August 2025 Hi-Desert Real Estate Market Update
Warm Greetings, Fans,
When I first started in real estate, I would tell people that you could count on your fingers how many days a year we broke 100° and, even better, every night we cool into the low 60°s (in Yucca Valley). We have started August with a forecast of fourteen straight days over 100°. Worse, for me at least, is the lows. Forecasted in the mid 70°s. The times they are a-changing.
Two good things in this month’s Update, and two not-so-good things. First good: we closed on 102 homes last month. This is the most closings since August of 2023. Two years to break 100 closings. Second good: inventory is dropping, at this writing we have 755 active listings in our communities. In mid-May we crossed over to more than 900 active listings. First bad: 80% of sales were below $400,000. Second bad: Active, under contract, and pending sales have hit lows. In the July Update we had combined numbers of 161. In this Update, we have 130. These are some of the lowest I have seen. Both of these numbers represent the future of closed escrows. It makes sense, mathematically, that the high numbers last month corresponded with higher closings. With the low numbers, we can expect lower closings in August.
The inventory drop is happening nationwide. Sellers are frustrated and tired of trying to sell. Many are moving to the sidelines to watch the future. I expect we will drop close to 700 by the end of summer. I don’t see anything in the near future that will move our closings up.
On an older note. I have been banging the drum on the benefits of warehouses being built off Interstate 10 and Indian Ave. The Palm Springs Planning Commission just approved the construction of over 2mil square feet of warehouse to be built in North Palm Springs. Desert Hot Springs has greenlighted the almost-operational Amazon warehouse and construction of a second warehouse of 1.2mil square feet. Currently, eight warehouses are in some planning stage. This could really change the west end communities as some of the potential employees could look to live in the High Desert. You can read more here:
https://thepalmspringspost.com/planning-commission-approves-massive-warehouse-project-despite-environmental-concerns-2/
Other than the above-mentioned items, highlights of this month’s Update include:
- With the increased closings last month, we are now behind last year’s closings by only six.
- Yucca Valley and Twentynine Palms saw a drop in average prices last month. Joshua Tree saw a small increase.
- All three communities saw a drop in price per square foot.
- All three communities saw a drop in Days Active in the MLS. All three remain above national averages. Meaning it takes longer to sell in our area.
As always, if you know someone who is looking to buy or sell in our area, please share my contact. We can always find a solution to meet your friends and family’s needs.
Thank you for reading and sharing these Updates.
Sincerely,
Bob Armstrong
(760) 221-2999
DRE #01275801
GREEN Real Estate Group
Bob Armstrong
