Coachella Valley Sales Fall and Prices Ease in May

The Coachella Valley market is currently experiencing a normal adjustment period marked by a decrease in home sales and a modest softening of prices from last year. Meanwhile, rising inventory offers buyers a wider selection, enhancing their opportunities. At the same time, sellers are supported by solid list-to-sale price ratios near 97%, demonstrating that competitively priced properties continue to attract strong buyer interest.

SALES TRENDS

Number of Homes Sold

In May 2025, a total of 582 homes were sold in the Coachella Valley. This reflects a 10.6% decrease compared to 651 homes sold in April 2025 and an 18.0% decrease from 710 homes sold in May 2024. While sales volume has softened compared to last year, this trend is consistent with a market balancing toward more cautious buyer activity.

Inventory of Homes for Sale

Active listings in May 2025 stood at 3,516 homes, marking an 8.7% decline from 3,850 in April 2025. Notably, inventory is up by 20.7% from 2,914 homes available in May 2024. This increase in available properties provides buyers with a broader selection and an encouraging range of opportunities, while sellers benefit from a stable market with less competitive pressure than last year.

Median & Average Sale Price

The average sale price in May 2025 was $848,536, down 14.8% from $995,967 in April 2025, and 2.9% lower than $873,952 in May 2024.

The median sale price was $589,995 in May 2025, declining 6.2% from $629,000 the previous month, and falling 4.8% below the $620,000 recorded in May 2024. This marks the first time since the COVID surge that the median sale price is lower year-over-year.

While this signals a potential shift, it is too early to determine a definitive pricing direction. Additional months of data will be needed to confirm whether this is a temporary adjustment or the start of a longer-term trend.

Average Days on Market (DOM)

The average days on market increased modestly to 77 days in May 2025, rising 2.7% from 75 days in April 2025, and up 14.9% from 67 days in May 2024. This indicates a slightly slower pace of sales, giving buyers more time to consider their options while encouraging sellers to price strategically.

New Listings 

New listings in May 2025 totaled 1,037, representing a 14.4% decrease from 1,211 in April 2025, and a slight 1.9% decline compared to 1,057 in May 2024. New listings are coming onto the market at a consistent pace, maintaining a well-balanced environment and providing continuous new opportunities for buyers to explore.

What It Means For Buyers:

For buyers in the Coachella Valley, the market currently offers more choice and greater negotiating power thanks to a 20% increase in inventory compared to last year and slightly softened prices. Homes are staying on the market longer, giving you more time to make decisions without pressure, while steady new listings ensure fresh opportunities regularly. This balanced market favors well-prepared, informed buyers who can move quickly to secure the right home at a competitive price.

What It Means For Sellers:

For sellers in the Coachella Valley, the market remains steady but competitive, with fewer homes sold compared to last year and a slight moderation in prices. While inventory has increased, well-priced and well-prepared homes continue to attract serious buyers, supported by a strong sales-to-list price ratio near 97%. Sellers should price strategically and be ready for a slightly longer marketing period, knowing that quality listings still generate solid interest and can close successfully in today’s balanced market.

INTEREST RATES

As of June 2025, mortgage rates have eased slightly, with the average 30-year fixed-rate mortgage around 6.87%, the 15-year fixed rate near 6.04%, and the 30-year fixed jumbo mortgage approximately 6.92%. While still above historical lows, these rates offer a more favorable environment for buyers and refinancers. Individual rates will vary based on credit and loan specifics, so working with a mortgage professional is key to securing the best terms.

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.

In the Coachella Valley, the number of homes sold dropped in most cities. The cities with the larges drop in sales compared to last year were La Quinta (-36%), Palm Springs (-26%), and Coachella (-27%). Three cities saw an increase in sales with Bermuda Dunes and Indian Wells up (+10%) and Rancho Mirage up (+7%)

Average sale prices range broadly, with Indian Wells commanding the highest at nearly $1.88 million, Rancho Mirage at $1.24 million, and Palm Springs around $799,000. Price growth was strongest in Bermuda Dunes (+36%) and Desert Hot Springs (+11%), while the largest decrease in average selling prices was in Cathedral City (-18%)  and Rancho Mirage (-15%). 

Days on market (DOM) also differ by location, with Palm Springs homes taking the longest to sell at 93 days—up 48% from last year—while Coachella homes moved fastest at 35 days, down 30%. 

Overall, the data reflects a diverse market landscape where pricing and sales activity are influenced by local dynamics.

CITY WATCH - BERMUDA DUNES

If you're considering putting your home on the market, let us help you get it SOLD! Now, more than ever, marketing matters! Our world-class marketing plan, with online ads, paid YouTube ads, and social media exposure, is critical in this shifting market. Call now for a free seller consultation, and let us help you decide if now is the right time to sell your home. 

If you'd like a detailed market report for a specific city, email us and let us know which city reports you'd like to receive.

Call us at (760) 409-8811, or visit www.thehamiltonregroup.com for an easy-to-use home search and information on how we can help you with all your essential real estate needs.