Hey, BiggerPockets community!
Whether you’re an investor eyeing the desert sands or a homeowner curious about the market, I’ve got the latest scoop on the Coachella Valley real estate scene as of February 25, 2025.
As a featured agent on BiggerPockets, I’m diving into the numbers across the nine cities—Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, Indio, Coachella, and Desert Hot Springs—covering days on market, escrow fallout rates, price drops, relisted properties, new-to-market inventory, and overall stock levels. Let’s break it down and see where the opportunities lie!
Inventory Levels: A Buyer’s Window OpensThe Coachella Valley is seeing a noticeable shift in inventory. As of early 2025, the total number of available homes across the valley sits at around 2,898 units—a jump of 759 homes compared to last year. Palm Springs leads the pack with 548 homes on the market (up from 383 in 2024), while Palm Desert and La Quinta follow with strong numbers, historically hovering around 509 and 372, respectively, based on mid-2024 trends. This uptick brings the valley’s “months of sales” ratio to 4.8 months, a balanced market leaning slightly toward buyers—especially in pricier spots like Indian Wells, where it’s hitting 8.9 months. Pre-pandemic norms are back in sight, giving investors more options to negotiate than we’ve seen in years.
Days on Market: Patience Pays OffHomes aren’t flying off the shelf as fast as they once did. The valley-wide median days on market is now 67 days, a significant increase from last year’s 41 days. Bermuda Dunes is the speedster at 33 days, while Palm Springs clocks in at 37 days, and Cathedral City lags at 49 days. This slower pace signals buyers can take their time scouting deals—great news for flippers or landlords looking to snag a property below asking. Sellers, though? You might need to price competitively to avoid sitting too long.
Fallout of Escrow Rate: Deals StumblingEscrow fallouts are creeping up, reflecting buyer caution. While exact valley-wide figures fluctuate, recent reports suggest a 10-15% fallout rate across the nine cities, with Palm Springs and Rancho Mirage seeing slightly higher numbers due to their luxury skew. Economic uncertainty—think interest rates hovering around 7% for a 30-year fixed—and picky buyers are driving this trend. For investors, this means more properties might circle back to the market, ripe for a second look.
Price Drops: Discounts EmergePrice reductions are becoming the norm as inventory rises. Detached homes across the valley are selling at an average discount of 2.3% off list price, with Palm Springs and Rancho Mirage topping out at 3.2%. Attached homes are slightly higher at 2.7%. Coachella and Indio offer the smallest discounts at 1.5%, showing resilience in the entry-level segment. The median detached home price has dipped to $653,726 valley-wide, down from a peak of $710,000 last summer. Palm Springs detached homes average $1.2 million, a slight 0.4% drop since late 2023. This cooling could be your chance to lock in a deal before the spring rush.
Relisted Properties: Second Chances AboundRelistings are on the rise as fallouts and overpriced listings return. In Palm Springs, about 10% of the 548 active units are relisted from late 2024, with similar patterns in Palm Desert and La Quinta. These homes often come back at lower prices—sometimes 5-10% below their original ask—making them prime targets for savvy investors. Keep an eye on Cathedral City and Indio, where relistings are ticking up in the sub-$500,000 range, perfect for rental plays.
New to Market: Fresh Inventory HitsNew listings are fueling the inventory surge. Valley-wide, we’re seeing a 26% increase in active listings (2,354 units as of October 2024, trending toward 2,898 now). Palm Springs added over 100 new homes since last year, while La Quinta and Indian Wells are bringing luxury options online. Coachella and Indio lead new construction, with affordable homes still trickling in despite supply chain hiccups. This fresh stock offers investors a mix of move-in-ready flips and long-term holds—especially as 13.1% of homes still sell above list price in competitive pockets.
What This Means for YouFor buyers and investors, the Coachella Valley is shifting into a more negotiable market. Higher inventory, longer days on market, and price drops signal opportunity—whether you’re chasing a Palm Springs mid-century gem or an Indio rental cash cow. Sellers, meanwhile, need to price sharp and stage smart to beat the relisting trap. The luxury segment (over $1M) remains steady in Rancho Mirage and Indian Wells, but entry-level and mid-tier homes are where the action’s at.
