Luxury Real Estate Sets the Pace in the Coachella Valley

The Coachella Valley real estate market remains dynamic as we enter 2025, with rising average sale prices, steady median prices, and strong buyer activity across many cities. The luxury segment is driving price growth, while mid-market stability offers balance and opportunity. Whether you’re selling or searching for your dream home, these trends highlight the importance of staying informed in this evolving market.

SALES TRENDS

Number of Homes Sold

In December 2024, 487 homes were sold, marking a significant increase of 28.84% compared to 378 homes in November 2024 and an 11.95% increase from 435 homes in December 2023. This growth reflects continued buyer interest and demand across the region.   

Inventory of Homes for Sale

The number of properties available for sale reached 2,886, a decrease of 11.64% from 3,266 in November. However, inventory remains 19.60% higher than December 2023, when 2,413 homes were on the market. This broader inventory gives buyers more options while maintaining a competitive edge for sellers.

Median & Average Sale Price

Our market shows an intriguing dynamic: while the average sale price has risen significantly, the median sale price remains relatively flat compared to last month and the same period the previous year.

December 2024 saw an impressive average sale price of $946,824, which reflects a 13.88% increase from $831,446 in November and a remarkable 26.56% rise from $748,118 in December 2023. 

The median sale price was $585,000, a slight decline of 2.5% from $600,000 in November but a modest 1.04% increase from $579,000 in December 2023.

This disparity between the average and median sale prices highlights increased activity and higher prices in the luxury segment, as high-end properties pull the average sale price upward. However, the stable median price indicates consistent pricing in the mid-market and entry-level segments, where most sales occur.

Average Days on Market (DOM)

Properties in December 2024 averaged 71 days on the market, an increase of 1.43% from 70 days in November and a 12.70% rise from 63 days in December 2023. Although this is a slight uptick, it still corresponds with the seasonal pace of the market, indicating balanced activity.

New Listings 

December 2024 saw 729 new listings, marking a 33.79% decrease from the strong November figure of 1,101. Nevertheless, this represents a 7.05% increase from 681 new listings in December 2023, indicating growing seller confidence year-over-year.

What It Means For Buyers:

The Coachella Valley real estate market reveals two distinct segments: the luxury market and the more affordable segment. While luxury home sales are driving the average price up, the median price remains stable, indicating a clear disparity between these two markets. Buyers should be aware of this distinction and not be discouraged by the rise in average selling prices.

What It Means For Sellers:

For sellers, the market offers contrasting dynamics between the luxury sector and the general market. While the overall market remains favorable, the luxury market is experiencing unique trends. In the luxury segment, sales have increased significantly, but competition remains particularly fierce, with inventory levels also rising by 19.6% from last year. Homes in this sector tend to spend more time on the market compared to their mid-range counterparts, which means pricing competitively and showcasing properties effectively is crucial.

INTEREST RATES

As of January 15, 2025, mortgage interest rates have been trending upward, with the average 30-year fixed-rate mortgage reaching approximately 6.93%, the highest level since July 2024. Similarly, the average 15-year fixed-rate mortgage has risen to around 6.14%, also the highest since July. For 30-year fixed-rate jumbo mortgages, rates have climbed to approximately 6.98%. These rising rates, driven by factors such as increased bond yields and economic policies, may affect borrowing costs for potential homebuyers.

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.

The number of homes sold across the Coachella Valley shows a generally positive trend compared to last year. Indian Wells leads the growth with a 50% increase in sales, while Palm Desert follows with a 19% rise, reflecting strong buyer activity in these areas. Conversely, Rancho Mirage experienced a 17% decline in sales, making it the only city with a significant decrease. Overall, this data indicates sustained demand in most markets within the region.

Average sale prices reflect a robust luxury market, with La Quinta achieving the highest year-over-year increase of 52%, followed by Palm Springs at 42%. Cities like Rancho Mirage and Indian Wells also posted solid price growth, with increases of 17% and 6%, respectively. In contrast, Coachella saw a 9% decline in average sale price, indicating possible shifts in demand or property mix.

Recent trends in Days on Market (DOM) indicate that homes generally take longer to sell across most cities. Coachella experienced a notable 179% rise in DOM, whereas Indio saw a 14% reduction. Bermuda Dunes and Indian Wells recorded moderate declines of 65% and 14%, respectively, highlighting the differing speeds of the market in various locations.

CITY WATCH - PALM SPRINGS

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) 625-7229, 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.

The Hamilton Real Estate Group is evolving to meet all our customers' real estate needs. If you are ready to sell, call or email us, or for a FREE instant home valuation report, click here: What's My Home Worth?