Sales Cool and Inventory Tightens as Coachella Valley Prices Hold Steady
The Hamilton Real Estate Group October 17, 2026
The Hamilton Real Estate Group October 17, 2026
September brought fewer closings to the Coachella Valley, a shrinking supply of homes for sale, and prices that barely moved. Buyers still have opportunities, but the market is asking for patience from both sides of the table. Sellers who price realistically continue to get results, and buyers have room to negotiate as winter approaches. Below you will find the September numbers, what they mean for you, where mortgage rates stand, and how each city performed.
A total of 379 homes sold in the Coachella Valley in September, down 15% from 447 in August and down 15% from 444 in September of last year. That is the lowest September total of the past three years. Rising borrowing costs have made some buyers more cautious and others are simply waiting for the right home at the right price. Well-priced homes are still selling, but buyers are being more selective in this market.
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Active listings stood at 2,775 in September, up 3% from 2,706 in August but down 15% from 3,265 a year ago. Supply edged up from the summer low, yet it remains the lowest September inventory of the past three years. Buyers have fewer homes to choose from than they did last fall, a key factor that is keeping home values steady.
The median sale price was $545,000 in September, down 1% from $549,500 in August and down 1% from $549,000 a year ago. The average sale price was $785,930, up 3% from $762,103 in August but down 2% from $799,670 a year ago. The median held nearly flat while the average rose from August, which likely reflects a few more higher priced homes in the monthly mix. Overall, pricing is stable to slightly softer, not falling.
Average price per square foot came in at $350 in September, up 1% from $346 in August and down 2% from $358 a year ago. This measure removes the distortion that home size and product mix create, which makes it a cleaner read on value. The trend shows modest softening over the past year, with a small rebound from August.
Homes took an average of 87 days to sell in September, down 7% from 94 days in August and up 1% from 86 days a year ago. The year-over-year change is small, but it shows buyers are taking their time. Sellers should plan for roughly two to three months on the market and price accurately from day one, because overpriced listings sit.
Homes sold for 97% of list price in September, the same as August and the same as a year ago. A ratio just under 100% means sellers are pricing close to market while buyers keep modest negotiating room. This number has remained fairly consistent over the last few months, showing that homes priced to fair market value are still selling a close to asking.
More homes became available for sale, with 967 new listings in September, up 29% from 750 in August but down 6% from 1,027 a year ago. The monthly jump shows fall listing activity picking up, a trend that is consistent almost every year as we move into high season here in the desert. The yearly dip means the pipeline of fresh supply remains thinner than last year, which keeps overall inventory limited heading into winter. But you can anticipate a continued rise in inventory as we move into the new year.
Buyers hold more leverage than they did in prior years. Homes are taking about three months to sell and closing near 97% of list price, which leaves room to negotiate on price and concessions. Supply is less than last year, though, so the best homes in the best locations still move quickly. Get pre-approved, know exactly what you want, and be ready to move on a well priced listing. Prices have been stable while rates have climbed, so waiting for a dramatic price drop is a risky plan.
Pricing is the deciding factor this fall. Buyers have time and options, and homes are averaging 87 days to sell. Overpriced homes sit and eventually sell for less. Price to current comparable sales, not last year's peak, and make sure your home is in good condition and shows well. Inventory is down 15% from last year, which works in your favor when your home is priced correctly and shows well. Listing in the coming weeks puts your home in front of buyers who return to the valley for the winter season.
Freddie Mac reported the 30-year fixed rate at 7.4% for the week of October 15. The 15-year fixed rate was 6.7%, down slightly from the week before. The 30-year jumbo rate averaged 7.6%, according to Mortgage Research Center. The 30-year rate is up from 6.3% a year ago and sits near its highest level in almost three years, though it paused after seven straight weekly increases.
Sales dropped in every city in the Coachella Valley except for Indio, up 21% with 81 closings, and Coachella, up 33%, with only 8 sales. Palm Desert led the major markets with 80 sales, down just 10%, and La Quinta slipped 8% to 65. Steeper declines hit Cathedral City (down 27%), Rancho Mirage (down 22%), Palm Springs (down 32%), and Desert Hot Springs (down 39%). Indian Wells (down 40%) and Bermuda Dunes (down 29%) each had 6 or fewer sales, so interpret those numbers with caution.
Average sale prices varied quite a bit across the valley Last month. La Quinta rose 27% to $1,431,998, and that gain carries weight because it rests on 65 sales, though more luxury home sales likely played a role. Indian Wells (up 29% to $1,367,083) and Bermuda Dunes (up 15% to $732,000) posted gains on very few sales, so they likely reflect a different mix of homes sold rather than appreciation. Indio held flat at $557,430. Declines ran from 12% to 19% in Cathedral City, Palm Springs, Desert Hot Springs, Palm Desert, and Rancho Mirage, while Coachella eased 4%.
Coachella (38 days, down 27%) and Cathedral City (70 days, down 27%) moved fastest compared with last year. Indian Wells (89 days), La Quinta (91 days), and Palm Springs (91 days) also sold slightly faster. Homes sat longer in Bermuda Dunes (133 days, up 34%), Rancho Mirage (110 days, up 26%), Desert Hot Springs (65 days, up 20%), and Palm Desert (102 days, up 17%), with Indio up 3% to 73 days.
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