What Buyers & Sellers Really Need to Know About Inventory and Prices
Palm Springs Real Estate Market Forecast 2026 Update
Bottom line: Halfway through 2026, the Palm Springs area is a balanced market. The median detached home in the desert sold for about $675,000 at the end of May, down 3.6% from a year ago, while roughly 3,358 homes are for sale across the valley, about 5.4 months of supply. That is the textbook definition of a balanced market. The one part of the market still climbing is luxury: homes priced above $1 million are up about 5% so far in 2026, which is exactly where most of our buyer and seller clients are active.
For years the desert moved at a frantic pace, with homes selling before some buyers could finish a tour. That pressure has eased. You now have room to compare communities, weigh your options, and make a confident decision, and sellers who price correctly are still finding ready buyers. This is the calm, steady kind of market the desert does well, and it tends to reward people who plan ahead rather than rush.
Market at a glance
| Metric (end of May 2026) | Figure | Change from a year ago |
|---|---|---|
| Median detached home price | $675,000 | down 3.6% |
| Median attached home price (condos and townhomes) | $490,000 | up 2.1% |
| Homes for sale across the valley | about 3,358 | down 8% |
| Months of supply | about 5.4 months | balanced |
| Median days on market | about 49 days | steady |
| Homes selling over list price | 9.6% | down from 10.6% |
| Luxury segment (homes over $1 million) | up about 5% | rising |
Source: Desert Housing Report, May 2026 (PSRAR and CDAR via Market Watch LLC), and the California Association of REALTORS 2026 forecast.
Are home prices going up or down in 2026?
It depends on where you look. At the everyday level, prices have softened slightly. The median detached home sold for about $675,000 at the end of May 2026, down 3.6% from a year earlier. Condos and townhomes went the other direction, with the median attached home up 2.1% to about $490,000.
The luxury market is the real story. Homes priced above $1 million are up about 5% so far this year, even as the broad market levels off. Looking ahead, the California Association of REALTORS forecasts statewide median prices to rise about 3.6% across 2026, which lines up with the steady, single digit growth we are seeing locally. No dramatic drops, no runaway spikes, just a market finding its footing.
Is it a buyer’s or seller’s market right now?
Right now it is a balanced market, and that is good news for both sides. About 5.4 months of inventory sits squarely in the range that favors neither buyers nor sellers. Homes are taking a median of about 49 days to sell, and detached homes are closing around 2.9% under list price, so prepared buyers have genuine negotiating room.
Sellers still hold a strong hand when they price and present well. About 9.6% of homes sold over list price in the most recent data, down only slightly from 10.6% the year before. The takeaway for sellers is simple: the buyers are there, but pricing and presentation matter more now than they did during the frenzy years.
Is now a good time to buy in Palm Springs?
For most buyers, yes. Inventory is healthy, the pace is reasonable, and mortgage rates have settled into the low to mid 6% range, which gives buyers more certainty than the swings of recent years. You can take your time, tour several communities, and negotiate without the pressure of a bidding war.
Activity is spread across the desert, with Palm Desert leading recent sales at about 178 homes, followed by Palm Springs at about 157 and La Quinta at about 112. Buyers coming from outside the area, including the many Canadian buyers we help each year, are still drawn here for the same reasons they always have been: sunshine, golf, and a resort lifestyle that is hard to find anywhere else. If you are buying from across the border, our guidance for Canadian buyers walks through the process from financing to closing, and our buyer services team can start your search whenever you are ready.
One desert quirk worth knowing: summer is the quiet season here. The heat thins out the buyer pool from June through September, which often means less competition and more flexible sellers for anyone willing to shop when others are waiting for fall.
Why luxury is holding strong
The luxury segment is where the desert continues to separate itself from the broader market. While everyday prices have leveled off, homes above $1 million are up about 5% in 2026. Limited supply in the area’s premier golf and country club communities keeps values firm at the top of the market, and demand for the resort lifestyle has not slowed.
This is the part of the market we know best. Our team completes more than 200 transactions a year across the desert’s most sought after communities, from the seven courses of PGA West to the exclusive Madison Club in La Quinta with its Tom Fazio golf course. You can browse the full range of La Quinta golf communities to see how varied the options are, from livable country clubs to estate level privacy. When you are buying or selling a luxury home in a community like this, working with a team that visits these properties every week, rather than once or twice a year, makes a real difference in pricing and negotiation.
What this means if you are selling
If you are thinking about selling in 2026, the opportunity is real, but the approach has changed. Buyers have more choices, so the homes that sell quickly and for top dollar are the ones priced to current market value and presented well. Strong photography, smart staging, and proactive marketing are what bring qualified buyers to your door now. We invest in that marketing on every home we list because, in a balanced market, that is what turns a listing into a sale.
Let’s talk about your move
Whether you are buying your first desert home, moving up to a golf community, or selling a property you have loved for years, the 2026 market rewards a clear plan and good timing. I welcome the opportunity to help you think it through. Please reach out when the time is right, even if you just have a question about where the market is headed.
Frequently Asked Questions
Is now a good time to buy in the Palm Springs area? For most buyers, yes. With about 5.4 months of inventory and a median of 49 days on market, you have room to compare communities and negotiate rather than rush. Detached homes are closing around 2.9% under list price, so prepared buyers have real negotiating room. Buyers focused on luxury homes should move with more urgency, since the segment above $1 million is still appreciating.
Are Palm Springs home prices going up or down in 2026? It depends on the price range. The median detached home sold for about $675,000 at the end of May 2026, down 3.6% from a year earlier, while the median attached home rose 2.1% to about $490,000. The luxury market above $1 million is up about 5% so far in 2026, and the California Association of REALTORS forecasts statewide median prices to rise about 3.6% for the year.
Is it a buyer’s or seller’s market in the Palm Springs area right now? It is a balanced market. About 5.4 months of inventory falls in the range that favors neither side. Buyers have more choice than they did during the frenzy years, and sellers who price correctly and present well are still finding ready buyers. About 9.6% of homes still sold over list price in the most recent data.
How much does a home cost in the Coachella Valley right now? The median detached home sold for about $675,000 at the end of May 2026, and the median attached home, which includes condos and townhomes, sold for about $490,000. Prices range widely by city and community, from entry level condos to estates worth several million dollars in the desert’s private golf clubs.
Is the luxury market slowing down too? No. While the broader market has leveled off, the luxury segment above $1 million is up about 5% in 2026. Limited supply in the desert’s premier golf and country club communities continues to support values at the top of the market.