Home Prices Remain Strong In The Coachella Valley Despite Fewer Sales
The Hamilton Real Estate Group September 14, 2025
The Hamilton Real Estate Group September 14, 2025
As summer winds down in the Coachella Valley, the real estate market continues to evolve. The latest data from August 2025 reveals a market that is adjusting to broader economic conditions while remaining resilient in key pricing metrics. Sales volume has softened in some areas, days on market are rising, and inventory is tightening slightly—all signs of a market recalibrating toward balance.
In August 2025, 454 properties were sold throughout the Coachella Valley—representing a 2.99% decline compared to the 468 homes sold in August 2024, and a 9.74% drop from July’s 503 sales. While this is the lowest August sales figure in recent years, it aligns with seasonal cooling and reflects longer decision-making cycles among buyers.
The number of active listings stood at 2,715 last month, an 11.16% decrease from July’s 3,056 homes. However, inventory remains 4.95% higher than the 2,587 homes available in August of last year. This decline in active listings is typical for the summer months, an this increase year-over-year is likely a sign that inventory during our peak months will be above prior year’s numbers.
August’s median sales price was $573,500, a 2.59% increase from July’s $559,000, and 1.03% higher than the $567,663 median in August 2024. This modest but positive movement reflects stable pricing conditions even as sales volume moderates.
The average sale price was $756,123, down 4.93% from $795,325 in July and flat compared to August 2024. The stability in average pricing—despite softer month-over-month numbers—suggests that well-presented, appropriately priced homes are still commanding strong values.
Homes spent an average of 88 days on the market last month. This is a 7.32% increase from July (82 days) and a notable 25.71% increase from 70 days in August 2024. While this longer timeframe can be perceived as a cooling trend, it also signals a more balanced market, giving buyers more time to make their decisions.
New listings declined slightly month-over-month, with 743 new properties coming on the market in August—3.38% lower than July’s 769 and 15.38% below the 878 listings in August 2024. This contraction in new inventory may create opportunities for sellers who position their homes competitively amid limited new competition.
For buyers, the current market presents more opportunities. With inventory levels slightly higher than this time last year and homes spending more time on the market, there’s more breathing room to explore options and negotiate strategically. Although prices remain stable, the moderation in sales activity could provide opportunities for buyers to secure favorable terms on desirable properties.
For sellers, pricing strategically and presenting your home well is more important than ever. While sales have slowed slightly, median home values have remained strong year-over-year, and serious buyers are still actively searching. With fewer new listings entering the market, a well-marketed and correctly priced property can stand out and attract attention. Sellers who are aligned with market conditions and willing to be flexible on timing or terms are well-positioned to achieve a successful sale.
Mortgage interest rates in California are showing some relief compared to recent highs. For conforming 30‑year fixed mortgages, typical rates are around 6.36% to 6.40% APR. The 15‑year fixed rates are lower, generally in the 5.30% to 5.55% range—offering shorter‑term borrowers meaningful savings in interest over the life of the loan. For jumbo 30‑year fixed loans—that is, loans exceeding conforming limits—the rates are a bit higher, commonly in the 6.40% to 6.50% range.
The numbers for each major city in the area give a better view of the trends in our market.
In August, home sales across the Coachella Valley showed notable contrasts. Cathedral City posted the highest year-over-year increase at 36%, followed by Desert Hot Springs with an 18% gain, signaling strong buyer demand in those areas. On the other end of the spectrum, Bermuda Dunes saw the steepest decline at 50%, while Palm Desert dropped 26%, reflecting more cautious activity in those markets.
Average sale prices in the Coachella Valley showed wide variability in August. The strongest gains were seen in Palm Springs and Palm Desert, both up 25%, signaling solid demand in those markets. Meanwhile, Indian Wells experienced the steepest decline at 36%, followed by La Quinta at 17% and Bermuda Dunes at 16%, suggesting buyers in some higher-end areas are negotiating more aggressively or favoring less expensive homes.
Homes across the Coachella Valley are taking longer to sell than a year ago, with Coachella seeing the largest increase in DOM at 170%, followed by Indio (+91%) and Bermuda Dunes (+63%)—a sign of more cautious buyer behavior and extended decision-making timelines. In contrast, Cathedral City was the only city to see an improvement, with DOM dropping by 19%, suggesting sustained buyer interest and faster-moving transactions in that market.
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.
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Call now for a free seller consultation, and let us help you decide if now is the right time to sell your home. Call us at (760) 409-8811.
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