Palm Springs, CA 92262 Real Estate Market Report

ZIP Code: 92262
Report Date: February 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

As of February 2026, the real estate market in Palm Springs, CA is characterized by a median sold price of $982,000, reflecting a stable yet slightly softening market dynamic. The neighborhood has decreased 8% since 2022, indicating a shift in buyer sentiment and market conditions. The current median days on market stands at 176, suggesting a slower sales velocity and extended time frames for property transactions.

Inventory levels are elevated, with excess supply relative to sales activity contributing to a more balanced market. Although the median listing price is recorded at $986,750, the gap between listing and sold prices may indicate pricing friction as sellers adjust expectations in response to market realities. Despite these challenges, the overall demand remains robust, particularly from out-of-state buyers seeking lifestyle changes, which may support modest price appreciation throughout 2026.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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Property Taxes

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Liquidity & Velocity

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Market Trends & Context

Understanding Market Temperature

A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates near Palm Springs, CA, average around 6.13% as of mid-February 2026, which is 0.74% lower than the 6.87% average seen one year ago.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. The median sold price is $982,000, reflecting a slight decrease of 8% since 2022, indicating softening market conditions.

2. With a median days on market of 176, the market is experiencing slower sales velocity, suggesting potential buyer hesitance.

3. The median listing price of $986,750 shows a notable gap compared to sold prices, indicating potential pricing friction as sellers adjust expectations.

4. Elevated inventory levels suggest moderate market balance, with excess supply relative to sales activity.

5. Despite a median market rent of $2,376, rental prices are experiencing minor annual decreases, reflecting downward pressure in the rental market.

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Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.