You know that moment at Thanksgiving when someone casually asks, “So… how’s the housing market?” and suddenly you’re explaining interest rates, inventory levels, and Zillow estimates like it’s your side gig?

This year has been full of those conversations.

And while the headlines love drama, the actual data tells a very different, much calmer story — especially here in the Desert Cities.

So today, I’m breaking down what’s happening nationally, what’s happening locally, and what the numbers really say about home values as we head into 2026.

⭐ NATIONAL SNAPSHOT

Source: NAR, Zillow, ATTOM

Let’s start with the bigger picture:

✔ Existing home sales rose 1.2% in October, reaching a 4.10M annual pace

✔ Sales are 1.7% higher than one year ago

✔ The national median home price climbed to $415,200

✔ Inventory sits at 4.4 months of supply

Low inventory remains the stabilizing force behind today’s home prices. Even with higher borrowing costs, supply simply hasn’t caught up to demand.

🟣 LOCAL MARKET SNAPSHOT — DESERT CITIES (Nov 2025)

Based on month-to-date MLS data.

Here’s what’s happening across the 9 Desert Cities — Palm Springs, Palm Desert, Rancho Mirage, La Quinta, Indio, Cathedral City, Indian Wells, Desert Hot Springs, and Coachella.

Active + Coming Soon

• 3,260 homes available

• Average list price: $1.109M (after removing two ultra-luxury outliers at $65M and $85M that totally distorted the numbers)

• Average days on market: 70

• Months of inventory: 4.43 MOI

A quick note on that 70 days on market: a lot of this comes from homes that came out too high, sat, had to reduce, and then sold once they caught up with the market. When a home is priced right from day one, the best shot to sell is still in the first 7–10 days.

With 4–6 months of inventory considered “neutral,” our 4.43 months puts the Desert Cities in that sweet spot between seller-favored and fully balanced—more choices for buyers, but nowhere near a distressed or oversupplied market.

Under Contract + Pending

• 736 escrows in motion
  Buyers are absolutely writing offers — they’re just more selective and condition-conscious.

Month-to-Date Closings

• 531 closed sales

• Average sale price: $928,000

Year-over-Year Comparison (10/30–11/30)

• 2024: 535 sales at $866,379

• 2025: 531 sales at $928,000

➡️ Average sale price is up by more than $61,000 year over year.

💡 What this means:
Even though buyers are pickier and days on market are a touch longer, pricing in the Desert Cities continues a steady upward trend — with a few neighborhoods seeing small dips for specific reasons, but no broad decline.

🟣 Q3 WAS FLAT — NOT FALLING

Let’s clear up the biggest misconception floating around right now:
No, Q3 home values didn’t drop.

In fact, they remained almost perfectly steady.

Q3 2025

• 1,560 sales

• Avg sale price: $836,172

• Avg sold $/sqft: $366

• Days on market: 73

Q3 2024

• 1,589 sales

• Avg sale price: $779,225

• Avg sold $/sqft: $367

• Avg sq ft (2024): 1,965

• Avg sq ft (2025): 2,020

• Days on market: 61

How to interpret this (in human terms):

Prices did not fall — not in 2024, not in 2025.
The $1 difference in sold price per square foot shows that home values were essentially flat.

What changed this year was the size of the homes being sold. Larger homes → higher total sales prices — which is why the average sale price appears higher while the $/sqft stays steady.

And yes, homes are sitting on the market a little longer. That’s real. But a slower market is not a falling market.

❓ Are home values really dropping? Will this hurt my equity?

This rumor comes from Zillow’s recent finding that 53% of US homes dipped in value from their peak in early 2022.

Sounds scary — until you look deeper.

Here’s the real story:

• Home values skyrocketed for six straight years

• A mild step back from peak pricing is normal

• The average decline from peak is only 9.7%

• After 2008, the average drop was 27%

• Only 4.1% of homes nationwide are currently valued below their last sale price

• The typical US homeowner has gained 67% equity since they bought

And locally?

The Coachella Valley mirrors this stability.
Average prices are up year-over-year, Q3 values were flat, and the only dips we’re seeing are hyper-localized and explainable.

❓ I heard foreclosures are rising. Is this another 2008?

Short answer: No.

ATTOM’s newest report shows:

• 36,766 foreclosure filings nationwide

• Up 3% from September

• Up 19% from last year

• But still far below normal historic levels

• Completed foreclosures remain extremely low

Most of the “increases” are simply a return to pre-pandemic reporting patterns.

Locally:

Distressed sales remain rare in the Desert Cities thanks to strong equity and stable lending standards.

❓ What’s with the 50-year mortgage everyone is talking about?

It went viral online — but it’s not real.

A 50-year mortgage is:

• Not legal under current federal rules

• Not allowed under QM guidelines

• Not offered by any lender

Even if it became legal someday, it would dramatically slow equity growth.

Right now, this is just a clicky headline — not a real product.

❓ Can I take my 2–3% mortgage rate with me if I move?

This is the “portable mortgage” idea — and homeowners love it.
FHFA is studying it, but:

• There’s no official approval

• Current mortgage notes explicitly prohibit portability

• Lenders can’t offer it yet

If this ever becomes real? I’ll be shouting it from the rooftops.

🔮 What to Expect in 2026

NAR’s latest forecast gives us a pretty optimistic outlook:

• Home sales up 14%

• Prices rising 3% (2025) and 4% (2026)

• Rates easing toward ~6%

• Mortgage applications up 31% year-over-year

Translation?
Buyer demand is quietly building.
Once rates ease, activity should pick up quickly.

🌵 Final Takeaway for the Desert Cities

Our market remains:

• Stable

• Desirable

• Supported by strong equity

• Bolstered by lifestyle demand

• Sitting in a neutral 4–6 month inventory range rather than a “crash” scenario

• And insulated from major price swings

If you’re planning a move — whether buying, selling, downsizing, or purchasing a vacation home — the data is much more encouraging than the headlines suggest.

And if you want to talk through your plans for 2025 or run numbers specific to your property or neighborhood, I’m here and happy to help.

👋 Ready to Make a Move — or Just Curious About the Market?

Let’s connect. I’m here to help you navigate the Desert Cities with confidence and clarity.

👋 Want to talk through your options—no pressure? Let’s chat: 👉 https://calendly.com/lisa-angell-ooae/30-minute-meeting-with-lisa Or check out more guides + resources here: 👉 https://stan.store/palmspringshomes

Lisa Angell, REALTOR® | LPT Realty | CA DRE#02122706 | Equal Housing Opportunity