**Riverside, California Real Estate Market 2025:  What You Need to Know**

In 2025, the Riverside housing market is showing signs of slowing after years of sharp growth.  Once considered one of the hottest real estate markets in Southern California, Riverside is now experiencing a more balanced environment which provides great opportunities for both buyers and sellers.

• Current Market Snapshot
  • Median Sale Price: Around $645,000, slightly down (-2.3% year over year (YoY).
  • Days on Market: Homes are taking an average of 50 days to sell, compared to 31 days last year.
  • Inventory: New listings are on the rise across Riverside County, up nearly 47% compared to 2024.
  • Competitiveness: Riverside remains "somewhat competitive"—homes often receive two offers but fewer bidding wars than in past years.
• Market Dynamics
  • The slowdown in price appreciation reflects a shift toward stability. Buyers now have more time and options, with listings lasting longer on the market. Sellers, meanwhile, are still benefiting from relatively strong home values, but proper pricing and presentation are more important than ever.
  • Mortgage rates remain a key influence. While they are still elevated compared to pre-pandemic lows, they’ve forced a more measured market dynamic, preventing runaway bidding and giving buyers negotiating leverage.
  • Regional Perspective Across Riverside County, median sale prices are around $605,000 (-1.6% YoY). The Inland Empire as a whole is seeing higher inventory levels and longer selling times, signaling a regional cooling trend. However, Riverside continues to attract buyers due to its relative affordability compared to Los Angeles, Orange County, and San Diego.
  • Affordability & Risks Affordability remains a challenge: Riverside is ranked among the most overvalued housing markets in the U.S., with mortgage costs eating up nearly 68% of household income on average. This high mortgage-to-income ratio underscores why sales activity has slowed.
  • Environmental risks are also shaping the market. About 70% of Riverside homes are considered high-risk for wildfires, and rising insurance premiums are a growing concern for homeowners and buyers alike.
• Looking Ahead Forecasts for 2025 suggest, a modest growth of 2–4% in home prices is projected across Southern California. While this is far slower than the double-digit spikes seen in recent years, it represents a more sustainable trajectory. For buyers, the current environment provides more breathing room to explore options and negotiate.  For sellers, the market still offers strong pricing, but gone are the days of effortless multiple-offer bidding wars.

Final Thoughts

The Riverside real estate market in 2025 is best described as balanced. Buyers are gaining ground, while sellers continue to benefit from historically strong values. Affordability and environmental risks remain hurdles, but Riverside’s location, amenities, and relative value keep it a sought-after market within Southern California.  Whether you’re buying, selling, or investing, navigating Riverside’s housing market this year requires a thoughtful strategy, realistic expectations, and a keen eye on affordability trends.