Cathedral City Single Family Homes Market Update - March 25, 2025

[Marius Olbrych]

Hey Bigger Pockets community! Let’s dive into the latest real estate trends for single-family homes in Cathedral City, CA, as of today, March 25, 2025. Whether you're an investor, homeowner, or just curious about the market, here’s a snapshot of what’s happening, based on the real-time data provided, along with some thoughts to spark discussion.

Key Market Stats

• Median List Price: $625,000
• Median Price of New Listings: $685,000
• Price Per Square Foot: $345
• Average Days on Market: 116 days
• Median Days on Market: 63 days
• Price Decreased: 47% of listings
• Price Increased: 4% of listings
• Relisted: 17% of listings
• Inventory: 151 homes
• Median Rent: $4,000
• Market Action Index: 33 (Slight Seller’s Advantage)

What’s Happening in Cathedral City?

1. Pricing Trends: The median list price is holding steady at $625K, but new listings are coming in higher at $685K. This suggests sellers are testing the waters with more optimistic pricing, possibly banking on continued demand or seasonal buyer interest. However, with 47% of listings seeing price drops compared to just 4% with increases, it’s clear that not all properties are moving at those higher ask prices. Are buyers pushing back, or are sellers overreaching?
2. Days on Market: The average days on market (116) is skewed by some longer-hold listings, but the median of 63 days tells us that half the homes are selling in just over two months. That’s not lightning-fast, but it’s not sluggish either—more of a balanced pace. Properties priced right and in good condition are likely the ones moving quicker. Anyone seeing this in their own deals?
3. Inventory & Market Action: With 151 single-family homes on the market and a Market Action Index of 33, we’re in a slight seller’s advantage zone. Inventory isn’t tight enough to call it a full-blown seller’s market, but it’s not flooding with options either. This could mean opportunities for buyers who act decisively, especially on homes with price reductions.
4. Rental Potential: A median rent of $4,000 is juicy for investors! At $625K median list price, that’s a gross rental yield of around 7.7% before expenses—not bad for a single-family home in a desirable California market. Anyone running numbers on cash flow or cap rates here?
5. Relisting Activity: 17% of listings being relisted hints at deals falling through or sellers pulling back and trying again. Could be financing issues, inspection surprises, or just cold feet—any locals have insights on what’s driving this?

Conclusion

The Cathedral City single-family home market is showing a balanced yet slightly seller-leaning dynamic as of March 2025. Sellers have a slight edge with moderate inventory and decent rental demand, but the high percentage of price decreases suggests buyer resistance to overly ambitious pricing. For investors, the rental yield looks promising, especially if you can snag a deal on a price-reduced property. Buyers might find room to negotiate, while sellers need to price competitively to avoid sitting on the market too long. Overall, it’s a market with opportunities on both sides—patience and strategy will be key.

Let’s Talk, Bigger Pockets!

• Investors: Are you eyeing Cathedral City for rentals or flips? What’s your take on that $4K median rent?
• Homeowners: How are you feeling about the market—confident to list, or waiting it out?
• Agents: What trends are you seeing on the ground? Are those price drops leading to quick sales?
• Newbies: Does this data make you more or less interested in jumping into this market?

Drop your thoughts, experiences, or questions below—let’s get the conversation rolling and help each other navigate this market!