Coachella Valley Real Estate Starts 2025 With A Strong January Showing

February 12, 2025

The Paul Kaplan Group in Palm springs is happy to report continuing strong momentum from December 2024, the January 2025 Coachella Valley real estate market, which kicked off the year with marked increases in activity, inventory, and the median sale price. Keep reading to learn about the major trends happening across the Greater Palm Springs Area real estate market. As a reminder, the figures referenced in our analysis cover the desert area resort region, stretching from Palm Springs to Indio. If you are interested in a specific city or neighborhood, contact your local Bennion Deville Homes real estate professional. Our Coachella Valley real estate agents have access to a wealth of tools and information that can help you make an informed decision about your next steps in the real estate market. We will unlock possibilities for you.

Although January kicks off the New Year, the desert real estate market saw many of the same positive trends carry over from December into the first month of 2025. Riding a wave of momentum, home sales stayed robust, along with more Palm Springs area homes for sale than the prior year. In addition to growing inventory and sales activity, the median home price saw a significant bump, while the sale to list price ratio increased, indicating sellers are receiving closer to asking price than the monthly and annual comparison periods. Despite rising inventory and sales numbers, the months of inventory figure increased by nearly a month, indicating the market could be turning into a buyer’s market. However, with strong sales numbers, fortified home prices, a reduced listing discount, and a still speedy average days on market figure, the desert market appears to be on sustainable, stable footing leading into the peak of our primary sales season. Whether you are ready to make your move now, or you are considering your options, Bennion Deville Homes is here to help you navigate the market and make the best decision for your situation.

There were 564 homes sold in January 2025, a 4.1% annual increase and a 0.5% bump from December 2024. The median sale price for a Greater Palm Springs home was $649,500, a 12% surge year-over-year and an 8.4% monthly jump. The median sale price per square foot wrapped the month at $350, a 2.9% uptick from the previous year and a 3.2% increase over December. The sale pace, noted as average days on the market, ended at 60 days, the same figure from the previous year and a 1.7% upward nudge month-over-month. The listing discount, calculated by dividing the sale price by the list price and subtracting from 100, ended the month at 3.3%, or 96.7% of the list price, a 0.1% uptick year-over-year and a 1.2% bump on a monthly basis. This figure indicates sellers are receiving closer to asking price than in the comparison periods. The month finished with 3,749 active homes on the market, a 17.8% leap compared to January 2024 and a 5.1% increase over December 2024. Overall, there is a 6.1-month supply of inventory to meet market demand, a 22% annual increase and a 15.1% monthly increase. A 6-month supply of homes is traditionally considered a balanced market. The gains in inventory levels (supply) outpaced sales activity (demand) in January, which pushed this key metric up. However, as indicated previously, growing prices, increasing sales activity, and a steady listing discount indicate sellers still have plenty of leverage in the market.

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