Here is why property prices are going to climb in 2025 in Riverside

Our industry specialist has reviewed and approved the final article. Also, some of the data presented here have been integrated into the Riverside real estate spreadsheet template.

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Expecting a decrease in Riverside's prices in 2025? Think again.

Even with changing patterns, Riverside's market stays strong, with high demand and not enough supply pushing prices up.

Let's explore why prices in this area are set to rise in 2025.

This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.

1) In Riverside, there are only about 0.32 homes for each person, which is quite limited

Signal strength: strong

In Riverside, the fact that there is around 0.32 home per inhabitant indicates a limited housing supply. This ratio suggests that the number of homes available is relatively low compared to the population size, which can lead to increased demand.

One specific factor that locals know is that Riverside has been experiencing a steady influx of new residents due to its proximity to major job markets like Los Angeles. This growing population, combined with the limited housing supply, puts upward pressure on housing prices as more people compete for fewer homes.

Additionally, Riverside's appeal lies in its affordable cost of living compared to nearby cities, attracting even more potential buyers. As demand continues to rise, the scarcity of available homes is likely to drive prices up further.

If the ratio were to increase significantly, say to 0.5 home per inhabitant, it might indicate a more balanced market, potentially stabilizing prices.

Source: USCensus

2) Redfin considers the Riverside real estate market to be "very competitive."

Signal strength: strong

The fact that Redfin ranks the Riverside real estate market as "very competitive" is a strong indicator that housing prices are likely to rise in 2025. When a market is labeled as "very competitive," it means that there is a high demand for properties, often leading to multiple offers and bidding wars, which naturally drive prices up.

In Riverside, the most competitive properties are single-family homes, particularly those located in suburban areas. These homes are highly sought after because they offer more space and privacy compared to urban apartments, making them ideal for families and individuals looking for a quieter lifestyle.

Additionally, Riverside's proximity to major cities like Los Angeles makes it an attractive location for those who want affordable housing options while still being close to urban amenities. This demand for suburban single-family homes in Riverside is a key factor in the market's "very competitive" status.

If the market were to become "less competitive," with fewer buyers and more available properties, it could signal a potential stabilization or decrease in housing prices.

Source: Redfin

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3) Three major websites confidently predict that home prices in Riverside will rise in 2025

Signal strength: strong

There are three major websites forecasting a positive growth for home prices in Riverside in 2025, which is a promising signal for potential investors.

Among these forecasts, Realtor is the most optimistic with an expected increase of 8.80%, followed by Redfin's forecast of a 4% rise, and finally, Zillow predicts a 2.90% growth. The significant gap between Realtor's and Zillow's predictions highlights the variability in these forecasts.

While these projections are encouraging, it's important to remember that forecasts should be taken with caution as they are based on assumptions and models that may not fully capture future market dynamics. Therefore, we will also rely on strong, reliable, and actual data to make a more informed and professional judgment about the market.

If these forecasts were to predict a negative growth or a decline in home prices, it would signal a potential downturn in the market.

Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts

4) Riverside's is just 5.0%, showing it's a bustling and competitive market

Signal strength: moderate

The vacancy rate in Riverside is currently at 5.0%, which is considered very low. This low vacancy rate indicates that the housing market is highly occupied and competitive, meaning there is strong demand for housing in the area.

When demand is high and supply is limited, it often leads to increased housing prices as more people compete for fewer available homes. In Riverside, properties that are easily rented are typically well-maintained single-family homes located in desirable neighborhoods such as Orangecrest.

These homes are attractive to renters due to their proximity to good schools and amenities, making them a popular choice. If the vacancy rate were to rise significantly, say to above 10%, it could indicate a shift towards a less competitive market.

Sources: NeighborhoodScout, DataUSA, USCensus

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5) Riverside has a "Livability" score of 67, indicating it's a pleasant place to live

Signal strength: moderate

The fact that Riverside has a livability score of 67 is a positive indicator for potential real estate investors. This score suggests that the area offers a good quality of life, which is attractive to homebuyers and can drive up demand for housing.

One reason the livability score is considered good is because of Riverside's proximity to major employment centers, such as Los Angeles and San Diego. This makes it a convenient location for commuters, increasing its appeal. Additionally, Riverside boasts a rich cultural scene with numerous museums and art galleries, which enhances the lifestyle of its residents.

Another factor contributing to the livability score is the abundance of outdoor recreational activities available, including hiking trails and parks. These amenities attract families and individuals who value an active lifestyle, further boosting the area's desirability. As demand increases, it's reasonable to expect that housing prices will follow suit.

However, if the livability score were to drop below 50, indicating significant issues with quality of life, it might suggest a different trend for housing prices.

Source: AreaVibes

6) In Riverside, about half of the homes sell for more than their listing price

Signal strength: moderate

In Riverside, around 50% of sales close at a price higher than the listing price, which is a strong indicator of demand. When buyers are willing to pay more than the asking price, it suggests that competition among buyers is intense.

This competition often leads to increased housing prices as buyers try to outbid each other. If this trend continues, it is likely that housing prices will rise in the future.

Investors should consider this as a signal that the market is heating up and may offer profitable opportunities. However, if the percentage of sales closing above the listing price drops to below 20%, it might indicate a cooling market.

Source: Zillow

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7) In Riverside, home prices have consistently risen by an average of 8.2% each year over the past decade

Signal strength: moderate

The fact that home prices in Riverside have appreciated at an average rate of 8.2% over the last decade is a noteworthy signal for potential investors. This consistent growth suggests that there has been a steady demand and increasing value in the housing market, which can often indicate favorable conditions for future price increases.

While this historical data is promising, it's important to remember that past performance doesn't guarantee future results. However, such a positive trend can still be a valuable indicator when considering investment opportunities in the area.

Investors should also consider other factors, such as economic conditions and local developments, which can influence future housing prices. By examining these elements alongside the historical appreciation rate, one can make a more informed decision.

If the appreciation rate were to drop significantly below the historical average, it might suggest a shift in market dynamics that could affect future price trends.

Source: NeighborhoodScout

So, are prices going to climb in Riverside in 2025? Absolutely