What is the Riverside County housing market like?
The Riverside County housing market is a seller’s market, with prices that are higher than the national average and homes selling faster than the average. Prices have dropped 1.8% since last year and the median sale price is currently $550K. On average, homes in the area sell after 55 days on the market, and in December there were 1,716 homes sold. The homeownership rate is higher than the national average and the cost of real estate is much more affordable than nearby cities like Orange and Los Angeles. Some of the more popular neighborhoods in Riverside County include Temecula and Eastvale, known for their great schools, parks, and entertainment. Overall, Riverside County is a great place to live, with plenty of opportunities for those looking to buy a home.
What factors influence the Riverside County housing market?
1. Population Growth
The population growth in Riverside County has been steadily increasing, with a current population of 308,206. This influx of new residents has created a high demand for housing, driving up home prices and creating a more competitive market. With fewer homes available, those that are for sale are selling quickly, often with bids above the asking price. This has caused the median home price to rise to $281, with a 1-year appreciation rate of 5.5%. As home prices continue to rise, the economic outlook for the area remains positive. The unemployment rate is currently 6.5%, with a 1-year job growth rate of 4.2% and a median household income of $76,564. The influx of new residents to the area has led to growth in the housing market, but it has also caused a rise in inflation and an increase in mortgage interest rates. This may lower the affordability of homes, leading to a cooling of the market in the future.
2. Housing Market Conditions
The housing market conditions in Riverside County are heavily influenced by a range of factors, including economic conditions, inflation, interest rates, availability of housing stock, consumer sentiment, and the local job market. Economic conditions such as high inflationary pressures and rising mortgage rates can reduce home buyers’ purchasing power and reduce housing affordability in the area. In addition, an increasing inventory of housing units can lead to longer days on the market and also put downward pressure on home prices. Consumer sentiment plays a role in the housing market conditions in Riverside County, with data from the California Association of Realtors showing that fewer people feel it is a good time to buy a home than to sell a home in the area. Lastly, the local job market can also influence housing market conditions in Riverside County, as it affects the ability of people to buy a home or rent a property in the area.
3. Interest Rates
The rising interest rates are having a significant impact on the Riverside County housing market. With the Federal Reserve expected to raise interest rates in the near future, borrowing costs will remain elevated, reducing homebuyers’ purchasing power and depressing housing affordability in 2023. This will cause both home prices and sales volumes to moderate further, resulting in a 7.2% drop in home sales and an 8.8% reduction in the median home price. The continued high inflationary pressures will also keep the average for 30-year, fixed mortgage interest rates elevated at 6.6%. Investment property purchases may remain flat as investors are well-positioned to recover their costs through well-selected properties. As a result, the market will shift, with sellers adjusting their expectations and buyers enjoying more favorable market conditions.
4. Availability of Housing
The availability of housing in Riverside County is determined by a variety of factors, including the age of homes, type of housing, size of housing, and the local housing market. The proportion of homes and apartments built within a certain time period, the predominate forms of housing, and the predominate size of homes all contribute to the availability of housing in the area. Additionally, the local housing market can also influence availability, as the sentiment of local buyers and sellers can dictate the availability of a given housing market.
In Riverside County, the primary forms of housing are single-family homes, townhomes, small apartment buildings, apartment complexes, mobile homes, and other housing types. Single-family homes make up 65.1% of the housing market, townhomes make up 4.0%, small apartment buildings make up 5.9%, apartment complexes make up 22.4%, mobile homes make up 2.5%, and other housing types make up 0.1%. The predominate size of homes in the county is three-bedroom homes.
The local housing market also plays a significant role in the availability of housing in Riverside County. Consumer sentiment regarding the housing market can determine whether or not buyers and sellers are willing to take advantage of current market conditions. For example, according to C.A.R.’s monthly Consumer Housing Sentiment Index, in April, 59% of consumers said it was a good time to sell, up from 55% the previous month. However, only about 25% felt it was a good time to buy a home, unchanged from the previous month. The end of the eviction moratorium could throw a large number of homes onto the market as owners can’t meet their mortgage obligations, while the state’s unemployment rate of 7.9% in May remains one of the highest unemployment rates in the nation. All of these factors can influence the availability of housing in Riverside County.
Riverside County, California is an important area for the economy. Factors that influence its economic health include population growth, the housing market, and access to resources.
Population growth in Riverside County has been steadily increasing, which has been beneficial to the local economy. The population growth stimulates demand for labor and housing, making it attractive to businesses. This growth has also provided more opportunities for local businesses to thrive. Additionally, population growth has increased the spending power of residents, leading to greater economic activity.
The housing market in Riverside County is also an important factor for the economy. Home prices have been rising steadily in recent years due to low interest rates and an influx of people moving to the region. This has been beneficial for homeowners as well as businesses as it gives more people access to buying homes and increases spending power. The real estate market also affects the availability of affordable housing, which is essential for the overall economic health of the region.
Access to resources is also essential in Riverside County. With access to resources such as water, transportation, and energy, businesses can operate efficiently. This creates jobs and boosts the local economy. Additionally, access to resources allows businesses to reduce their costs, making them more competitive.
Overall, the economy of Riverside County is influenced by many factors, including population growth, the housing market, and access to resources. Each factor plays an important role in the economic health of the region. By understanding these factors, businesses and governments can make decisions that benefit the local economy.
6. Natural Disasters
Natural disasters that affect the Riverside County housing market include floods, droughts, fires, heat, and storms. Floods are a significant risk, with approximately 18% of homes currently at risk and an increase of 164,266 homes (18 %) at risk within 30 years. Floods have caused an average of $21 in property damage this year, with 3% of homes required to have flood insurance with premiums ranging from $160 – $3,259 per month. Drought risk is also high, with the current water stress rate at 73 % and projected to increase to 79 % by 2050. Fire risk is moderate, with about 0% of land near the county burning in a year and up to 295 sq. miles burned in a year projected in 2050. Heat risk is moderate, with the current average of 8 hot days per year projected to increase significantly to 34 hot days per year by 2050. Storm risk is low, with an average of 9 two-day storms per year and a projected 1″ of precipitation per storm in 2050.
7. Housing Bubble
A housing bubble is an economic phenomenon in which housing prices rise rapidly, often beyond what is justified by the underlying fundamentals of the housing market. This can lead to a situation in which prices become far higher than what buyers are willing to pay, leading to a sudden collapse of the market.
The Riverside County housing market is currently experiencing the effects of a housing bubble. Demand for housing has risen sharply in 2021, leading to an increase in prices. This has been combined with limited housing inventory, creating a seller’s market, with homes selling faster and for more money than ever before. Factors such as low mortgage rates, the pandemic-related departure of many people from expensive coastal cities, and an overvaluation of homes compared to historical numbers have all contributed to the bubble in Riverside County. As a result, buyers are paying an average of 25.2% more for their homes than what is expected based on historical data. This premium is the 48th highest in the US. If the bubble continues to grow, it could lead to a sudden collapse of the housing market in Riverside County.
8. Bank Repossessions
Bank repossessions can have a significant effect on the Riverside County housing market. As banks take possession of properties, they add to the inventory of homes available on the market, thereby increasing the supply. This can cause a decrease in home prices as buyers have more options and can be pickier when making offers. Additionally, higher inventory can lead to longer days on market and longer timeframes for a sale to be finalized. Furthermore, as banks take possession of homes, they often must make repairs in order to make them saleable, which can cause a decrease in home values as well. This can further contribute to a decrease in home prices in the Riverside County housing market as buyers may not be willing to pay full market value for a home that requires significant repairs.
9. Home Equity Loans
The Riverside County housing market has been heavily impacted by home equity loans. As more home buyers become willing to take on higher loan amounts, the demand for housing has risen sharply. This has led to a dramatic increase in home prices, with the average home in the area now selling for about $529,415, substantially more than the average predicted price of $422,957. The high demand for housing, coupled with limited inventory, has created a sellers market in which homes are selling faster and for more money than ever before. The surge in loan amounts is also causing some areas to become overvalued when compared to historical data – one example being Riverside, where home buyers are paying a 25.2% premium on the average house. Home equity loans are therefore having a major effect on the Riverside County housing market, causing prices to rise and creating an environment wherein some homes are becoming overvalued.
10. Rental Market
What factors influence the Riverside County rental market? [Expanded list]
The Riverside County rental market is strongly influenced by a variety of factors, including the average market rent, homeownership rate, prices and sales trends, availability of listings, and other economic indicators. Average market rent is an important factor in determining rental rates, as it reveals the average monthly rent paid for market rate apartments and rental homes in the city. The homeownership rate is also an important factor, as it reflects the percentage of housing units that are occupied by the property owner versus occupied by a tenant. Prices and sales trends from the California Association of Realtors (CAR) also provide insight into the rental market, as CAR produces forecasts about pending sales, home prices, and other relevant information. The availability of listings, as well as rental yields, property management software, and other economic indicators also impact rental prices in Riverside County.
How to use this report and make sense of the numbers?
Step 1: Research Riverside County housing market trends
In December 2022, the real estate market in Riverside County had 7,509 homes for sale, with a median list price of $584,371. This number was 5.1% lower than the month before. The average time on the market was 48 days, and prices of 1 bedroom properties increased by 32.7%. Prices of 2 bedrooms properties increased by 17.1%, and 3 bedrooms properties prices increased by 12.4%. Prices for 4 and 5 bedrooms properties went up by 9.2% and 9.4%, respectively. As the year progressed, the housing market in Riverside County continued to cool rapidly as the interest rate hike in 2022 limited buyer options, leading to a downward pressure on home prices. This continued into 2023, with a full recovery predicted to begin in 2027. However, with the return of speculators in 2025, real estate sales volume began to pick up and the market began to stabilize. As of November 8, 2022, Riverside County remains in a Seller’s Market, with prices tending to be higher and homes selling faster.
Step 2: Figure out your budget and decide on a home price point
Step 1: Calculate Your Budget
Before you start looking at homes, you need to know how much you can afford. Look at your income, debts, and expenses to determine what you can realistically spend. The goal is to spend no more than 28% of your gross monthly income on housing.
Step 2: Select a Price Range
Once you have a budget in mind, you can start searching for homes in that price range. Look at the Home Price Distribution section of the report to see what the median listing home price is, and use that as a starting point.
Step 3: Narrow Your Search
Based on the data in the report, you can further narrow your search by considering other factors. For example, if you’re looking for an affordable 2-bedroom home, you can look for homes in the Quick Turnover section.
Step 4: Find the Most Overvalued Markets
If you’re looking for a good deal, you can look for the most overvalued markets. The report identifies Riverside, California, as one of the most overpriced housing markets in the country, where the average home is selling for 25.2% more than its expected price.
Step 5: Make an Offer
Once you’ve found the right home at the right price, you can make an offer. Be sure to factor in closing costs, inspections, and other expenses before making a final decision.
Step 3: Research the types of homes available in your area
Step 1: Visit your local real estate website or search engine to view available homes in your area. You can narrow your search by selecting the home type, size, and price range you are interested in.
Step 2: Check local real estate listings on websites such as Zillow, Realtor.com, or Trulia to get a more detailed look at the types of homes available in your area.
Step 3: Research the housing market in your area by visiting websites that provide comprehensive data on the types of homes, age of homes, and size of homes in the area.
Step 4: Review the housing market data provided by websites such as NeighborhoodScout which provide detailed information on the proportions of homes built within certain time periods, the predominate forms of housing, and the sizes of homes.
Step 5: Check for any open houses in the area to get a better understanding of the types of homes available and how they differ in terms of size, features, and amenities.
Step 6: Talk to local real estate agents or homebuilders to get a better understanding of the local housing market and the types of homes available in your area.
Step 4: Get information on mortgage rates and other factors that affect the cost of homes
Step 1: Review the C.A.R. California Housing Market Forecast report, which provides an overview of the housing market and predictions of home sales and prices in 2023.
Step 2: Analyze the information provided regarding the Fed rate hikes and mortgage applications. This can provide insight into the impact of interest rates on the cost of homes.
Step 3: Take a look at the rental market, which may provide an alternate option for people who are unable to afford a home. Analyze the median home listing prices from the past five years to get an understanding of the current pricing trends.
Step 4: Investigate the S&P CoreLogic Case-Shiller Indices, which provide an overview of the home prices in the US. This can provide insight into the factors driving the demand for homes in certain areas.
Step 5: Consider factors such as the impact of the COVID-19 pandemic, low mortgage rates, and the movement of people from expensive coastal cities to inland cities, which may also be influencing the cost of homes.
Step 5: Find out how long it will take to find and purchase a home
Based on the market reports, it will likely take around 25-90 days to find and purchase a home in Riverside County. Factors like the availability of homes for sale and financing costs will affect the length of time it takes to purchase a home. To make the process easier, it is advisable to work with an experienced real estate agent to help you navigate the market. Additionally, using online tools like Rocket Mortgage can help you find and compare mortgage solution quickly.
Step 6: Get acquainted with local restaurants and other attractions
Step 1: Use the Yelp Top 100 Places to Eat list to get an idea of the best restaurants in Riverside County. You can read reviews, see menus, and find contact information for each restaurant.
Step 2: Check out the Kids Score to get an idea of how family-friendly the restaurants in Riverside County are.
Step 3: Look for grocery stores and cafes that are in Riverside County. You can find information about the number and locations of stores like Walmart, Sprouts, Ralphs, and Trader Joe’s.
Step 4: Check out the report on Riverside County restaurants that have been shut down by health inspectors. This can help you make sure that you are choosing a safe, healthy restaurant.
Step 5: Learn about the walkability, bikeability, and transit-friendliness of Riverside County. This will help you find the best way to get to the restaurants and other attractions.
Step 7: Check out yield, sales and price predictions for different neighborhoods before deciding where to live
Yield, sales and price predictions can help you make sense of the numbers in this report by giving you a better understanding of the economic trends in the current housing market. Yield predictions can show you the expected return on your investment, while sales and price predictions can help you determine whether to buy or rent.
1. Look up the yield predictions for the market in which you’re interested. Yield predictions tell you the expected return on your investment. This can help you determine whether an area is a good investment or not.
2. Look up the sales predictions for the market in which you’re interested. Sales predictions tell you the expected number of sales for a particular area. This can help you decide whether an area is likely to see an increase in activity or not.
3. Look up the price predictions for the market in which you’re interested. Price predictions tell you the expected trends in prices for a particular area. This can help you decide whether an area is likely to see an increase or decrease in prices.
Let’s say you are looking at an area in California. You would look up yield predictions for the area, sales predictions for the area, and price predictions for the area. The yield predictions would tell you the expected return on your investment. The sales predictions would tell you whether the market is likely to see an increase in activity or not. The price predictions would tell you whether the market is likely to see an increase or decrease in prices. All of this information can help you make an informed decision about whether an area is a good investment or not.
Step 8: Take note of the county’s historic sales data for the area you are considering renting or buying in.
Historic sales data can help you understand rental or property purchase numbers in a particular county by providing important context and trends around the local market. Step-by-step instructions and an example below will explain how to use historic sales data:
Step 1: Gather data on property sales in the particular county by researching local real estate websites, speaking with local real estate agents, and utilizing data from organizations like CAR or NAR.
Step 2: Evaluate the data from Step 1 to gain an understanding of the current trends in the particular county. This should include information on average home prices, sale prices, and rental prices for the area.
Step 3: Analyze the data from Step 2 to determine if the trend is positive or negative. Pay attention to any sudden shifts in the market, as this could indicate an important trend.
Step 4: Estimate future rental or purchase prices in the county based on the current trends and analysis from Steps 1-3.
For example: In Riverside County, CAR’s forecast report shows that in the last 5 years, the median home listing price has rocketed. Single-family homes in particular are seeing a surge in demand. From this data, you can estimate that future rental or purchase prices in the county will be higher than usual.
Step 9: Do some research on the expected activity levels in 2021, 2022 or 2023 for the area you are considering.
As the nation continues to grapple with the effects of coronavirus, the future of housing activity in Riverside County is uncertain. Though there are still many unknowns about what 2021 and beyond will bring for California’s economy, experts agree that it could be a good time to buy or sell a home in Riverside County.
According to the California Association of Realtors, there has been an increase in buyer demand across the state this year compared to 2019. This uptick has kept prices steady despite being burdened by high unemployment rates and other economic strains posed by COVID-19.
Looking ahead, it’s expected that 2021 will see a continued increase in demand for existing single family homes (SFH) although at lower rates than before the pandemic due to limited available inventory. However, with new building construction coming back online, it’s possible that buyers may have more options towards the end of 2021 and into 2022.
In terms of long term projections, economists anticipate a strong housing market into 2023; fueled largely by low mortgage interest rates and an improved labor market from increased vaccinations. Changes in government policies have also contributed positively to consumer confidence which should help keep home values steady throughout next year and beyond.
For those looking to buy or sell a home in Riverside County this year or next, know that you’re making an investment during an uncertain but potentially rewarding time. As always, consider your financial situation carefully before making any major purchases or decisions—and don’t forget to consult an expert along the way!
Bonus Step 10 : Investigate whether buying a house in Riverside County is a good investment idea.
1. Start by researching the median home prices in Riverside County. Compare the current prices to those of the past three years to get an idea of whether the housing market is in a bullish or bearish cycle.
2. Look at recent offers and recently sold homes in Riverside County to get a better idea of how much properties are going for in the area.
3. Explore the walkability, bikeability, and transit-friendliness of Riverside County. This will help you get an idea of the local environment, and how easy it will be to get around once you buy a home.
4. Use property investment reports for insight into the market environment and the future trend of Riverside property prices.
5. Speak with local real estate agents about the current market situation and their predictions for the future.
6. Finally, talk to other real estate investors and professionals about their experience in the area. This will help you get a better understanding of what it’s like to invest in Riverside.
What is the average price of homes in Riverside County?
The average price of homes in Riverside County is currently $549,995, which is down 1.8% compared to last year. The median sale price of homes in Riverside was $630K in Q3, an increase of 13% year-over-year. The median price per square foot in Q3 was $368, a 13% increase year-over-year, while the median sale price in Riverside County was $580K. Additionally, 54.4% of homes in Riverside County sold below asking price last month.
What is the median rent price in Riverside County?
The median rent price in Riverside County in December 2022 was $584,371, an increase of 11.4% since the previous year. This increase is indicative of the tight real estate market in Riverside County, with the average time on the market at 48 days and the median list price at $317/sqft.
What is the housing market forecast for Riverside County?
The housing market forecast for Riverside County is that home prices are predicted to continue to decline in the near future due to rising interest rates, high inflation, and the current wait-and-see approach of buyers. The multiple listing service (MLS) inventory has risen since the historic low at the end of 2021, with an average of 18% higher than a year earlier as of July 2022. However, with prices beginning to plunge as we head into 2023, it is expected that inventory will continue to increase in the coming years, making it a buyer’s market. As of December 2022, median home prices in Riverside County were down 1.8% compared to last year, selling for a median price of $550K, and on average homes in Riverside County were taking 55 days to sell compared to 32 days last year.
What is the inventory of single-family homes in Riverside County?
The inventory of single-family homes in Riverside County, as of November 2022, is 5,083. This represents a 5.4% decrease from the previous three months. The median housing price of existing single-family homes is currently $560,000. Luxury homes in Palm Springs have an average sale price of $1,003,315, with an average days on market of 28 days. Overall, there are 7,509 homes for sale in Riverside County, with the median list price at $584,371.
What is the rental market like in Riverside County?
The rental market in Riverside County is growing as the population increases and the cost of real estate remains more affordable compared to neighboring counties. According to the latest market report from CAR, rent prices in Riverside County have increased on average by 3.6% year-over-year and currently sit at an average of $1,766 per month. The vacancy rate in Riverside County averages 1.3%, making it a fairly tight market with higher demand. Renters may find the best deals on apartments and houses located in the most popular neighborhoods, such as Temecula, Eastvale, Mission Grove and Orangecrest.
How has the pandemic affected the housing market in Riverside County?
The housing market in Riverside County has been drastically impacted by the pandemic, with sales dropping 45% in November 2020 compared to the same month a year earlier. Prices have also been affected, with the median dropping by 2% in a month and 2% higher in a year and being 9% off the record high of May 2022. The 30-year mortgage rate has also increased from 3.1% to 6.8%, drastically increasing the estimated payment per month for the median home in Riverside County from $1,817 to $2,836, a 56% jump. Furthermore, the sales of single-family homes have decreased 54%, while condo sales have decreased 58%. Prices of condos have also seen a 5% increase compared to the same period a year earlier. All these factors, combined with economic skittishness and inflation, have caused the housing market in Riverside County to slow down and become increasingly unaffordable.
What are the appreciation rates for homes in Riverside County?
The appreciation rates for homes in Riverside County over the last 10 years have been incredibly strong. Riverside real estate has appreciated 187.50%, with an average annual home appreciation rate of 11.14%. This puts Riverside in the top 10% nationally for real estate appreciation. In the latest twelve months, Riverside appreciation rates continue to be some of the highest in America, at 17.33%, which is higher than appreciation rates in 79.02% of the cities and towns in the nation. At the time of this report, the average sale price of a home in Riverside County was $550K, down 1.8% since last year, with an average sale price per square foot of $299, up 2.7% since last year. The homeowner turnover rate in Riverside County was 8.3%, and the renter turnover rate was 11.7%.
What are the housing stats for Riverside County?
The housing stats for Riverside County in December 2022 show a median sale price of $549,995, a decrease of 1.8% from the previous year. There were 1,716 homes sold that month and the median days on the market was 55, compared to 32 days in the previous year. The number of homes for sale in Riverside County is 7,509, a decrease of 5.1% from the previous month.
How has the homeowner turnover rate changed in Riverside County?
The homeowner turnover rate in Riverside County has declined steadily since 2009. In 2021, the homeowner turnover rate was 8.3%, down from 8.7% in 2020 and 8.9% in 2019. The renter turnover rate has also declined dramatically, from 17.9% in 2020 to 11.7% in 2021. These decreases in turnover are due to residents staying in place instead of moving due to slow job growth, stagnant wages, and fears of carrying mortgage debt. The homeownership rate in Riverside County is also lower than it was before the recession, with the rate being 62.4% in Q3 2022, down from nearly 69% earlier in 2022.
What effect has the minimum wage job increase had on the Riverside County housing market?
The increase in minimum wage jobs in Riverside County has had a positive effect on the housing market. The number of individuals employed in Riverside County surpassed its December 2007 peak in 2014 and has seen even greater gains since the beginning of 2020. This has resulted in an increase in wages, which has helped to support the housing market. With more people able to afford housing, home sales in Riverside and San Bernardino counties increased in November, despite the economic skittishness. Prices have increased as well, albeit at a slower rate, and buyers have been able to afford these prices thanks to the higher wages. As a result of this increase in wages and the related increase in housing prices, the payments on a typical house have also increased.
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