Is Now a Good Time to Buy or Sell Real Estate in Today’s Political and Economic Climate?
By The Paul Kaplan Group – Your Palm Springs Real Estate Experts

We’ve been hearing the question more and more from clients here at The Paul Kaplan Group:

“Is now a good time to buy or sell a home?”

Given the uncertainty in today’s political and economic landscape, it’s a fair question—and one worth unpacking.

The Current Landscape

We’re in a period of transition. Interest rates remain elevated compared to the historic lows of recent years. Political headlines dominate the news cycle. With everything happening politically and economically- rising interest rates, an insurance crisis and global uncertainty - many homeowners are asking:  Should I sell now or wait?  The economy, while stable in many ways, is still unpredictable in others. All of this can make anyone second-guess their timing in the real estate market.

But despite these factors, real estate activity hasn’t stopped—not even close. People continue to move, downsize, invest, and dream about a lifestyle change. Especially here in the Coachella Valley.

Inventory remains tight - despite higher mortgage rates, California's housing inventory is still low.  According to Realtor.com and the California Association of Realtors, many homeowners are "rate locked" and unwilling to sell their homes with ultra-low mortgage rates.  This keeps supply low, which supports home prices - even amid economic uncertainty. 

While high interest rates have reduced affordability for some buyers, may are still actively shopping - especially those relocating, downsizing or buying with cash.  There's still healthy demand in desirable markets like Palm Springs, especially for well-priced homes in good condition.

Insurance is a new deal-breaker.  One wild card in today's market is home insurance.  Due to wildfires and regulatory challenges, many carriers have exited the California market or significantly raised premiums.  This is impacting both sellers and buyers.  

With Trump's re-election and new tariffs stirring economic and trade uncertainty, some buyers are accelerating their plans to purchase - hoping to lock in deals before the next wave of rate hikes or policy changes.  Meanwhile, global instability and stock market volatility are motivating some investors to shift capital into real estate as a safer long-term asset.

In some regions and even specific neighborhoods, prices are softening due to affordability constraints, especially in high-end or second-home markets.  If you're sitting on strong equity, now might be a good time to cash out near the top before future rate increases or policy shifts impact the market further. 

For Buyers

Yes, rates are higher than a few years ago—but if you’re waiting for the perfect interest rate, you might miss out on your ideal home. Some buyers are tired of waiting and have decided to move forward, locking in today’s rate with plans to refinance later. There are also fewer bidding wars, giving buyers more room to negotiate and more options to choose from.

Additionally, if you’re looking to buy in a second-home market like Palm Springs, remember: lifestyle often drives the decision. If you’re ready to escape cold winters, spend more time outside, or invest in a desert getaway, now might be the right time—regardless of what’s happening nationally.

For Sellers

Inventory is slowly rising, but well-priced, updated homes are still selling quickly. Some even get multiple offers. The key? Presentation and pricing. Buyers are cautious, but they’re also ready to act when a home feels like a good value.

It is a good time to sell?  

YES - if you're ready, if you:

-Need to move for lifestyle reasons

-Want to lock in equity

-Own in a high-demand or low inventory neighborhood

-Can position your property attractively in this evolving market

In today’s market, you don’t need to underprice your home to sell it, but you do need to be realistic. Homes that are turnkey and show pride of ownership continue to stand out.

The Bottom Line

There’s no such thing as a “perfect” time to buy or sell. But your personal goals, timeline, and needs matter more than market noise. If you’re considering making a move, let’s talk through your options and create a strategy that works for you.

At The Paul Kaplan Group, we’ve been helping clients navigate ups and downs in the market for over 25 years. We offer expert advice based on the latest market trends - and we even have an in-house insurance specialist to help with the coverage challenges facing today's buyers and sellers.  

Lets talk about your specific goals and timing.  Whether you’re buying your first home, selling a vacation property, or just exploring possibilities, we’re here to guide you—no pressure, just experience.

📩 Contact us today for a no-obligation chat, or check out our current listings to get a sense of what’s happening in the market right now.  760-459-1396 or [email protected]

Let’s make your next move a smart one.