The Hamilton Real Estate Group August 13, 2025
The Coachella Valley real estate market displayed a combination of momentum and moderation in July, with clear signs that both buyers and sellers are adapting to changing market conditions. While some areas saw strong gains in home prices, overall sales activity dipped across much of the region, and homes are taking longer to sell compared to a year ago. In this update, we break down the latest trends in home sales, pricing, and days on market across the desert’s major cities.
A total of 497 homes were sold last month, reflecting a slight decrease of 3.31% compared to June, when 514 homes closed escrow. The number of homes sold has dipped by 3.50% year-over-year, with 515 sales recorded in July 2024. Despite the slight decrease in sales volume, buyers remain active and engaged, suggesting that they are still pursuing their home-buying goals.
The number of homes listed for sale in July stood at 2,878. This is a notable 14.45% decrease from June’s inventory of 3,364 homes, yet it represents a healthy 10.61% increase from July 2024, when there were 2,602 homes on the market. This year-over-year growth in inventory provides buyers with more options while requiring sellers to be more thoughtful about pricing their home to sell.
In terms of pricing, the average sales price in July 2025 was $796,942. Although this figure declined by 6.48% from the prior month’s average of $852,186, it still represents a strong 9.44% increase from $728,231 in July 2024.
The median sales price for July was $559,000, down 6.83% from June’s median of $600,000 and 3.62% lower than the $580,000 median recorded in July of last year.
While we’re seeing some softening on a month-over-month basis, the year-over-year increase in the average sale price suggests continued buyer demand, particularly in mid- to upper-tier segments of the market.
The average number of days on market rose slightly in July, reaching 82 days. This marks a modest 2.5% increase from June’s average of 80 days and a more significant 22.39% increase compared to 67 days in July 2024. Homes are taking a bit longer to sell, which is not uncommon during the summer season and can reflect a shift toward more measured, intentional decision-making on the part of buyers. For sellers, this emphasizes the importance of pricing homes correctly and presenting them in the best possible light to attract attention in the current market.
Last month the real estate market experienced a 5.85% decline in new listings, with 756 new listings added compared to the 803 new listings in June. However, this number represents an 8.15% increase compared to the 699 new listings in July 2024. The growth in new listings year-over-year suggests sustained seller confidence as home prices remain steady and and show continued signs of growth in some cities.
For buyers, the current Coachella Valley market offers a promising window of opportunity. With inventory levels up over last year and homes taking slightly longer to sell, buyers have more choices and a bit more negotiating power than in previous months. While average prices remain higher year-over-year—indicating strong long-term value—recent month-over-month price softening may create room for well-timed offers. It’s a favorable moment for serious buyers to find the right home without the intense competition we’ve seen in past markets.
For sellers, the Coachella Valley market remains encouraging, especially for those who approach it strategically. While homes are taking slightly longer to sell and buyers are being more selective, average sale prices are still up compared to last year—reflecting continued buyer interest and strong property values. With inventory levels lower than last month, well-prepared homes that are priced correctly and marketed effectively are standing out and selling successfully.
As of mid-August 2025, mortgage interest rates have edged lower but remain relatively elevated. The 30-year fixed-rate conforming mortgage averages around 6.66%, down slightly from early July. The 15-year fixed sits at approximately 5.86%, holding steady compared to mid‑July. Meanwhile, the average 30-year fixed jumbo loan is around 6.65%, marking a modest decline over the past few weeks. Although still high compared to recent years, these rates have stabilized, offering greater predictability for buyers planning their financing strategies.
The numbers for each major city in the area give a better view of the trends in our market.
Sales activity across the Coachella Valley varied significantly by city. Palm Desert led with 108 homes sold, despite a 10% decline from the same period last year. La Quinta followed with 85 homes sold, maintaining level activity year-over-year, while Palm Springs saw a notable 36% increase, closing 80 transactions. Indian Wells also posted a positive gain with an 8% increase and 14 homes sold. Meanwhile, several cities saw declines in activity, including Cathedral City (-30%), Rancho Mirage (-16%), Bermuda Dunes (-25%), and Coachella, which experienced the steepest drop at -67%, with only four homes sold.
Price trends showed strength in several key markets, with Indian Wells leading the way. The city saw an impressive 133% jump in its average sale price, reaching $2,616,786. Palm Springs and La Quinta also recorded solid gains of 25% and 14%, with average prices of $775,676 and $1,128,676, respectively. Other areas with notable increases included Bermuda Dunes (14%) and Coachella (42%). However, pricing softened in some cities, with Desert Hot Springs, Palm Desert, and Indio reporting decreases of 6%, 7%, and 14%, respectively.
Across the valley, homes generally took longer to sell than they did a year ago. Indian Wells had the highest DOM at 138 days, a 38% increase. Palm Desert homes averaged 88 days on market (up 21%), while Palm Springs and La Quinta both posted 86 days, up 43% and 30% respectively. Even cities with smaller markets such as Bermuda Dunes (81 days) and Coachella (60 days) saw DOM increases of 19% and 15%. The upward trend in DOM across nearly all cities suggests a shift toward a more balanced market.
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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