July 2026 Hi-Desert Real Estate Market Update
Happy July Real Estate Fans,
If you are looking for fireworks in our local real estate market, you will be disappointed. Through the first half of the year, we are behind last year in sales. Remember last year was one of the worst years for sales in our communities since I have been keeping records (2013).
A common issue across the country is overpricing properties. As an example in our local market, we have approximately 700 active homes listed for sale in our local market. For this discussion, I will focus on the three larger markets in our community.
The average list price and price per square foot in Yucca Valley shows a difference of approximately 18% for both. In Joshua Tree, the average list price is 32% higher than sales and price per square foot shows a difference of approximately 28%. In Twentynine Palms, the average list price is 42% higher than sales and price per square foot shows a difference of approximately 26%. It is a fact that homes priced correctly sell more quickly.
One of the other big issues in our market is interest rates. As noted in the box above, the average price of a home is very expensive in two of three of our larger markets. Our communities offer limited income opportunities (read: jobs). Locals have quickly been outpriced to purchase real estate. Rents seem to have stabilized since many vacation home renters have switched to monthly rentals. Currently there is little incentive to purchase when you can rent for less. Today interest rates are the highest they have been this year. It is hard to see anything in the near future that will change this.
In my opinion, our local real estate market will remain flat for the next two months. We will need an interest rate reduction to see a favorable fall market. If we don’t see a reduction, I would expect sales to remain slow until next spring.
Highlights of the July Update include-
- At the midpoint of the year, we are 10% behind last year’s sales.
- The most expensive home sold by price is $850,000 and is in Yucca Valley.
- Average days on the MLS is in line with national averages for the first time in months. This is most likely caused by disenchanted sellers removing their homes from the market. We seem to have stabilized around 700 active listings. In May of 2025 we fell just short of 900 active listings. It appears many sellers have decided to stay put until this works out.
If you are a vacant land investor, take note of the vacant land update included. In summary, we have 1,220 parcels of land actively for sale in our MLS. Last month, which was a good month for vacant land sales compared to the rest of the year, we closed on 28 parcels!
As always, there is a winning strategy for buyers and sellers in our current market conditions. If you know of someone looking to buy or sell, please put them in contact with me. I would enjoy the opportunity to work for them.
Sincerely,
Bob Armstrong
(760) 221-2999
DRE #01275801
GREEN Real Estate Group
Bob Armstrong
