Palm Springs home prices decline as buyer negotiating power increases

Average single family home prices in Palm Springs dropped 1.4 percent year on year in September 2026, the Palm Springs Tribune reported. According to the September 2026 Desert Housing Report from Greater Palm Springs REALTORS, the estimated price for an average-sized single family home fell to $1,102,246. The report noted that home values remain well below their 2022 peak levels. [1]

The price decline comes alongside slower sales activity and shifting inventory levels as the market enters its fall season, according to the Palm Springs Tribune. These conditions are creating greater negotiating opportunities for home buyers compared with recent years. Palm Springs is located in Riverside County, California, within the Coachella Valley. [1][8]

The shifting market leverage in Palm Springs aligns with broader national trends. As FTMQ Real Estate reported earlier, home sellers outnumbered active buyers across the United States by 62.6 percent in September 2026. That gap expanded from 56.9 percent in August, reaching a 13 year high for buyer negotiating leverage. [11]

Market participants in Palm Springs are entering the traditional peak desert season with increased buyer leverage, the Palm Springs Tribune reported. Local real estate metrics indicate that the fall market is establishing lower price baselines ahead of expected seasonal activity. [1]