If you have savings, solid credit, and a long-term plan, today’s conditions make it a strategic time to buy with inventory and discounts on your side.
If you’re thinking about buying a home in Palm Springs, you might be wondering if now is the right time. Many buyers are asking the same question because inventory is increasing, prices are adjusting, and homes are staying on the market longer than they did a year ago. The market is cooling, but it isn’t experiencing dramatic swings. The numbers show a gradual shift that’s giving buyers more negotiating power. Here’s a closer look at what’s happening in the Greater Palm Springs area as of August 2025:
Home prices have softened but remain steady overall. The average home value in Palm Springs is $652,500, representing a 1.9% decrease from last year. While that may sound like a significant drop, prices have held relatively steady over the past few years. Homes are also taking longer to sell, averaging 56 days on the market compared to 47 days last year. This mix of slightly lower prices and longer timelines points to a market that’s cooling but still resilient.
“Buyers have more room to negotiate than before.”
Inventory has increased and favors buyers. One of the most significant changes is the rise in available homes. As of early August, Palm Springs had 661 active listings, up from 548 last year. That is a 30% increase, which translates into 5.2 months of supply. Across the Coachella Valley, supply ranges between 4.9 and 5.5 months. For buyers, this means more choices, less competition, and better opportunities to negotiate.
Discounts and negotiating power are improving. Buyers are seeing more room to negotiate than before. On average, homes are selling at a 4.1% discount from the asking price compared to 2.9% last year. With more inventory and longer days on the market, sellers are more flexible, which benefits buyers. At the same time, sales activity is holding steady. Palm Springs recorded 128 sales over the past three months, compared to 120 during the same period last year, indicating that demand remains strong.
How should buyers approach this market? If you’re financially ready with a down payment, savings, strong credit, and a long-term plan, now could be a smart time to buy. Higher inventory, longer timelines, and deeper discounts are working in your favor. However, if single-family home prices are still above your budget or if today’s mortgage rates feel too high, it may make sense to wait for potential rate adjustments before moving forward.
Palm Springs still offers plenty of opportunities, but buyer confidence can shift quickly when mortgage rates and inventory levels change, which means timing is important. This makes it even more valuable to work with an experienced agent who understands the Palm Springs market and can guide you based on the latest trends. If you’re considering making a move in these current conditions, please feel free to call or text me at 760-774-3066 or email me at Will@WillCookRealEstate.com. I’d be glad to guide you through the process.
