Over the past eight years, the Greater Palm Springs real estate market has experienced nearly every phase of a full market cycle from steady growth to unprecedented expansion, followed by a necessary correction and, most recently, stabilization.
Looking at the annual data from 2018 through 2025, one thing is clear: 2025 wasn’t a slowdown year, it was a reset year. And resets are often what set the stage for the next wave of opportunity.
Below is a breakdown of how 2025 compares to prior years and what this data suggests we can expect as we move into 2026.
Pricing: A Market That Refused to Give Back Gains
Average sold prices continued their long-term upward trend in 2025, reaching $882,793, the highest annual average on record.
To put that in perspective:
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2018 average price: $471,620
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2021 pandemic surge: $691,952
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2022 peak pricing: $833,594
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2025: $882,793
Even after interest rate hikes and affordability pressures, prices never meaningfully retraced. Instead, they plateaued and then moved higher, signaling strong underlying demand, limited supply, and long-term confidence in the desert market—especially for second-home and lifestyle buyers.
Key takeaway: The desert market has proven its ability to hold value even in changing economic conditions.
Negotiation Power: Balance Has Returned
The sold-to-list price ratio in 2025 landed at 94.55%, compared to:
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Over 100% in 2021
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Nearly 100% in 2022
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Mid-95% range in 2023–2024
This shift doesn’t indicate weakness, it indicates normalization. Buyers have regained room to negotiate, while sellers must price and position their homes more strategically.
This is what a healthy market looks like.
Days on Market: A More Thoughtful Buyer Pool
Average days on market increased to 66 days in 2025, up from:
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33 days in 2022
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54 days in 2023
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59 days in 2024
Today’s buyers are more intentional. They’re taking time to compare options, evaluate value, and move forward with confidence rather than urgency.
For sellers, this reinforces the importance of:
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Correct pricing from day one
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Strong presentation
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Smart marketing exposure
Sales Activity: Stability After the Reset
Total homes sold in 2025 reached 7,466, slightly higher than both 2023 and 2024.
While this is well below the pandemic-era peak of 2021, it reflects a market that has:
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Absorbed higher interest rates
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Adjusted to new affordability norms
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Found a sustainable level of activity
Even more telling is total sales volume, which grew 6.22% year over year in 2025, following a positive increase in 2024 as well.
After two years of contraction (2022–2023), the market is clearly moving forward again.
What This Means Going Into 2026
Based on this data, here’s what we can reasonably expect heading into 2026:
1. Continued Price Stability With Modest Growth
Prices are unlikely to spike the way they did in 2020–2022, but the data strongly suggests they won’t pull back either. Expect measured appreciation, especially in well-located, well-maintained properties.
2. More Confident Buyers
As rate volatility settles and buyers adjust expectations, confidence improves. Many buyers who paused in 2023–2024 are already re-entering the market and that momentum should carry into 2026.
3. Strategy-Driven Sellers Will Win
Homes that are priced correctly, marketed well, and professionally represented will continue to sell. Overpriced or poorly positioned listings will sit longer but well-executed homes still move.
4. A Market Built for Opportunity, Not Hype
The next phase of this market favors informed decisions, not emotional ones. This is an ideal environment for:
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Move-up buyers
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Second-home purchasers
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Long-term investors
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Sellers looking to capitalize on sustained equity
Final Thought: 2025 Was the Bridge Year
If 2021 and 2022 were about speed, and 2023 was about adjustment, 2025 was about balance.
The desert market has recalibrated and it’s entering 2026 on stable footing, supported by long-term demand, limited supply, and a buyer pool that’s more prepared than reactive.
For those considering buying or selling in 2026, the data suggests one thing clearly:
This is a market that rewards planning, timing, and smart strategy.
