For many Los Angeles residents, the dream of owning a getaway home in Palm Springs has often seemed just out of reach. The allure of desert sunsets, mid-century architecture, and a more relaxed pace of life has historically come with a premium price tag. However, the Palm Springs real estate market of 2025 is presenting a rare opportunity for potential buyers that hasn't been seen in years.
This newsletter explores the current state of the Palm Springs housing market, with a particular focus on what Los Angeles residents should know when considering a second home purchase. We'll examine recent price trends, identify the most affordable neighborhoods, analyze monthly sales data, and provide actionable insights for prospective buyers.
Current Market Overview: A Shift in Favor of Buyers
The Palm Springs real estate market has undergone a significant transformation over the past year, shifting decisively from a seller's market to a buyer's market. This transition presents a favorable opportunity for Los Angeles residents looking to purchase getaway homes in the area.
According to the latest data from Redfin, the median sale price in Palm Springs was $690,000 in April 2025, representing a substantial 10.4% decrease from the previous year. This price drop stands in stark contrast to the California statewide median home price, which increased by 3.5% over the same period according to the California Association of Realtors (C.A.R.).
Rocket Homes reports an even more dramatic shift, with their May 2025 data showing a median home sold price of $507,500, down 7.7% from last year. Their market analysis definitively classifies Palm Springs as a "Buyer's Market," noting that "prices tend to be lower and homes stay on the market longer."
Key factors contributing to this market shift include:
1. Consistent price decreases across multiple reporting agencies (7.7% to 10.4% year-over-year)
2. Increased inventory with homes staying on the market longer (71 days on average, up from 68 days last year)
3. Decreased competition with homes receiving fewer offers (average of just 1 offer per property)
4. Reduced sales volume (22.3% fewer homes sold compared to last year)
This combination of factors creates a window of opportunity for potential buyers, particularly those looking for second homes or investment properties in the Palm Springs area.
Price Trends: Are Prices Coming Down?
The data clearly shows that prices in Palm Springs are indeed coming down, bucking the trend seen in much of California. Multiple authoritative sources confirm this downward trajectory:
• Redfin: Median sale price down 10.4% year-over-year to $690,000 • Rocket Homes: Median home sold price down 7.7% to $507,500 • Price per square foot: Down 6.7% to $421 according to Redfin
This price correction follows several years of rapid appreciation during and after the pandemic. The current decline represents a normalization of the market rather than a crash, creating more reasonable entry points for buyers.
Interestingly, while Palm Springs proper is seeing price decreases, the broader Coachella Valley shows some mixed signals. The Greater Palm Springs Realtors (GPSR) Desert Housing Report for March 2025 notes that the median price of detached homes in the Coachella Valley increased to $710,000, marking the fifth straight month of increases. This divergence suggests that Palm Springs itself may be offering better value than surrounding areas at present.
Affordable Neighborhoods: Where to Look
For Los Angeles residents seeking the most affordable options in Palm Springs, our cross-referenced analysis of multiple sources reveals several neighborhoods that offer the best value in 2025:
1. Deepwell Estates
• Median Home Price: $330,051
• Median Rent: $1,581
• Median Price Per Square Foot: $266
• Notable Features: Lowest median home price in Palm Springs, recent price drops
observed, some homes showing $16K price reductions
2. Four Seasons
• Median Home Price: $535,526
• Median Rent: $1,420
• Median Price Per Square Foot: $278
• Notable Features: Second most affordable neighborhood, recent price drops of
$10K observed on some properties
3. Racquet Club Estates
• Median Home Price: $719,998
• Median Rent: $1,420
• Median Price Per Square Foot: $295
• Notable Features: Mid-century modern architecture, vibrant community
atmosphere, steady increase in property values but still relatively affordable
4. Whitewater Club
• Median Home Price: $420,418
• Median Rent: $1,420
• Median Price Per Square Foot: $315
• Notable Features: Fourth most affordable neighborhood, recent price drops of $9K
observed
5. Sunrise Park
• Notable Features: Scenic views, convenient location, range of affordable housing options, proximity to parks, shopping centers, and restaurants
6. Desert Park Estates
• Notable Features: Affordable housing options, nearby amenities including parks, playgrounds, and walking trails
7. Cathedral City
• Notable Features: Located in the heart of Coachella Valley, surrounded by mountains and desert landscapes, proximity to hiking trails, golf courses, and parks
For LA buyers specifically, neighborhoods like Deepwell Estates and Four Seasons offer the best combination of affordability and amenities suitable for a vacation property. Condos represent some of the most affordable options, with prices as low as $140,000 for 1-bed units in Racquet Club West.
Monthly Sales and Closing Data
The latest monthly sales data reveals a market with decreased transaction volume but increased inventory, creating favorable conditions for buyers:
April 2025 Data (Redfin)
• Number of Homes Sold: 146 (down 22.3% from 188 last year) • Median Days on Market: 71 days (up 3 days year-over-year)
March 2025 Data (GPSR Desert Housing Report)
• Median Price of Detached Homes in Coachella Valley: $710,000 (up $11,000 from last year)
• This marks the fifth straight month of price increases in the region
California Statewide Context (C.A.R. March 2025 Report)
• Statewide Median Home Price: $884,350 (up 6.7% from February and up 3.5% from March 2024)
• Statewide Sales: 277,030 homes (down 2.3% from February but up 4.9% from March 2024)
• Year-to-date statewide home sales: up 1.9%
• Southern California region: Sales down 0.4% from last year
The decreased sales volume in Palm Springs, combined with longer days on market, indicates less competition among buyers. This creates more room for negotiation and potentially better deals for those looking to purchase a getaway home.
Migration Patterns: Who's Moving Where?
Understanding migration patterns provides additional context for LA residents considering a Palm Springs purchase. According to Redfin's migration analysis for February-April 2025:
• 23% of Palm Springs homebuyers searched to move out of Palm Springs
• 77% looked to stay within the metropolitan area
• Top inbound migration: Houston (1,150 net inflow) and San Francisco (854 net
inflow)
• Top outbound destinations: Las Vegas (6,194 net outflow) and San Diego (6,111
net outflow)
These patterns suggest that while some Palm Springs residents are looking elsewhere (particularly Las Vegas and San Diego), there remains strong interest in the area from major metropolitan centers like Houston and San Francisco. For LA residents, this means you'll be competing with buyers from other high-cost areas who may also be looking for vacation properties or retirement homes.
Implications for LA Buyers: Why Now Is the Time
For Los Angeles residents specifically, the current Palm Springs market presents several compelling advantages:
1. Price differential: The significant price drops in Palm Springs (-10.4%) compared to statewide increases (+3.5%) create a favorable buying opportunity
2. Negotiating power: Increased inventory and longer days on market (71 days) give buyers more leverage in negotiations
3. Less competition: Homes receiving an average of just 1 offer means less chance of bidding wars
4. Variety of options: With more homes on the market, buyers have a better selection to choose from
5. Proximity advantage: The relatively short distance from LA (approximately 2 hours) makes Palm Springs an ideal weekend getaway location
6. Rental potential: When not in use, a Palm Springs property can generate rental income from tourists and seasonal visitors
Practical Considerations for LA Buyers
When considering a Palm Springs getaway home, Los Angeles residents should keep these practical factors in mind:
1. Transportation: Most Palm Springs neighborhoods have low walkability scores, making a car essential for most activities. This is an important consideration for a second home that may sit vacant for periods of time.
2. Climate considerations: Palm Springs summers are extremely hot, which may affect usage patterns and rental potential during summer months.
3. HOA and community fees: Many Palm Springs communities have HOA fees that should be factored into the total cost of ownership.
4. Rental regulations: If you plan to rent your property when not in use, be aware of local regulations regarding short-term rentals.
5. Financing options: Second home mortgages typically have different requirements than primary residences. Consult with a mortgage professional familiar with vacation properties.
Conclusion: A Window of Opportunity
The Palm Springs real estate market in 2025 presents a rare window of opportunity for Los Angeles residents seeking getaway homes. With prices declining, inventory increasing, and competition decreasing, conditions strongly favor buyers for the first time in several years.
For those who have long dreamed of a desert retreat but found prices prohibitive, now may be the ideal time to act. The combination of market conditions, affordable neighborhoods, and the enduring appeal of Palm Springs creates a compelling case for Los Angeles residents to consider a second home purchase in this iconic desert destination.
Whether you're drawn to the mid-century modern architecture, the relaxed lifestyle, or simply the change of scenery from urban LA, the current market offers more accessible entry points than we've seen in recent years. As with any real estate decision, thorough research and professional guidance are recommended, but for many LA residents, the Palm Springs getaway home may finally be within reach.
Sources
1. Redfin Palm Springs Housing Market Report, April 2025
2. Rocket Homes Palm Springs Market Report, May 2025
3. California Association of Realtors (C.A.R.) March 2025 Sales Report
4. Greater Palm Springs Realtors (GPSR) Desert Housing Report, March 2025 5. Flyhomes Top 10 Cheapest Places To Live In Palm Springs, CA, 2025
6. TotalSoCalHomes Affordable Neighborhoods in Palm Springs, CA
