Palm Springs Real Estate Market Update: What Buyers & Sellers Need to Know in August 2026

by Lisa Angell

August 2026 Coachella Valley Real Estate Market: Groundhog Day... With a Few Plot Twists

If the Coachella Valley real estate market feels a little like Groundhog Day right now, you are not imagining it.

We are still dealing with many of the same issues that shaped the market in 2025: higher borrowing costs, affordability pressure, sellers reluctant to give up great mortgage rates, and buyers being much more selective about what they purchase.

But when I dug into the July 2026 numbers, there were also a few changes worth paying attention to.

And some of them are actually encouraging.

I recorded this update on August 15, which also means we need to put these numbers in the proper context: July and August are not exactly peak house-hunting months in the Coachella Valley.

It is hot.

Very hot.

People aren't exactly wandering around Palm Springs at 2:00 in the afternoon saying, “You know what sounds fun? Let's tour seven houses.” 😅

So rather than overreacting to normal seasonal changes, I like to look at the bigger picture.

Here's what I'm seeing.

(If you'd like to skip right to my video on this topic CLICK HERE)

Sales Are Down, But Inventory Is Down Even More

Compared with July 2025, the number of sales in July 2026 decreased by approximately 8.4%.

At first glance, that might sound negative.

But inventory dropped significantly more.

That matters.

When there are substantially fewer homes available but sales have declined by a much smaller percentage, it suggests that the homes currently on the market are being absorbed at a healthier rate than the raw sales number alone might suggest.

In other words:

There are fewer homes competing for those buyers.

For sellers, that is important.

Months of Supply Has Improved Considerably

One of my favorite ways to explain a housing market is through months of supply.

Think of it this way:

If no additional homes came onto the market today, how long would it take buyers, at the current pace of sales, to purchase the homes already available?

As a very general guideline:

Roughly 0 to 3 or 4 months can favor sellers
Roughly 4 to 6 months tends to be relatively balanced
More than 6 months generally begins favoring buyers

Last year, the Coachella Valley was sitting around 6.7 months of supply, putting us just into buyer-market territory.

This year, that number has improved by nearly two months, an improvement of approximately 25%.

That doesn't mean we've suddenly returned to a strong seller's market.

We haven't.

But it does suggest the market is becoming more balanced.

And there is an important distinction between property types.

Single-family homes appear to be performing somewhat better, while the condo market is closer to favoring buyers.

Which is why broad headlines about “the Palm Springs market” never tell the whole story.

Your neighborhood, property type, price point, land ownership, condition and even community rules can dramatically change what your individual market looks like.

Days on Market Doesn't Always Tell the Whole Story

The reported days on market was approximately 72 days, essentially unchanged from the same period last year.

But this is one of those statistics I always want consumers to understand more deeply.

A property may have been listed previously, expired or canceled, spent some time off the market, and then been listed again.

Depending upon how the MLS is reporting the statistic, that earlier marketing period may not necessarily be obvious when someone sees the current days-on-market number.

That is why, when I am evaluating comparable properties for a client, I don't just look at the current listing.

I look at the property's listing history.

A house that appears to have sold after 25 days may actually have spent months testing higher prices before finally relisting at the price the market accepted.

That brings us to perhaps the most important lesson in today's market.

Pricing Matters More Than Ever

The current sale-price-to-list-price ratio is approximately 95.9%.

But here's the important part.

That number generally reflects the price a property was listed at when it finally attracted the successful offer, not necessarily where the seller originally started.

The original-list-price-to-sale-price relationship tells a different story because many sellers have already made one or more reductions before reaching the price that finally caused a buyer to act.

And psychology matters.

Imagine you're a buyer.

House A

It came on the market two days ago.

You love it.

It is priced competitively compared with everything else you've seen.

Your reaction may be:

“We probably need to make a strong offer because someone else may want this too.”

Now consider:

House B

You love it too.

But it has been sitting on the market for 60 days.

Now the conversation often becomes:

“What's wrong with it?”

“I wonder how much they'll take?”

Same buyer.

Potentially the same house.

Completely different negotiating mindset.

That's why the goal isn't necessarily to choose the highest price we can theoretically justify.

It is to identify the price most likely to create buyer confidence and competition while the listing is still fresh.

I believe in that strategy strongly enough that I'll be using it when I sell my own home.

Why Some Palm Springs Area Sellers Have Sticker Shock

This is something I've been talking through with sellers quite a bit.

A homeowner remembers the house across the street selling for $750,000 several years ago.

Now an agent comes in and tells them their similar property may be worth substantially less.

Understandably, their first response can be:

Wait. What happened?

In certain neighborhoods, particularly areas that experienced intense short-term-rental investment during the pandemic-era market, prices moved unusually quickly.

Investors were competing aggressively.

Short-term rental projections looked terrific.

Then more rentals entered the market.

Competition increased.

Operating economics changed.

Some owners converted properties to long-term rentals. Others eventually decided to sell.

That additional supply helped normalize pricing in those particular neighborhoods.

That doesn't mean every Coachella Valley neighborhood experienced the same thing.

Far from it.

Some communities never allowed widespread short-term rentals.

Others have different land structures, HOA restrictions, architectural appeal, location advantages or buyer profiles.

Real estate remains extremely local.

Sometimes it is practically street-by-street local.

Home Prices Aren't Exactly Collapsing Either

Here's another interesting piece of the puzzle.

The median sales price was only slightly higher year over year, but average price per square foot increased approximately 4.9%, from around $400 to $420 per square foot.

One possible explanation is a shift in the types or sizes of homes buyers are purchasing.

Affordability matters.

A buyer who previously planned to spend $600,000 might now feel more comfortable closer to the low-to-mid $500,000 range.

That can push demand toward smaller homes or different neighborhoods without necessarily meaning the underlying market is dramatically losing value.

This is another reason I don't recommend making decisions based on one headline statistic.

Sellers Are Also Choosing Not to Sell

One of the biggest differences between this housing cycle and the Great Recession is the position many homeowners are in today.

A lot of owners:

Have substantial equity
Bought or refinanced when mortgage rates were very low
Have relatively manageable monthly payments
Own their homes outright
Simply don't need to move

So when they look at today's market and think:

“I'm not thrilled with that price, and I don't actually have to sell...”

They don't.

That helps explain why we aren't seeing inventory explode.

And because supply remains limited, today's market hasn't developed into the kind of deeply buyer-favored environment we experienced during the housing crash.

What This Means for Buyers

Buyers absolutely have more negotiating power than they had several years ago.

You can often take more time.

You may be able to negotiate price, closing costs, repairs or other terms.

But don't confuse a balanced market with a market where every seller is desperate.

Well-priced homes still sell.

And when something particularly desirable comes onto the market at a compelling price, buyers may still find themselves competing.

So if you are waiting for every home in Palm Springs to suddenly go on sale...

You could be waiting a while.

What This Means for Sellers

Today's market rewards three things:

1. Realistic pricing

You need to understand where buyers are actually writing offers today, not simply what a neighbor sold for several years ago.

2. Excellent presentation

Buyers have choices. Your home needs to compare favorably with the competition.

3. A strategy that responds quickly

Sometimes we can pinpoint the market price immediately.

Other times the market needs to give us information.

If showings, online engagement and buyer feedback tell us the price is wrong, we need to listen.

The good news?

A good house, presented well and positioned correctly, can absolutely sell in this market.

The Bottom Line

August 2026 isn't suddenly a roaring seller's market.

It also isn't the disaster some housing headlines might lead you to believe.

The Coachella Valley is broadly sitting in a more balanced environment, with certain property types and neighborhoods performing better than others.

Inventory has decreased.

Months of supply has improved.

Well-positioned homes are selling.

And buyers still have opportunities to negotiate.

Which means the question really isn't:

“Is this a good market?”

The better question is:

“What does this market mean for my particular home, neighborhood or buying strategy?”

That's something we can actually answer.

Want Numbers for Your Specific Neighborhood?

If you're considering buying or selling anywhere in the Coachella Valley, I am happy to put together a neighborhood-specific market analysis rather than relying on broad valley-wide statistics.

You can request one here:

👉 REQUEST MY NEIGHBORHOOD MARKET UPDATE

Or watch the full August market breakdown:

🎥 WATCH THE VIDEO

I'm Lisa Angell with LPT Realty, and after more than 28 years in real estate, I've worked through everything from booming seller markets to the Great Recession and just about everything in between. My goal is to help you understand the numbers so you can make the decision that makes sense for you.

Equal Housing Opportunity. Information provided is for general informational purposes and is not intended as legal, tax, lending or financial advice. Market conditions, property characteristics, HOA rules, rental regulations and individual circumstances vary. Buyers and sellers should independently verify information important to their decision and consult the appropriate licensed professionals when needed.