Palm Desert is located at the base of the Santa Rosa Mountains, a conclave of some of the most exclusive homes for sale in Southern California. The premier golf communities in this resort-style desert oasis offer fairway and mountain views that appeal to wealthy buyers seeking luxury Palm Desert CA homes for sale. Here are some market trends that help grow the Palm Desert’s real estate:
Affluent out-of-state buyers flock to the desert
Palm Desert has seen a surge in affluent homebuyers due to the ease of remote work, separating high-income residents from tech hubs and financial centers. Drawn to the city’s prized year-round sunshine and ample amenities for outdoor recreation, these buyers have the means to pay top dollar for properties. Luxury home communities with golf course access or stunning desert panoramas are in high demand.
Migration diversifies the market beyond retirees
The past several years have seen a change in the demographics of homebuyers in Palm Desert, which is well-known for its warm climate and low taxes. Families and younger professionals looking for a better work-life balance and more space discovered this enclave in the desert. Palm Desert ticks all the boxes: beautiful landscapes, hiking trails, excellent dining and arts, and easy access to major cities. Palm Desert offers resort-style living without the big-city price tag, enticing buyers of all ages.
Home prices rise over 30% while supply stays limited
The surge of out-of-state transplants moving to Palm Desert and few homes being built over the past decade created the perfect supply-demand imbalance to drive prices up at a head-spinning pace. The median price of single-family homes increased by 54% in three years, from $389,000 at the end of 2019 to over $600,000 by fall 2022, according to the Regional Multiple Listing Service. The Palm Desert market is experiencing high demand despite potential price moderating as rates increase.
New developments cater to younger buyers and renters
Palm Desert attracts millennial and Gen Z homebuyers and renters to capitalize on its growing popularity among younger residents. Downtown Palm Desert has added hip apartment complexes with co-working spaces and fitness centers to cater to this demographic. Several master-planned communities with contemporary architecture and homes built for multigenerational living make purchasing property easier for younger buyers. Palm Desert is becoming more than a sleepy retirement community, thanks to its downtown revitalization and modern construction.
Palm Desert CA real estate market
Despite rising interest rates and economic uncertainty, Palm Desert’s real estate market remains strong. Home prices continue climbing, with the median price over $600k, up 10% from last year. Inventory remains low, with high demand from buyers relocating from coastal cities. New construction is booming to meet demand, though some experts worry about an oversupply if the market softens.
Palm Desert CA luxury homes
The luxurious residences in Palm Desert provide breathtaking views of the surrounding desert terrain at the foot of towering mountains. The sprawling estates with private pools and patios capture the area’s sunny weather. Custom details like chef’s kitchens, home theaters, and lavish master suites cater to owners seeking comfort and extravagance amongst the tranquility of the California desert.