentals continues to make it a desirable destination. Not only do luxury homes here offer incredible lifestyle benefits, but they also present promising investment potential. With increasing interest in the Coachella Valley as a retreat for second-home buyers, the future for Palm Springs real estate looks bright.
Whether you’re ready to buy or contemplating selling, Palm Springs is a smart choice for those seeking luxury, community, and long-term value in a setting that’s truly iconic.
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/​
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*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.
