Buyer Confidence Drives Higher Sales Activity in The Coachella Valley

The Coachella Valley real estate market closed the year with encouraging signs for both buyers and sellers. Sales activity has increased, inventory remains well balanced, and home values continue to show resilience across a range of price points. While the market has settled into a more normal rhythm compared to recent peak years, demand remains strong, and homes are continuing to sell within reasonable timeframes. The latest data points to a marketplace that is active, stable, and full of opportunity for those planning a move in the months ahead.

SALES TRENDS

Number of Homes Sold

In December 2025, a total of 529 homes were sold, which represents a significant 22.17% increase compared to the 433 homes sold in November. When compared to December 2024, a year ago, when 489 homes were sold, the sales have risen by 8.18% year-over-year. This surge in closed transactions suggests a continued level of buyer confidence and sustained demand throughout the valley.

Inventory of Homes for Sale

The number of homes available for sale at the end of December was 3,099, which is a 10.17% decrease from the 3,450 listings in November. Compared to December 2024, when there were 3,194 homes for sale, the current inventory is 2.97% lower year-over-year. This slight reduction in available listings helps maintain a relatively balanced marketplace, preventing excessive upward pressure on prices while still providing buyers with a good selection of homes. 

Median & Average Sale Price

Home values in the Coachella Valley continue to demonstrate stability and long-term appreciation.

• The average sales price in December 2025 reached $923,936, reflecting a 4.93% increase from November’s $880,553. Compared to $948,241 in December 2024, the average price is 2.56% lower year-over-year, indicating slight normalization following last year’s higher peak pricing.
• The median sales price rose to $609,995, up 4.27% from November’s $585,000 and 4.27% higher than December 2024’s median of $585,000.

The median price growth is particularly notable, as it reflects consistent strength in core market segments rather than isolated high-end transactions.  

Average Days on Market (DOM)

Homes spent an average of 71 days on the market in December 2025, improving from November’s 81 days. Compared with 70 days in December 2024, the market is essentially stable with only a 1.43% year-over-year increase. This indicates that properly priced and well-presented homes continue to attract buyers in a reasonable timeframe.

New Listings 

In December 2025, there were 743 new listings, a 21.29% decrease compared to the 944 new listings in November. When compared to the 765 new listings in December 2024, the supply is 2.88% lower year-over-year. This seasonal slowdown in new listings, which is typical for December, helps maintain balanced inventory levels as we enter the new year. 

What It Means For Buyers:

For buyers, the Coachella Valley market offers a favorable balance of opportunity and stability. With inventory levels slightly lower than last year but still healthy, buyers have a good selection of homes to choose from without facing the intense competition of past peak cycles. Days on market remain reasonable, giving buyers time to evaluate options, and pricing has shown modest year-over-year normalization at the average price level.

What It Means For Sellers:

For sellers, the market continues to reward homes that are priced correctly and presented effectively. Sales volume is up year-over-year, median prices have risen, and inventory has declined slightly, all of which signal sustained buyer demand. Homes are still selling within a predictable timeframe, but buyers remain value-conscious, making strategic pricing essential.

INTEREST RATES

As of mid-January 2026, the average interest rate for a 30-year fixed-rate mortgage—the most common loan for homebuyers—sits around 6.1–6.2% nationally, reflecting a modest easing from recent peaks and providing some relief compared to a year ago.  

For those seeking a 15-year fixed-rate mortgage, which offers a faster payoff and typically lower overall interest cost, current average rates are approximately 5.5–5.6%.  

Jumbo loans also remain competitive. The 30-year fixed-rate jumbo mortgage is averaging near 6.4%, reflecting slightly higher pricing due to larger loan amounts but still offering strong terms relative to historic levels.  

CITY STANDOUTS!  WHAT'S UP AND WHO'S DOWN?

The numbers for each major city in the area give a better view of the trends in our market.

Sales activity across the Coachella Valley increased compared to the same period last year, reflecting sustained buyer engagement. Palm Desert led the valley with 140 homes sold, up 25%, while Rancho Mirage and Indian Wells posted strong gains of 20% and 33% respectively, signaling continued demand in higher-end markets. At the other end of the spectrum, Desert Hot Springs and Indio recorded declines in closed sales, down 13% and 20%, indicating softer activity in more price-sensitive segments.

Pricing trends highlight strength at the luxury end and modest normalization elsewhere. Indian Wells recorded the highest average sale price at $2.34M, up 41% year-over-year, underscoring continued appetite for premium properties. Meanwhile, Palm Springs and Palm Desert saw average prices in the low-to-mid $800K range, both down roughly 17% to 19%, reflecting some price adjustment in mid-upper segments. Several mid-valley cities, including Desert Hot Springs and Coachella, posted average price increases of around 16%, showing continued affordability-driven demand.

Homes across the valley are still selling in reasonable timeframes, typically within 60 to 75 days. La Quinta and Cathedral City were among the fastest-moving markets at 60 and 63 days, while Desert Hot Springs and Coachella averaged 81 to 86 days, representing the longer end of the spectrum. Most other communities, including Palm Springs, Palm Desert, Rancho Mirage, and Indian Wells, clustered near the mid-70 day range.

CITY WATCH - RANCHO MIRAGE

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