Palm Springs Luxury Homes: Strong but More Selective

Is the Palm Springs area luxury real estate market slowing down, or is it still strong? The answer is that it’s still strong. But buyers have been much more selective, and that distinction matters a lot more than the headline does.

The numbers behind the headline. According to the May 2026 Franklin Loan Center Luxury Price Index, which tracks the average price of a 4,500-square-foot home across the top 15 luxury communities, including country club and golf communities, the index finished May at just over $4 million, up from $3.79 million last year.

The average price per square foot also increased, from $877 to $921. So despite all the headlines about a slower real estate market, the luxury segment is not falling apart.

Sales held, and so did volume. Luxury sales are averaging 20 homes per month, up from 18 last year, and dollar sales volume is essentially steady at $115 million per month, up from $114 million a year ago.

Where it gets more nuanced. Buyers are active, but they’re not reckless. They’re carefully comparing homes, looking at days on the market and price reductions, and negotiating. The average luxury home is now spending 75 days on the market, up from 65 days last year. Luxury homes are selling at an average discount of 4.4%, which is essentially the same discount as last year.

The part that surprises people. Inventory is actually lower than it was a year ago. At the end of May, there were 121 luxury homes for sale, down from 139 last year, and the months of supply improved from 7.6 to 6.1. That tells us the luxury market is not oversupplied.

Luxury is never one-size-fits-all. Some communities are outperforming while others are taking longer to sell. The report shows strong price gains in places like The Madison, Tradition, Tamarisk, Old Las Palmas, and El Dorado, while others are experiencing softer numbers. That’s exactly why you cannot price a luxury home based on broad market headlines. Different segments of this valley are moving in different directions, and the only segment that decides your outcome is yours.

For sellers, the message is clear. This is still a healthy luxury market, but it’s not a market where you can price high and hope. The best-positioned homes, the ones with the right location, condition, architecture, privacy, views, and pricing, are still getting attention. If you want a sense of what that looks like in practice, check out how we position and market luxury listings across the valley on our site.

Buyers, this isn’t a bargain basement. Prices are still elevated, and inventory is not excessive. But compared to the frenzy of a few years ago, there’s more room to be thoughtful, selective, and strategic.

My read on the Palm Springs area luxury real estate market is this. Strong but selective, healthy but disciplined, and more than ever, pricing precision matters.

If you’re thinking about buying or selling a luxury home in the greater Palm Springs area, reach out. Let’s talk strategy, positioning, and timing. Call or text me at (760) 774-3066, email me at Will@cookrealestate.com, or visit palmspringsrealty.com.

Thank you so much for reading. I’ll see you next time.