Premium Properties Drive Price Growth as Sales Soften in the Coachella Valley

The Coachella Valley real estate market has entered 2026 with a blend of resilience and recalibration. While January typically brings a slower pace following the holiday season, this year's data reveals deeper market dynamics at play—sales volumes have contracted across nearly every desert community, yet pricing fundamentals remain remarkably strong, particularly in the luxury sector. Properties are spending more time on the market, inventory levels have risen modestly, and buyers are finding themselves with enhanced negotiating leverage.

SALES TRENDS

Number of Homes Sold

In January 2026, 408 properties were sold in the Coachella Valley. This represents a 23% decline from December's 530 transactions and a 17.2% decrease from the 493 homes sold in January 2025. While these numbers reflect typical seasonal patterns following the holiday period, the year-over-year comparison indicates a more measured pace of sales activity as we enter the new year.

Inventory of Homes for Sale

Our current inventory stands at 3,517 properties available for sale, marking a 7.3% increase from December's 3,278 listings. Compared to January 2025's inventory of 3,732 homes, we're seeing 5.8% fewer properties on the market. This inventory level translates to 8.62 months of supply, which suggests we're starting to move into a buyers market. 

Median & Average Sale Price

The market continues to demonstrate strength in pricing metrics. 

The median sales price reached $625,000 in January, up 2.5% from December's $609,498 and showing only a modest 3.1% decline from January 2025's $645,000. More notably, the average sales price climbed to $1,022,991, representing an impressive 10.8% increase from December and an 8.6% gain from last January. 

These figures reflect sustained demand in our premium property segments.  

Average Days on Market (DOM)

Properties are taking slightly longer to sell, with the average days on market reaching 82 days in January. This represents a 15.5% increase from both December's 71 days and January 2025's 71 days. This indicates that buyers have more choices and are taking time to make informed decisions.

New Listings 

January brought 1,315 new listings to our market, a substantial 71.9% jump from December's 765 new listings as sellers returned from the holiday season. However, this figure is 12% lower than the 1,495 new listings we saw in January 2025. This suggests sellers may be taking a more measured approach to listing their properties, which could support continued price stability throughout the year. 

What It Means For Buyers:

For buyers, the current market conditions present a window of opportunity. With inventory levels up over 7% from last month and 8.62 months of supply available, you'll have more properties to choose from and additional time to make thoughtful decisions. The extended days on market—now averaging 82 days—means sellers are more willing to negotiate on price, terms, and contingencies. While mortgage rates remain favorable in the low 6% range, the combination of increased selection, motivated sellers, and enhanced negotiating leverage makes this an excellent time to enter the market.

What It Means For Sellers:

For sellers, the data reinforces the importance of strategic pricing and exceptional presentation. While the market remains fundamentally strong—with median prices holding steady at $625,000 and average prices reaching record levels over $1 million—the 23% decline in sales volume from December and the 15% increase in days on market indicate that buyers are more selective. Properties that are priced competitively from day one, professionally staged, and marketed effectively continue to attract strong interest and sell successfully.

INTEREST RATES

Mortgage interest rates remain highly favorable for homebuyers and those considering refinancing, with the 30-year fixed rate averaging approximately 5.87% to 6.09%, while 15-year fixed mortgages are available around 5.25% to 5.44%.

For jumbo mortgages exceeding $832,750, rates are currently averaging 6.43%. These rates represent three-year lows and offer significant advantages compared to the higher rates experienced throughout much of 2024 and early 2025. With the Federal Reserve maintaining its current stance and no meeting scheduled until March, the rate environment is expected to remain relatively stable in the near term.  

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.

All major markets experienced year-over-year sales declines last month. Palm Desert led the region with 99 homes sold, despite a 12% decrease from last year, followed by La Quinta with 81 transactions (down 10%) and Palm Springs with 62 sales (down 18%). The most dramatic declines occurred in smaller markets, with Bermuda Dunes experiencing a 63% drop to just 3 sales, Coachella down 33% to 4 sales, and Cathedral City falling 37% to 24 transactions. Indian Wells and Rancho Mirage also saw notable decreases of 29% and 12%, respectively.

Pricing trends paint a mixed picture across the valley, with luxury markets showing remarkable strength. Indian Wells commanded the highest average sale price at $2,117,308, up an impressive 28% year-over-year, while La Quinta followed at $1,534,340 with a 6% increase. Bermuda Dunes averaged $1,088,300 (up 3%), Rancho Mirage $1,061,482 (down 8%), and Palm Desert $973,587 (up 9%). Meanwhile, more accessible markets showed strong gains, with Indio jumping 38% to $730,707 and Coachella rising 12% to $532,750. Notably, Palm Springs prices remained flat at $919,712, while Desert Hot Springs declined 11% to $377,029, and Cathedral City held steady at $522,177.

Properties are taking longer to sell throughout the valley, with Cathedral City experiencing the most dramatic increase at 120 days on market, up 74%. La Quinta follows at 94 days (up 27%), while Palm Desert and Indian Wells both averaged 82-83 days. Rancho Mirage bucked the trend with a 24% decrease to 78 days, while Indio remained relatively quick at 63 days. The fastest-moving market was Coachella at just 37 days, though small sample sizes in some markets make the data less statistically significant.

CITY WATCH - LA QUINTA

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. 

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