Palm Desert

Will Palm Desert Home Prices Fall in 2024?


Housing Market Predictions: Will Home Prices Drop in 2024?

Palm Desert is a city in California that is known for its golf courses, resorts, and sunny weather. It is also a popular destination for retirees, snowbirds, and vacationers. But what will the future hold for the Palm Desert housing market? Will home prices fall in 2024, or will they continue to rise?

There is no definitive answer to this question, as there are many factors that affect the supply and demand of real estate. However, based on some of the current trends and projections, we can make some educated guesses and scenarios. Here are some of the key factors that could influence the Palm Desert home prices in 2024:


Palm Desert has a population of 53,275 with a median age of 54.3 years, indicating a significant proportion of older residents, particularly baby boomers nearing retirement. As more baby boomers retire, they may sell their homes and downsize or relocate, leading to increased housing supply and potentially lower prices. However, some baby boomers may choose to stay or purchase second homes in Palm Desert, contributing to demand and supporting prices. Additionally, Palm Desert may attract younger buyers seeking affordable and spacious homes, especially with the rise of remote work. This could further drive up demand and prices in the area.

Interest rates: 

Interest rates have a major impact on the affordability and attractiveness of real estate. Lower interest rates make mortgages cheaper, and encourage more buyers to enter the market. Higher interest rates make mortgages more expensive, and discourage buyers from taking on debt. According to the Federal Reserve, the federal funds rate, which influences the mortgage rates, is expected to remain near zero until at least 2023, as the economy recovers from the pandemic. This means that mortgage rates are likely to stay low for the next few years, which could stimulate the demand for homes in Palm Desert, and push up the prices. However, if the economy overheats, or inflation rises, the Federal Reserve may have to raise the interest rates sooner than expected, to cool down the growth and maintain the price stability. This could dampen the demand for homes in Palm Desert, and pull down the prices.

 Economic indicators: 

The state of the economy affects consumer income and confidence, which impacts their willingness to buy or sell homes. A strong economy with low unemployment, high income growth, and low inflation is favorable for the real estate market. However, a weak economy with high unemployment, low income growth, and high inflation poses challenges for the real estate market. In Palm Desert, the unemployment rate was 9.8% in March 2021, higher than the national average of 6%. This suggests that the Palm Desert economy has been hit hard by the pandemic and has not fully recovered. But as vaccinations increase and businesses reopen, the Palm Desert economy may bounce back, creating more jobs and income. This could improve sentiment and demand for homes, raising prices. Conversely, if the pandemic worsens or new variants emerge, the Palm Desert economy may suffer another setback, reducing income and demand for homes and lowering prices.

Government policies and legislation: 

The government can influence the real estate market through various policies and legislation, such as tax incentives, deductions, subsidies, regulations, and zoning laws. These policies can either stimulate or hinder the demand and supply of real estate, depending on their design and implementation. For example, the Tax Cuts and Jobs Act of 2017 reduced the mortgage interest deduction limit from $1 million to $750,000, and capped the state and local tax deduction at $10,000. These changes made homeownership less attractive for some high-income and high-tax buyers, especially in states like California, where home prices and taxes are high. This could reduce the demand for homes in Palm Desert, and lower the prices. On the other hand, the American Rescue Plan Act of 2021 provided $1.9 trillion in stimulus spending, including direct payments, unemployment benefits, rental assistance, and homeowner assistance. These measures helped many households cope with the financial hardship caused by the pandemic, and prevented many foreclosures and evictions. This could support the demand and supply of homes in Palm Desert, and stabilize the prices.

In conclusion, the question of whether Palm Desert home prices will fall in 2024 is not easy to answer, as there are many factors that could influence the supply and demand of real estate in the city. Based on some of the current trends and projections, we can make some educated guesses and scenarios, but we cannot make any definitive or precise predictions. The best we can do is to monitor the market closely, and be prepared for any changes or opportunities that may arise.


Homes in PALM DESERT area

Palm Desert offers homes in various architectural styles, custom builds, and even raw land to build your one-of-a-kind dream home. If you want to know more about what’s available to buy in Palm Desert, check out these luxury listings currently on the market with virtual showings.

Homes for sale around the Palm Desert Area

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