As we close the second quarter of 2026, the Greater Palm Springs real estate market continues to demonstrate remarkable resilience despite entering the desert's traditional low season. While seasonal shifts naturally slow activity during the warmer months, the data tells a much more balanced story than many buyers and sellers expect.

Quarter 2 historically represents the transition from our busy winter selling season into summer, when many seasonal residents return home and tourism slows. Yet this year's numbers reveal a market that remains healthy, supported by steady pricing, motivated buyers, and continued confidence in Greater Palm Springs real estate.

Perhaps most encouraging is that 2026 has outperformed 2025 in several important categories, indicating the market has found a healthy equilibrium after several years of rapid post-pandemic adjustments.

Q2 2026 Market Snapshot

Average Sold Price Continues to Hold Near Record Highs

One of the biggest takeaways from Quarter 2 is how remarkably stable home prices have remained.

The average sold price reached $905,327, representing only about a 2.2% decline from Q2 2025's record average of $926,040. Considering today's higher interest rates, increased inventory, and more balanced market conditions, this modest adjustment illustrates just how desirable Greater Palm Springs continues to be.

Luxury properties continue to support overall pricing, while move-up buyers and retirees remain active throughout the valley.

Rather than signaling weakness, this slight correction reflects a healthier market where pricing is becoming more sustainable.

Key Insight

• Prices remain approximately 85% higher than they were in 2018.
• Values continue to stabilize rather than decline.
• Sellers who price strategically are still achieving strong results.

Buyers Are Negotiating More Than During Peak Pandemic Years

The Sold-to-List Price Ratio declined slightly to 93.85%, compared with 94.20% in 2025.

This means buyers are negotiating modestly more than last year, but nowhere near the discounts commonly associated with a buyer's market.

During the extraordinary market of 2021 and 2022, many homes sold over asking price as inventory reached historic lows. Today's environment is far healthier.

Instead of bidding wars, buyers have:

• More inventory
• More negotiating opportunities
• More time to make decisions
• Better inspection flexibility

For sellers, pricing correctly has become increasingly important, as buyers are carefully comparing properties before making offers.

Homes Are Taking Longer to Sell

Average Days on Market increased from 66 days in 2025 to 72 days in 2026.

Although this represents a slower pace, it aligns perfectly with normal seasonal trends.

Unlike the frantic pace of 2021 and 2022, today's buyers are taking more time to evaluate homes, financing options, and neighborhood choices.

Longer marketing times should not be viewed negatively.

Instead, they indicate:

• More balanced negotiations
• Fewer rushed purchases
• Better-qualified buyers
• More stable transactions

For sellers, patience and proper marketing have become more valuable than ever.

Home Sales Show Signs of Recovery

Perhaps one of the most encouraging statistics is that the number of homes sold actually increased over last year.

• 2025: 2,099 homes sold
• 2026: 2,177 homes sold

That represents approximately a 3.7% increase in closed sales.

After several years of declining transaction volume, this is an encouraging sign that buyers continue entering the market despite elevated borrowing costs.

This suggests demand remains healthy and that motivated buyers are still making purchasing decisions.

Sales Volume Continues to Grow

Total sales volume increased from:

• 2025: $1.94 Billion
• 2026: $1.97 Billion

This represents roughly a 1.4% increase year over year.

While average pricing dipped slightly, the increase in total transactions more than compensated, resulting in higher overall market volume.

This is often a hallmark of a healthy real estate market:

• More buyers participating
• Stable pricing
• Consistent luxury activity
• Healthy transaction flow

Looking at the Long-Term Trend (2018–2026)

Quarter 2 data over the last nine years illustrates just how dramatically the Greater Palm Springs market has evolved.

Average Home Prices

Home values have risen from $489,852 in 2018 to more than $905,000 today, an increase of nearly 85%.

Inventory Has Normalized

Days on Market reached historic lows during the pandemic but have gradually returned toward historical averages.

Sales Activity Has Stabilized

Although transaction counts remain below the exceptional highs of 2021, activity has stabilized over the past three years.

Dollar Volume Remains Strong

Nearly $2 billion in residential real estate changed hands during Quarter 2 alone, highlighting the valley's continued strength as one of Southern California's premier housing markets.

What Buyers Can Expect This Summer

July through September represents Greater Palm Springs' traditional low season.

For buyers, this can be one of the most advantageous times to purchase.

Benefits include:

• Less competition
• More negotiating power
• Greater inventory selection
• Flexible sellers
• More favorable inspection timelines

Many seasonal sellers remain motivated throughout the summer, creating opportunities that often disappear once winter demand returns.

What Sellers Should Know

While activity naturally slows during summer, serious buyers remain active.

Today's successful sellers are focusing on:

• Competitive pricing
• Professional photography and video
• Strong online marketing
• Flexible showing availability
• Excellent property presentation

Homes that are well-priced continue attracting strong interest, even during the warmest months.

The market hasn't stopped—it has simply become more strategic.

What Quarter 2 Is Telling Us About the Desert Market

Quarter 2 demonstrates that the Greater Palm Springs housing market is transitioning into a more sustainable and balanced environment.

We're seeing:

• Stable home values
• Slightly longer marketing times
• Increased buyer negotiating power
• More completed transactions
• Higher overall sales volume
• Continued confidence in desert real estate

Rather than experiencing dramatic swings, the market is settling into healthier long-term conditions that benefit both buyers and sellers.

For homeowners, this stability helps preserve equity while encouraging sustainable appreciation.

For buyers, improved inventory and reduced competition create excellent opportunities to purchase before seasonal demand returns later this year.

Final Thoughts

The Greater Palm Springs real estate market continues to outperform expectations.

Even as we enter the desert's quieter summer months, prices remain near historic highs, sales volume is increasing, and buyer demand continues to support a healthy marketplace.

Whether you're considering buying, selling, investing, or simply staying informed, Quarter 2 confirms that our local market remains one of Southern California's strongest and most resilient real estate markets.

As we move into Quarter 3, expect activity to become more selective, with serious buyers taking advantage of seasonal opportunities while sellers who price and market effectively continue to achieve successful results.

The numbers suggest that while the pace may slow during the summer, the Greater Palm Springs market remains fundamentally strong—and well-positioned for the busy fall and winter selling seasons ahead.