Palm Springs to Coachella - Market Shift: Buyers Gaining the Upper Hand?

[Marius Olbrych]

The Coachella Valley real estate market is showing some interesting shifts this year. Here’s a breakdown of key trends for February 2025, comparing them to both last month and February 2024.

📈 Inventory & Supply

• Total inventory sits at 2,753, which is up 14.8% YoY from 2,399 in February 2024.
• Months of supply has increased to 6.5 months, a 17% jump from last year, signaling a more balanced market that is trending toward buyer-friendly conditions.
• New listings dropped to 909 in February, down 19.8% from January, which could tighten supply in the coming months.

🏡 Sales & Pricing

• 430 homes sold in February, a slight 1.6% decrease YoY but up 7.5% from last month.
• The median sale price is $710,000, which reflects a 4.1% decline from last year ($740,000) and a 1.7% dip from January.
• Price per square foot sits at $464, slightly down 0.9% YoY but up 1.7% from last month.

⏳ Market Time & Buyer Activity

• Days on market rose to 71 days, a 22.4% increase from January and up 12.7% from last year.
• Homes going under contract surged by 51.5% YoY, suggesting buyers are still active despite longer market times.
• The sales-to-list price ratio remains steady at 96.8%, indicating sellers are negotiating but still closing close to asking price.

🔎 Key Takeaways

• Buyers: With inventory increasing and prices softening, there are opportunities to negotiate better deals, especially on homes that have been sitting longer.
• Sellers: With higher days on market, strategic pricing is key to attracting serious buyers.
• Investors: The increase in homes under contract (+51.5%) suggests buyer confidence is returning, which could lead to stronger demand heading into the spring.

The market remains balanced but

is shifting toward a buyer-friendly environment, making Q2 2025 a crucial time to watch for opportunities.

What are you seeing in your local deals? Have you noticed more price reductions or increased competition?