Riverside Housing Market: Trends and Forecast 2025-2026

Are you considering buying or selling a home in Riverside, California? The Riverside CA housing market has shown some interesting trends recently, making it a good time to understand the current situation. Riverside CA housing market trends indicate that the market is somewhat competitive, with home prices rising and inventory levels remaining tight. However, there are some nuances that are important for both buyers and sellers to consider. Let's dive deeper into the key aspects of the Riverside housing market in 2024.

Riverside CA Housing Market Trends:

Home Sales

In October 2024, the Riverside CA housing market saw a significant increase in the number of homes sold compared to the same time last year. According to Redfin, there were 177 homes sold in October 2024, up from 133 in October 2023, representing a 33.1% year-over-year increase. This suggests that demand for homes in Riverside remains relatively strong, with buyers eager to take advantage of opportunities in the market.

Having lived in Riverside for several years now, I've noticed the gradual increase in the number of buyers. There's a mix of families looking for larger houses with good school districts and young professionals who are drawn to the city's growing economy and affordability compared to nearby cities like Los Angeles and San Diego. This influx of buyers has undoubtedly contributed to the increase in home sales.

Based on my observations, the increased sales could also be linked to the improved economic conditions and lower interest rates that we've experienced in recent months. A combination of these factors could be stimulating buyer activity and contributing to this upswing in home sales.

However, it's essential to note that while sales have risen, the average time it takes for a home to sell has also increased slightly. Homes are now taking about 35 days to sell, up from 31 days in 2023. This suggests that the market might be starting to cool down a bit compared to the rapid pace seen earlier in 2023.

Home Prices

The Riverside CA housing market has experienced a steady rise in home prices over the last year. As of October 2024, the median sale price of a home in Riverside was $650,000, reflecting a 5.7% increase from the previous year. This upward trend in prices is in line with broader regional and national trends, with the housing market in Southern California still experiencing a strong demand.

It's crucial to understand that while prices are increasing, the median sale price per square foot has decreased slightly by 3.3% year-over-year to $383. This potentially indicates that price growth might be slowing down or that buyers are becoming more price-sensitive.

I believe that the rise in home prices can be attributed to a number of factors. Firstly, the relatively limited housing supply in Riverside continues to create a competitive environment where buyers are often forced to make offers above the asking price to secure a home.

Secondly, the growing popularity of Riverside as a more affordable alternative to other major cities in the region has also contributed to increased demand and price appreciation.

Housing Supply

One of the key factors influencing the Riverside CA housing market is the limited supply of available homes. While there has been an uptick in sales, the inventory of homes for sale remains relatively constrained. This scarcity of inventory is contributing to the competitiveness of the market and the upward pressure on home prices.

I've spoken to many real estate agents in Riverside, and they consistently confirm that the housing supply is a significant challenge. We haven't seen a dramatic increase in new construction in recent years to accommodate the growing population and demand for housing. This limited supply is expected to continue for some time, leading to a prolonged period of competition in the market.

Market Trends

Several trends are shaping the Riverside CA housing market in 2024. As I mentioned earlier, the market is currently considered somewhat competitive. This is reflected in several factors:

• Sale-to-List Price: The average home in Riverside is selling for about 100.1% of the list price. Although this is a slight decrease from the previous year, it suggests that homes are still selling close to or slightly above the asking price.
• Homes Sold Above List Price: While 46.9% of homes sold above the asking price, representing a decline from last year. This shows a potential shift from a fiercely competitive market to a more balanced scenario.
• Homes with Price Drops: The percentage of homes with price drops has increased to 27.7%, signifying a 6.2% point increase from the previous year. This suggests that sellers might be more inclined to adjust their prices to attract buyers in a slightly slower market.

The Riverside CA housing market is evolving, and these trends suggest a shift from the rapid appreciation and intense competition of the past few years to a more balanced state.

Is Riverside a Buyer's or Seller's Housing Market?

Given the current trends, I would say that the Riverside CA housing market is leaning towards a more balanced or potentially a buyer's market compared to the recent past. Although home prices are still rising, the pace of appreciation seems to be slowing down, the number of homes with price reductions is increasing, and the time it takes to sell a home has slightly extended. This creates a slightly more favorable environment for buyers who can negotiate better deals and take their time to find the right property.

However, it's important to remember that the market is still competitive due to the limited housing supply. Sellers still hold a degree of leverage, but they may need to be more flexible with their pricing and strategies.

Are Home Prices Dropping?

While home prices in Riverside are increasing overall, the pace of growth has slowed down, and we have seen an increase in the number of homes with price reductions. It's important to note that a drop in home prices is not expected at this point in time. However, the current trends indicate that buyers have a slightly better opportunity to negotiate and potentially secure a home at a price that is more favorable compared to the previous year.

In my view, a substantial drop in home prices is unlikely in the immediate future. The limited housing supply and the continued demand from both local and out-of-state buyers will likely continue to support home values. Nevertheless, buyers who are strategic and patient could find themselves in a position to negotiate a better deal or perhaps avoid bidding wars that were prevalent in recent years.

Migration & Relocation Trends

The Riverside CA housing market is also influenced by migration patterns. Data from Redfin suggests that a significant portion of buyers are looking to stay within the Riverside metropolitan area. About 79% of homebuyers in Riverside are looking to stay within the region. However, a notable number of buyers are also searching to move into Riverside from other areas, including San Francisco, New York, and Hermiston.

Riverside's appeal as a relatively affordable option compared to surrounding areas like San Diego, Los Angeles, and Orange County plays a role in attracting homebuyers. Many individuals and families are seeking a more cost-effective lifestyle while still enjoying the amenities and job opportunities in the Inland Empire.

On the other hand, a significant number of Riverside residents are looking to move to other locations. The most popular destinations for outbound migration include San Diego, Las Vegas, and Bakersfield. The reasons for these moves could be diverse, from job relocations to a desire for a change in lifestyle or proximity to family.

Table 1: Riverside Inbound and Outbound Migration

Inbound	Outbound
San Francisco, CA	San Diego, CA
New York, NY	Las Vegas, NV
Hermiston, OR	Bakersfield, CA
El Centro, CA	Nashville, TN
The Dalles, OR	Phoenix, AZ

Climate's Impact on the Riverside Housing Market

Riverside, like many parts of California, faces several natural hazards that could impact the Riverside CA housing market. These include:

• Flood Factor – Moderate: 18% of properties face a risk of severe flooding in the next 30 years.
• Fire Factor – Severe: 81% of properties face a risk of wildfire in the next 30 years.
• Heat Factor – Severe: 87% of properties are at a severe risk of heat in the next 30 years.

It is vital for potential buyers to be aware of these potential risks when considering a purchase in Riverside. While these factors might not directly impact the immediate trends in the housing market, they could influence long-term values and insurance costs.

Furthermore, these potential risks can also influence the decisions of homeowners who are considering selling. If they are concerned about climate risks, they might be inclined to sell sooner rather than later. This could potentially impact the overall inventory and price trends in the future.

Riverside Housing Market Forecast 2025-2026

The Riverside housing market forecast looks pretty stable, with home values expected to see a gradual rise. In fact, Zillow's latest forecast anticipates a 2.9% increase in home values by October 2025. This indicates that the Riverside housing market, while not experiencing explosive growth, will continue to be a relatively stable and desirable place to invest in real estate. Let's take a deeper look at what this forecast means and how Riverside compares with other California areas.

I've been following the real estate market for several years, and I always rely on credible sources like Zillow for their forecasts. Looking at the data from Zillow's forecast for Riverside, we can see the projected change in home values over the next year:

Forecast Date	Projected Home Value Change
November 2024	0%
January 2025	0%
October 2025	2.9%

Based on this, it suggests that the Riverside housing market may be slower to recover than other parts of California in the near future. It's important to remember that these are simply predictions. While Zillow has a good track record in real estate forecasting, several factors can impact the market that even the most sophisticated models might not fully capture.

How Does Riverside Compare to Other California Cities?

When I look at how the Riverside housing market is expected to perform in comparison to other regions in California, it’s evident that the Riverside housing market forecast is more optimistic than certain areas of the state. Let's look at a few of the major metro areas:

• Los Angeles: 2.3% increase by October 2025
• San Francisco: -2.3% decline by October 2025
• San Diego: 2.3% increase by October 2025
• Sacramento: 0% change by October 2025
• San Jose: 0.3% increase by October 2025
• Fresno: 1.8% increase by October 2025
• Bakersfield: 3.2% increase by October 2025
• Oxnard: 0.9% increase by October 2025

As you can see, the Riverside housing market looks relatively promising in comparison to other major California metro areas.

Will Home Prices Drop in Riverside? Will It Crash?

Based on Zillow's current forecast, it doesn't seem likely that Riverside will experience a major drop in home prices. It is predicted that home prices will slowly but steadily climb. While there is no guarantee, the forecast suggests that a housing crash, or a significant price drop, is not expected.

Possible Riverside Housing Market Forecast for 2026

Predicting so far into the future is tricky. However, it's likely that the Riverside housing market will continue to see steady growth, perhaps at a pace similar to that of 2025. However, I would advise people to keep an eye on the national and regional economy. Interest rates, inflation, and employment figures will be major factors that influence the real estate market.

I hope this overview of the Riverside housing market forecast has given you a better understanding of what might be in store. It's vital to remember that real estate market forecasts are just that – forecasts. If you're thinking about your real estate future in Riverside, doing your own research and consulting with a real estate agent is crucial for making informed decisions.