September Market Summary and Outlook 2025

Coachella Valley Real Estate Market Outlook – September 2025

September in the Desert marks a turning point. The heat starts to lift, and with it, so does buyer activity, at least slightly. But this year, that usual seasonal rhythm feels different. The market isn’t frozen, but it is measured. Sellers are giving up, buyers are picky, and the numbers tell a story of stabilization, not surge.

Market Overview

Rate Cut Just Dropped

The Fed announced its first interest rate cut of the year, bringing the benchmark rate down a quarter point to a target range of 4.00%–4.25%. It’s a small but significant move, signaling that policymakers are seeing enough economic softening, with the jobs report looking bleak, to warrant action, even though inflation is still above the Fed's target.

For our market here in the Coachella Valley, the impact is already starting to show. Mortgage rates are dipping—hovering around 6.35% for a 30-year fixed—and that shift is giving some buyers the confidence (and affordability) they’ve been waiting for.

But let’s be clear: a single rate cut isn’t a magic switch. It helps, but it doesn’t erase months of buyer hesitation or seller overpricing. It’s a nudge—and in this kind of market, even a small nudge can matter.

Inventory Levels Slip Slightly
After a summer of high inventory across the valley, September has seen a subtle pullback. Fewer new listings came to market in late August, likely due to seller hesitation or unrealistic pricing expectations. That said, overall inventory still remains well above this time last year, giving buyers more options than they’ve had in recent seasons.

Prices Flat or Gently Declining
Median sale prices across most of the valley’s cities have remained stable, though some market, especially in the mid-tier detached home segment, are showing slight declines. The luxury segment continues to resist pressure, but properties above $1.5M are taking a little longer to sell and now often close below list.

Longer Days on Market
Homes that aren't priced correctly or need updates are lingering. The average time on market has increased steadily since May, and we're now seeing many listings crossing the 60-day threshold before going under contract. This shift favors buyers who are watching closely and waiting for price drops or negotiation leverage.

City-by-City Pulse

Palm Springs
With summer temperatures still lingering, activity has remained slow in Palm Springs. Buyers are circling, but only for standout homes. Mid-century gems and fully remodeled properties continue to attract attention, but listings with deferred maintenance or bad pricing are sitting. Look for movement to pick up in late September as seasonal buyers return.

Palm Desert
Inventory remains strong, especially in the $600K–$900K range. Buyers are out there, but they’re cautious. Homes close to El Paseo or within gated communities are still moving, but buyers are negotiating much harder. Sellers who align with the market early are selling; those who don’t are falling into the price-reduction cycle and ultimately selling for less.

La Quinta
The luxury segment in La Quinta is holding, but it’s not accelerating. Custom homes in golf communities are still trading, but DOM is creeping up, and discounts are becoming the norm above $1M. Sub-$800K homes with pools and good curb appeal are performing well, especially those that are turnkey and marketed well.

Indio
This remains one of the most active submarkets in the valley, particularly for buyers seeking value. Inventory is slightly down from summer highs, but buyer demand is holding. Well-priced homes under $600K are moving, but short-term rental restrictions continue to influence investor behavior.

Indian Wells
Indian Wells is quiet but stable. The limited inventory and high-end buyer base continue to keep pricing steady. However, homes are taking longer to sell, even with strong location and amenities. The typical buyer here is patient and intentional, and they aren’t rushing into deals.

Coachella
The entry-level market continues to show strength, with newer construction and homes under $550K still attracting buyers. Time on market has increased slightly, but this remains one of the most affordable and active pockets in the valley. Long-term investors continue to show interest, even with short-term rental returns normalizing.

Strategy Notes

For Sellers
This is a market that demands pricing discipline. Homes that launch at market value are still selling, but overpricing by even 3% can extend days on market dramatically. Cleaning, repairs, and professional marketing aren’t optional anymore; they’re a necessity. If you’re not getting showings in the first two weeks, it’s time to revisit your strategy.

For Buyers
You’ve got leverage, but only if you’re prepared. Pre-approvals, clean offers, and thoughtful negotiation tactics are being rewarded. Don’t expect massive discounts, but do expect flexibility, especially on listings that have been sitting for more than 30–45 days.

Final Thoughts

The Coachella Valley market in September is not frozen. It’s recalibrating. That makes it a perfect environment for strategic action. Whether you’re looking to enter, exit, or reposition in this market, there’s opportunity, but only if your approach is sharp. Let’s talk.