Palm Springs' luxury housing market is cooling after a pandemic-era boom, with home prices falling, properties taking longer to sell, and significant price cuts observed on upscale homes. The market, once fueled by low mortgage rates and remote work, now shows signs of balance with increased inventory.
A new report indicates that homes with heat pumps can see a sales price increase of 0.6% to 1%, translating to $2,300-$3,900. Homeowners may recoup up to 25% of the heat pump's cost by highlighting it in listings, driven by economic benefits and energy efficiency.
Homeowners withdrew an estimated $47 billion in home equity during the first three months of 2026, the highest first-quarter figure since 2021. This trend is driven by substantial equity built during the early 2020s housing boom and homeowners' reluctance to give up low mortgage rates.
Morgan Stanley's January prediction of a 10% rise in secondary home values has moved from a non-consensus call to alignment with industry experts, though skepticism persists due to years of false dawns and geopolitical threats. Hong Kong's residential sector held 17,500 units of excess inventory last month, down from 23,000 at the start of 2025, while new completions are expected to reach 17,000 units in 2026 versus 24,300 in 2024.
