Home prices drop as inventory climbs

The latest Desert Housing Report for September 2025 reveals a continuation of the trend from last month as the expected seasonal price downturn takes effect and inventory climbs.

Driving the news: In Indio, the median price of an average-sized detached home last month was $618,000, down 2% compared to the year before. Indio’s attached home prices averaged about $280,000, down nearly 3% compared to last year.

Zoom out: The median price of a detached home in the valley is $625,000, a 2% decrease from the year before. Every city except for Cathedral City saw lower median prices for detached homes in August compared to the year before.

Context: Prices in the valley usually hit their seasonal low in autumn and their high in spring. 

Days in market: Homes in the valley are taking about 59 days to sell, while in Indio, homes take about 65 days to sell, the third longest number of days on market in the valley.

What else: In Indio, inventory increased by 18% compared to last year with 415 homes for sale compared to 353 the year before. 

• Valleywide, inventory is up nearly 16%, with 2,799 detached and attached units available at the start of this month.

What that means: The report analyzed the “months of sales” ratio and found that supply is starting to exceed demand in almost all price brackets.

In the weeds: Homes have been selling at a slightly higher discount. Detached homes in the valley sold at an average discount of 2.7% below asking compared to 2.1% below asking last year. Plus, fewer homes are selling above asking price.

In the news: After the first full week of the government shutdown, the mortgage rate is hovering near 6.3% for a conventional 30-year fixed mortgage. Experts warn a protracted shutdown could start to affect housing transactions. Meanwhile, Federal Reserve policymakers discussed the housing market and some argued for lower rates, according to meeting minutes.

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