Palm Springs Real Estate Market Update: Q4 2024 & Q1 2025 Forecast
As we move through the final quarter of 2024 and look toward 2025, the Palm Springs real estate market continues to demonstrate its unique blend of stability, luxury, and opportunity. Known for its iconic mid-century modern homes, stunning landscapes, and vibrant lifestyle, Palm Springs remains a sought-after destination, though the market dynamics have shifted from the frenzy of previous years to a more balanced landscape.
With inventory levels rising and price growth normalizing, it’s essential to understand the current trends, price fluctuations, and forecasts for the upcoming year. Whether you're considering buying, selling, or investing in Palm Springs, here’s a comprehensive look at the real estate landscape for Q4 2024 and early 2025.
Current Real Estate Prices & Stats (Q4 2024)
The Palm Springs real estate market has transitioned into a phase of stabilization. After years of rapid appreciation, the frantic pace has cooled, offering more breathing room for buyers and requiring strategic pricing from sellers.
- Median Sales Price: As of late 2024, the median home price in Palm Springs hovers between $625,000 and $680,000, reflecting a stabilization rather than aggressive growth.
- Days on Market: Homes are taking longer to sell, with the median days on market stretching to approximately 60-80 days. This is a significant shift from the 30-day averages seen in peak years.
- Inventory Levels: Inventory has risen significantly, up roughly 30% year-over-year. We are currently seeing about 5 to 6 months of supply, pushing the region technically into a "Balanced Market" territory.
Luxury properties in Palm Springs, including estates in neighborhoods such as Vista Las Palmas and Old Las Palmas, continue to command premium prices ($2.5M - $5M+). While transaction volume has slowed, values have held firm due to scarcity. Conversely, the condo market ($400k - $650k) has seen inventory buildup, creating negotiation opportunities for buyers.
Trends Driving the Market in Q4 2024
Second Homes & Rental Viability
The demand for vacation homes remains the backbone of the market, but the "rush" has been replaced by calculated investment. Buyers are prioritizing properties with proven rental history or those in neighborhoods with fewer restrictions. Homes with "Junior Permits" or suitability for 30-day+ seasonal rentals are seeing a premium in interest.
Luxury & The "Turnkey" Premium
The luxury market operates with different fundamentals. Cash buyers—who make up a significant portion of high-end transactions—are less sensitive to interest rates. However, they are increasingly demanding "turnkey" perfection. Updated, design-forward properties trade near asking price, while homes requiring renovation sit longer.
Market Forecast: Q1 2025 Outlook
Looking ahead to the first quarter of 2025, all signs point to a year of opportunity and negotiation.
- A Defined Buyer's Advantage: With inventory at its highest point in years, Q1 2025 is projected to be the best time for buyers to enter since 2019. We expect to see more concessions, such as sellers covering closing costs or rate buydowns.
- Price Stabilization, Not Crash: Despite rising inventory, a crash is unlikely due to land scarcity and high demand. We forecast flat to low-single-digit price growth (0-2%) for early 2025.
- Return of the Seasonal Buyer: Q1 is traditionally "Snowbird Season." In 2025, we anticipate a strong wave of buyers from Canada and the Pacific Northwest who have been waiting for rates to settle.
Navigate the Shifting Market
In a shifting market, data is your most valuable asset. Whether you’re buying, selling, or investing, the Bernal-Smith Group offers the hyper-local expertise needed to navigate these changes.
Contact the Bernal-Smith Group today to discuss your strategy for 2025.
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