Thinking about buying or selling a home in Riverside? You're probably wondering what's happening in the Riverside housing market. Well, here's the straight scoop: it's a market that's seeing some shifts, with prices slightly down but homes still selling, albeit taking a bit longer than last year.
I've been watching Riverside closely. It's a place many people love to call home, with its sunny weather and access to both mountains and beaches. But like any market, it has its own rhythm, and right now, that rhythm is a little more measured.
The Riverside Housing Market: What You Need to Know Right Now
Home Sales: A Slowdown, But Not a Stop
Let's talk about how many homes are actually changing hands. According to Redfin, in July of this year, there were 190 homes sold in Riverside. Now, that might sound like a lot, but it's actually a little less than the 197 homes sold during the same time last year. This slight dip in the number of sales tells us that things might not be moving quite as fast as they were a year ago. It's not a huge drop, but it’s enough to notice.
Think of it like this: last year, it felt like a speedy race with lots of runners crossing the finish line. This year, it’s more like a steady jog. People are still buying and selling, but the pace has eased up a bit.
Home Prices: A Slight Dip
Now, for the big question on everyone's mind: are home prices dropping? In Riverside, the answer is a bit nuanced. The median sale price for a home in Riverside last month was $645,000. This is a decrease of 2.3% compared to last year.
So, yes, prices have pulled back a little. This doesn't mean homes are suddenly cheap, but it does mean that buyers might find slightly more room to negotiate than they would have a year ago. For sellers, it means that while your home's value might not be skyrocketing as it might have been recently, it's still a significant investment.
The price per square foot has also seen a slight decrease, down 3.9% from last year, landing at $383. This reinforces the idea that the market is adjusting.
Is Riverside a Buyer's Housing Market in 2025?
This is a question that often gets thrown around, and it really depends on your perspective. Right now, the Riverside housing market is described as somewhat competitive. Homes are selling, but they're taking longer. Last month, homes sold in an average of 50 days, which is up from the 31 days it took last year.
This increase in how long homes are on the market suggests that buyers have a little more breathing room. They have more time to consider their options and perhaps make an offer without the intense pressure of bidding wars that characterized a hotter market.
- For Buyers: This could be good news. With homes staying on the market longer and prices softening slightly, you might have a better chance of finding the right home at a price that works for you. You also have more time to get your financing in order and do your due diligence.
- For Sellers: While it's not a full-blown buyer's market, it's not a seller's paradise either. Homes are still selling, but you might need to be more strategic with your pricing and presentation to attract buyers. It's important to work with a good agent who understands the current local conditions.
Housing Supply: More Homes on the Market?
While the data provided doesn't give a direct number for overall housing supply, the fact that homes are staying on the market longer does often indicate that there might be more homes available for buyers to choose from, or at least a slower pace of demand absorbing that supply. When homes sit longer, it can be a sign that inventory is increasing or demand has cooled off enough that buyers aren't snapping everything up instantly.
Market Trends: What's Driving Things?
Several factors are influencing the Riverside housing market. One of the biggest players is the impact of high mortgage rates.
According to Freddie Mac's Primary Mortgage Market Survey, as of September 11, 2025, the average 30-year fixed mortgage rate was around 6.35%, and the 15-year fixed-rate mortgage was about 5.5%. While these rates might still seem high compared to historical lows, the good news is that they have been trending downward. In fact, the 30-year fixed-rate mortgage recently dropped 15 basis points, which was the largest weekly decrease in a year.
This downward trend in mortgage rates is a positive sign for both buyers and sellers. For buyers, lower rates mean their monthly payments could be more manageable, potentially making homeownership more attainable. We've already seen an increase in purchase applications, showing that homebuyers are noticing and responding to these improving conditions.
Forecasters expect the 30-year fixed-rate mortgage to end 2025 somewhere between 6.0% and 6.5%. If rates continue to moderate, it could provide that extra push for hesitant buyers to enter the market.
It's a bit of a balancing act. While mortgage rates are improving, affordability can still be a challenge for many. However, with the combination of moderating house prices and potentially rising inventory, the market is starting to look more favorable for those looking to buy.
Who's Moving Where?
It’s also interesting to look at who is moving into and out of Riverside. From June to August 2025, about 77% of homebuyers in Riverside were looking to stay within the metropolitan area. This shows a strong desire to remain in Riverside.
When people do move into Riverside, the data suggests they're coming from places like Houston, Washington D.C., and Boston. On the flip side, if people are leaving Riverside, their top destinations are San Diego, Las Vegas, and Bakersfield. This kind of migration data can offer clues about the economic factors and lifestyle preferences that are driving these moves.
What This Means for You
As I see it, the current Riverside housing market is in a state of adjustment. It's moving away from the super-heated frenzy of recent years and settling into a more balanced rhythm.
- If you're a buyer: This is a good time to be patient and diligent. You might have more options and a better chance to negotiate. Keep an eye on those mortgage rates – a slight decrease can make a big difference in your monthly payment.
- If you're a seller: It's crucial to price your home realistically and make sure it's in top condition. Work with an experienced agent who can help you navigate these slightly cooler waters. Highlighting your home's best features and understanding what buyers are looking for in today's market will be key.
Riverside Housing Market Forecast 2025-2026: What's Coming Up?
The Riverside housing market forecast suggests a mixed bag. While there's been a slight dip recently, experts predict things will stabilize and even slightly improve over the next year or so. The average Riverside-San Bernardino-Ontario home value is currently $587,873, which is down 1.2% from last year. Homes are going under contract in about 31 days. So, let's dig into what the future might hold.
Diving into the Numbers: Riverside's Predicted Path
Let's look at the forecasts from Zillow and what they suggest for Riverside.
- Short-Term (August 2025): Zillow predicts a slight decrease in home values of 0.2% by the end of August 2025.
- Mid-Term (October 2025): The forecast indicates a slightly bigger decrease of 0.4% by the end of October 2025.
- Long-Term (July 2026): Here's some potentially good news! The forecast shows a positive change of 0.3% over the year leading up to July 2026.
Here is the table with the details:
| Region | Forecast Period | Predicted Change (%) |
|---|---|---|
| Riverside, CA | August 31st, 2025 | -0.2% |
| Riverside, CA | October 31st, 2025 | -0.4% |
| Riverside, CA | July 31st, 2025-July 31st, 2026 | 0.3% |
Riverside vs. The Rest: How Does it Compare?
Let's see how Riverside stacks up against other major California cities:
| Region | August 2025 | October 2025 | July 2026 |
|---|---|---|---|
| Los Angeles | -0.1% | 0% | -0.1% |
| San Francisco | -0.6% | -1.7% | -4.1% |
| Riverside | -0.2% | -0.4% | 0.3% |
| San Diego | -0.3% | -0.9% | 0.2% |
| Sacramento | -0.3% | -1.0% | -2.3% |
| San Jose | -0.3% | -0.8% | -1.5% |
| Fresno | -0.1% | -0.1% | 0.1% |
| Bakersfield | -0.1% | 0% | 1.0% |
| Oxnard | -0.2% | -0.6% | -0.9% |
| Stockton | -0.5% | -1.3% | -2.2% |
| Modesto | -0.3% | -0.7% | -1.2% |
As you can see, Riverside is showing more resilience than some of the pricier coastal markets like San Francisco and San Jose. This could be due to its relative affordability and continued demand.
What the Experts Say: The Bigger Picture
It's not just about Riverside. The National Association of Realtors (NAR) also has some insights. Their Chief Economist, Lawrence Yun, believes better times are ahead! He’s forecasting:
- Existing Home Sales: Up 6% in 2025 and a whopping 11% in 2026.
- New Home Sales: Up 10% in 2025 and another 5% in 2026. This is important because more new homes can help ease the housing shortage.
- Median Home Prices: A modest increase of 3% in 2025 and 4% in 2026. This is a good sign of a more stable market.
- Mortgage Rates: Expected to average 6.4% in the second half of 2025 and drop to 6.1% in 2026. Lower rates could definitely encourage more buyers.
Will Home Prices Crash in Riverside? My Take
Based on the data, a housing market crash in Riverside seems unlikely. The forecasts point to a period of price stabilization with potential for modest growth. The key factor to watch is mortgage rates. If they come down as predicted, it could stimulate demand and push prices up slightly. Keep in mind that housing market forecasts are always just educated guesses; unforeseen events can change everything.
Looking Ahead to 2026: A Possible Scenario
If the trends continue, the Riverside housing market in 2026 could see:
- Slightly higher home prices.
- More homes being bought and sold.
- A more balanced market, where buyers and sellers have more negotiating power.
Ultimately, the best advice is to do your research, talk to a local real estate agent, and make decisions that are right for your individual circumstances. Good luck!
Recommended Read:
