T
he latest Desert Housing Report for October 2024 paints a mixed picture of the Palm Springs housing market, echoing regional trends of declining home prices and sales. However, there's a glimmer of hope with a slight increase in inventory levels.

    Palm Springs saw a notable 8.7% year-over-year decline in median detached home prices, bringing the average price down to around $1.13 million. This six-month downward trend has pushed the overall median price for detached homes in the Coachella Valley to $634,990.

    Despite this, Palm Springs recorded 91 sales over the past three months, a slight decrease from the previous year. However, the city remains more active than most neighboring areas, except for Palm Desert. As of November 1, the Coachella Valley's inventory stood at 2,824 units, up significantly from last year but still below pre-pandemic levels.

    Palm Springs saw an increase in available homes, with 652 properties on the market compared to 543 last year. This shift towards greater supply could influence future pricing. Homes in Palm Springs are now spending an average of 46 days on the market, a decrease from last year's faster sales times.

    The report suggests that the balance of supply and demand in Palm Springs is adjusting to current economic conditions. National economic policies, particularly mortgage rates, may have a significant impact on the market's trajectory into 2025. Market observers believe that inventory stabilization could play a crucial role in the market's performance over the next few months.