The Greater Palm Springs / Coachella Valley real estate market is often defined by seasonality, lifestyle demand, and luxury influence. But when we step back and compare January 2026 to January 2025, we gain clarity on where the market is truly headed.

The numbers reveal something important:

The market is slower — but prices are stronger.

Let’s break down what that really means.

Coachella Valley Year-Over-Year Comparison

What the Data Really Shows

1️⃣ Fewer Homes Sold — But Higher Prices

Total sales decreased by 9.3% year over year. That means transaction activity has slowed.

However, average sold price increased by 6.6%.

This tells us:

• Buyer demand has not disappeared.

• Higher-end homes are making up a larger share of the market.

• Sellers are still achieving strong pricing when positioned correctly.

This is not a declining market. It’s a more selective market.

2️⃣ Negotiation Is Back

The sold-to-list ratio dipped from 95.54% to 94.79%.

While that may seem minor, it reflects meaningful leverage returning to buyers.

On a $1,000,000 home:

• January 2025 average discount: ~$44,600

• January 2026 average discount: ~$52,100

That’s nearly $7,500 more in negotiating room compared to last year.

We are clearly no longer in the urgency-driven environment of the pandemic years.

3️⃣ Homes Are Taking Longer to Sell

Average days on market increased from 58 days to 68 days.

This confirms:

• Buyers are more deliberate.

• Overpricing is being penalized.

• Pricing strategy and presentation matter more than ever.

The desert market is transitioning from speed to strategy.

City-Level Observations

Palm Desert

Remains the valley’s most liquid submarket with strong transaction volume and increasing average prices.

La Quinta

Luxury remains active, with higher average pricing year over year.

Indian Wells

Significant jump in average sales price, reinforcing continued strength in the luxury tier.

Palm Springs

Slight moderation in pricing and sales pace compared to 2025, reflecting broader normalization.

The Big Picture: Normalization, Not Decline

The shift from January 2025 to January 2026 shows:

• Fewer transactions

• Higher average price

• Longer marketing times

• Slightly increased negotiation

• Continued strength in the luxury segment

This is what a stabilizing market looks like.

It is not a downturn.
It is not a crash.
It is not overheated.

It is balance returning.

What This Means Heading Into Spring 2026

Spring is traditionally the strongest season in the Greater Palm Springs real estate market. Based on current data:

For Buyers:

• More negotiating leverage

• More inventory choices

• Less competitive pressure

• Strong opportunity in luxury and mid-range markets

For Sellers:

• Serious buyers are still active

• Pricing precision is critical

• Properly positioned homes will sell

• Overpricing will extend time on market

As we move deeper into peak desert season, the homes that show best and are priced accurately will capture demand.

If you’re considering buying or selling in 2026, understanding these year-over-year shifts can help you make confident, strategic decisions.

For a customized analysis of your property or neighborhood, reach out to our team at Desert Cities Home.