Greater Palm Springs Real Estate Market Report: July 2026

Coachella Valley Housing Market Data, Updated August 2026

By Jared Dineen Shanstrom, REALTOR® · The Dineen Shanstrom Group · Equity Union

The Coachella Valley real estate market is splitting in two. One side is working. One side is not. And the gap between them is getting wider.

In July, 495 homes sold across the greater Palm Springs market. The median price rose to $635,000, up 2.8% year-over-year. The list-price-to-sale-price ratio improved to 97.4%. By those measures, the market looks healthier than it has in months.

At the same time, 629 listings expired, cancelled, or withdrew. That is more than the number of homes that actually closed. For the second straight month, more listings failed than succeeded.

Both of those things are true. And that is the story.

The homes that are priced correctly are selling faster and closer to asking than they were 60 days ago. The homes that are not priced correctly are failing at a historic rate. The market is not slow. It is selective. And with inventory now at its lowest level since 2022, that selectivity is about to have real consequences heading into fall.

How Did the Palm Springs Real Estate Market Perform in July 2026?

The Coachella Valley recorded 495 closed residential sales in July 2026, down 9.0% from July 2025 (544 sales). That decline is consistent with the seasonal pattern. July is always one of the slowest months in the desert.

The valley-wide median sold price was $635,000, up 2.8% from $618,000 last July. That is the first year-over-year price increase since early spring.

Average days on market came in at 72.2, basically flat from last year (71.2). The median list-price-to-sale-price ratio improved to 97.4%, up from 96.5% in June and 97.3% a year ago. Sellers who priced correctly gave back less than they have in months.

Total closed volume was $450 million. The high sale was $17.5 million.

Greater Palm Springs median sold price, Jan 2020 through Jul 2026. Source: flexmls (CRMLS).

How Much Has Coachella Valley Inventory Dropped?

This is the biggest story in the market right now, and it has been building since spring.

Active listings across the valley dropped to 2,641. In March, there were 3,793. That is a decline of 1,152 listings. 30% of the available inventory has disappeared in five months.

Valley-wide months of supply now sits at approximately 4.7. In March it was 6.0. In January it was above 7 in several cities. The direction has been consistent and accelerating.

Active residential listings, Coachella Valley, 2026. A 30% decline in five months.

This matters because inventory is a leading indicator. Prices follow supply. When there are fewer homes to choose from, competition increases, negotiating leverage shifts, and prices eventually respond.

That response has not fully materialized yet. But the conditions are building. And with seasonal buyer demand returning in October, the math is moving in one direction.

Months of supply by city. Six months is considered balanced. Most cities are now well below that line.

Why Are More Listings Failing Than Selling?

For the second consecutive month, more listings expired, cancelled, or withdrew than actually closed. In July: 629 failures vs 495 closings. That is 127 failed listings for every 100 successful sales.

Here is what makes this paradox interesting. The homes that did sell performed better than they have in months. LP/SP improved from 96.5% in June to 97.4% in July. DOM held steady. The median price ticked up year-over-year for the first time in a while.

So the successful sales are getting stronger while the failure rate gets worse. How?

Because the market is polarizing. Correctly priced homes in desirable locations are attracting buyers quickly and closing near asking. Overpriced listings are sitting, languishing, and eventually expiring. There is less and less middle ground.

Closed sales vs failed listings, 2026. In June and July, more listings failed than succeeded.

Is the Median Price Increase Real or Mix Shift?

The valley-wide median rose from $618K (July 2025) to $635K (July 2026). That is a 2.8% increase. But as we have covered in prior months, the combined median can be misleading.

Condo share in July dropped to 32.5%, down from about 40% earlier in the year. When fewer condos trade as a share of total sales, the combined median rises even if individual property values have not changed.

That said, some of the price strength is real. Palm Desert's median jumped 14.7% year-over-year even with a higher condo share (45% vs 36%). Cathedral City SFR is closing at 99.5% of asking. Indian Wells hit $2.5M. These are not just mix effects.

The honest read: prices are stable to slightly up across most product types. The 2.8% headline number overstates it slightly due to mix shift, but the direction is no longer flat. It is tilting positive, which is consistent with what the inventory data would predict.

What Does This Mean for Buyers and Sellers in the Coachella Valley?

If You Are Buying

The math is straightforward and it is not moving in your favor. There are 1,152 fewer homes on the market than five months ago. When seasonal buyers return in October, they will be competing for a smaller pool of listings.

Right now, you still have negotiating room. LP/SP at 97.4% means sellers are giving back 2.6% on average. DOM at 72 days means you have time to evaluate. Those conditions are unlikely to hold if inventory keeps tightening.

The 629 expired listings are worth watching. Many of those will relist at reduced prices in August and September. That could create short-term buying opportunities before season picks up.

If You Are Selling

The market is doing what you need it to do. Inventory is dropping, competition is thinning, and the homes that are priced correctly are closing stronger than they have all year.

But 629 listings also failed this month. Nearly all of them were overpriced. The market has no patience for aspirational pricing right now. Price it right and you will sell in a reasonable timeframe. Miss by 5-10% and you are likely to sit through the summer and into fall without a contract.

If you are planning to list in fall, the setup is strong. Less competition from other sellers, returning seasonal demand, and tightening supply.

July 2026 Real Estate Data by City and Property Type

Ordered west to east. SFR first, then Condo/TH for each city.

Palm Springs

131 sales, $640K combined median. SFR median just under $1M with a median DOM of 47 days and 97.0% LP/SP. Condos at $410K, 63 days DOM. Palm Springs continues to be the deepest, most liquid market in the valley with a near-even SFR/condo split (52/48). 4.5 months supply. Seller leaning across both property types.

Cathedral City

49 sales, up 29% year-over-year. The standout this month. SFR median $525K with 39 days DOM and a 99.5% LP/SP ratio. That is effectively a competitive market where sellers are getting full asking price. Condos are softer at $267K with 95.0% LP/SP. At 3.6 months supply, Cathedral City is the tightest market in the valley and continues to outperform as the most affordable entry point.

Rancho Mirage

52 sales, $891K combined median. SFR at $1,087,500 with 47 days DOM. The single-family median has held between $975K and $1.4M for 18 straight months. Condos at $605K with a strong 97.5% LP/SP. 5.1 months supply. Balanced to seller leaning.

Palm Desert

96 sales, $619K median. Volume is down 21% YoY but the median jumped 14.7%. Condo share rose to 45% from 36%, which would normally pull the median down, meaning the underlying price strength is real. SFR at $765K, condos at $445K. 6.1 months supply. The closest to balanced of any major market in the valley.

Indian Wells

19 sales, $2.5M median, up 47.9% YoY. The luxury end is firing. SFR at $2.5M with 91 days DOM. Only 69 active listings and 3.3 months supply makes this the tightest inventory in the valley. LP/SP at 95.1% tells you there is still negotiating room on luxury, but the leverage is shifting.

La Quinta

74 sales, $687K combined median. SFR at $644K with 54 days DOM and 97.8% LP/SP. Condos at $730K, which reflects the country club product in PGA West and club communities. Volume down 19% YoY. Condo share tripled from 10% to 28%, which is driving the median movement. 4.3 months supply. Seller leaning.

Indio

66 sales, $545K median. SFR at $550K with 57 days DOM and 98.3% LP/SP. Indio has improved significantly from the 90+ day DOM it posted in April and May. Sellers are adjusting pricing expectations and the market is responding. 5.5 months supply. A small condo market (only 4 sales) but they closed at 100% of asking.

Bermuda Dunes

8 sales. Small sample, unreliable median. SFR at $752K with a high DOM of 98 days. 4.8 months supply. Functional micro-market but not one to draw broad conclusions from monthly.

Monthly closed sales volume, greater Palm Springs, Jan 2020 through Jul 2026.

What Should Buyers and Sellers Watch Heading Into Fall?

August will be the quietest month of the year. It always is. Fewer showings, fewer offers, fewer closings. That is the desert in summer.

But what happens in September and October depends on where these three numbers land:

1. Active inventory in September. If it stays below 2,800, fall will be competitive. Seasonal buyers returning to fewer than 2,700 listings would be the tightest supply since early 2022. If it rebounds above 3,200 with a wave of new fall listings, the market rebalances and buyers get more options.

2. The expired listing pipeline. 629 listings failed in July alone. Some will relist at lower prices in August and September. That wave of price-reduced inventory could create a short window of opportunity for buyers before season demand picks up.

3. Single-family vs condo medians. The combined median is up 2.8% YoY, but condo share dropped. Watch the SFR median independently. If it breaks above $650K valley-wide for two consecutive months, prices are genuinely moving up, not just mixing up.

Greater Palm Springs Real Estate: Frequently Asked Questions

About This Report

This analysis covers the eight cities of the greater Palm Springs / Coachella Valley market: Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, Indio, and Bermuda Dunes. Data is sourced from flexmls (CRMLS). Only single-family homes and condos/townhomes are included. Listings where the sale price deviated more than 50% from list price are excluded. Months of supply is calculated using a trailing three-month average sales pace against current active inventory.

I publish this report monthly. If you want analysis specific to your neighborhood, subdivision, or price range, reach out. I run these numbers daily.