Published October 4, 2026 in Market Update

Palm Springs inventory fell even as more homes sold

By Benjamin Melendez Nogueras

Real estate, Palm Springs

The Real Estate Data Aggregator counted 624 homes for sale across Palm Springs in the three months ending July 31, 2026. That is down 17.6% from the same months of 2025. Nationally, Realtor.com reported active listings grew 5.5% year over year, topping 1.16 million homes for sale. Palm Springs moved the opposite direction.

For homeowners, fewer listings means a well priced home has less competition. For buyers, it means fewer choices here, even as the rest of the country sees more options.

More homes sold, even with less to choose from

The Real Estate Data Aggregator counted 425 homes sold across Palm Springs in the three months ending July 31, 2026. That is up 2.9% from the same period a year before. Demand did not disappear. It just had fewer homes to work with.

The two ZIP codes tell slightly different stories

Palm Springs covers two ZIP codes: 92262 and 92264. They moved in the same direction on inventory, but prices went different ways.

In 92262, the Real Estate Data Aggregator put the median sale price at $640,000, down 9.4% from a year before. That is a real dip, and worth knowing if you are pricing a home there. In 92264, the median came in at $667,000, up 7.6%. Same city, two different price moves.

Homes are selling a little faster and a little closer to asking

In 92262, the Real Estate Data Aggregator recorded a median of 77 days on market. That is 8 days shorter than the same period in 2025. Homes sold at an average of 96.8% of list price, up 0.5 points year over year.

In 92264, the median was 78 days on market, also 8 days shorter than a year before. Homes there sold at 96.4% of list price, up 0.8 points. Not every home sold fast, but the trend moved in a positive direction in both ZIPs.

New listings pulled back too

The Real Estate Data Aggregator counted 443 new listings across Palm Springs in the three months ending July 31, 2026. That is down 10% from the same months of 2025. In 92262 alone, new listings fell 14.2%. In 92264, they fell 2.7%. Sellers are holding back, which is part of why active inventory shrank.

Rates are making buyers think twice nationally

CNBC reported the average contract rate on a 30-year fixed mortgage hit 7.30% as of September 30, 2026. Mortgage News Daily put the rate even higher at 7.58% that same day. Realtor.com noted rates topped 7% for the first time since January 2025.

Higher rates slow decisions. The Real Estate Data Aggregator counted 408 pending sales across Palm Springs in the three months ending July 31, 2026, down 4% from the year before. Buyers are still moving, just more carefully.

A quick look at what went under contract fast

The Real Estate Data Aggregator found that 14.8% of homes in 92262 went under contract within two weeks of listing. That is up 0.9 points from a year before. In 92264, 16.2% of homes moved that quickly, though that share slipped 0.8 points year over year. Most homes did not move in two weeks, but the share that did is holding steady.

What this means if you own here

Palm Springs is heading into season. October through Memorial Day weekend is when the most homeowners and visitors come back. Inventory is already thin. A well priced home will face less competition than it would have a year ago.

Realtor.com reported 20.8% of listings nationally had price cuts in September, the highest share since October 2022. That is a national number, not a Palm Springs number. But it is a reminder that price still matters everywhere.

One street can read very differently from the ZIP code around it. The numbers above cover broad areas. Your block may tell a different story.