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Are you expecting property prices in Riverside to drop in 2025? Think again.
Despite various market changes, Riverside's real estate market is set to rise, driven by strong demand and limited housing supply.
In this blog post, we will explore why property prices in Riverside are expected to climb in 2025.
We rely on solid, reliable data and statistics from multiple credible sources, ensuring our analysis is thorough and accurate.
By the end of this post, we will present our own conclusions based on this comprehensive analysis. Enjoy the read!
How this content was produced 🔎📝
This article offers thoughtful insights and analysis based on reliable sources, but it should not be considered financial advice. We work hard to research, compile, and analyze data to give you a well-informed perspective. However, as you can guess, our analysis involves subjective choices, such as source selection and methods, and it cannot fully capture the market's complexity. Please, always do your own research, consult professionals, and make decisions based on your own judgment. Any financial risks or losses are your responsibility. Additionally, you should know that we have no affiliation with the sources mentioned, ensuring our analysis is completely impartial.
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
We created this infographic to show how property prices in Riverside compare to other big cities in California. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
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 "vacancy rate" of 5.0% shows a bustling and competitive market with most spaces filled
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
Our team designed this infographic to show how competitive the real estate market in Riverside is vs. other major cities in California. It shows the percentage of sales above the list price, a key indicator of market competition.
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
This infographic we have made will show you how market values have changed during the last decade in Riverside vs other major places in California. Here, the percentage increase or decrease in market value will help you see long-term trends.
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
Riverside's housing market is poised for a price increase in 2025, driven by several compelling factors.
First, the limited housing supply, with only 0.32 homes per person, combined with a steady influx of new residents, creates a high demand that naturally pushes prices up. The market's "very competitive" status, as noted by Redfin, further underscores this demand, especially for single-family homes in suburban areas.
Moreover, three major websites predict a rise in home prices, with Realtor forecasting an 8.80% increase. The low 5.0% vacancy rate and a livability score of 67 add to Riverside's appeal, making it a desirable place to live. Additionally, the fact that 50% of homes sell above their listing price and a historical appreciation rate of 8.2% per year over the past decade further indicate a robust market.
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- Yes, investing in real estate is a solid option in 2025 in Riverside