Palm Springs luxury homes see price drops as market cools

In Palm Springs, two upscale listings have recently trimmed their prices, together shaving $70,000 off the combined asking amount. The first, a 2023 custom build of 2,907 square feet with three bedrooms and four baths, dropped $30,000 to $1.555 million; it sits on a 0.41-acre corner lot with mountain vistas and includes high ceilings, multiple primary suites, and an Airbnb-ready setup. The second property, a renovated 1,887-sq-ft mid-century modern home from 1961, reduced its price by $40,000 to $1.598 million, offering four bedrooms, a pool, solar panels, and a separate guest wing.

These cuts mirror a cooling trend after a pandemic-fuelled buying frenzy that pushed prices sharply upward. Zillow now estimates the average home value in Palm Springs at about $619,600, down 1.7% year-over-year, while listings stay on the market roughly 56-70 days before sale. Redfin describes the market as “somewhat competitive,” with only about 10% of homes selling above list price, indicating buyers have gained negotiating power in this once-hot luxury enclave.