Riverside Housing Market Trends and Predictions for 2024 – Norada Real Estate Investments

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The Riverside housing market in 2024 has been a story of sustained growth, with strong buyer demand pushing prices upwards. While national trends hint at a potential slowdown, Riverside continues to buck the trend, offering a dynamic landscape for both buyers and sellers. Let’s delve deeper into the key trends shaping this market:

Riverside CA Housing Market Trends 2024

Solid Price Growth:

A consistent theme throughout 2024 has been the rise in home prices. As of May, the median sale price in Riverside reached $650,000, reflecting an 8.5% increase compared to last year. This growth is even more pronounced when considering price per square foot, which has jumped by 11.1% year-over-year. These figures solidify Riverside’s position as a market that favors sellers.

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Faster Sales and Lower Inventory:

The hot seller’s market is further evidenced by the speed at which homes are flying off the shelves. In May 2024, homes in Riverside typically sold after just 33 days on the market, a slight increase compared to last year but significantly faster nonetheless. This swift movement is likely due to the ongoing low inventory. While there have been some signs of a rise in available properties, with February seeing a 7% increase from January, the overall market remains competitive for buyers.

A Shift on the Horizon?

While the current trends suggest a strong seller’s market, some data points hint at a potential shift. For instance, the number of homes sold in Riverside has dipped slightly compared to last year. Additionally, Zillow data suggests that the median days to pending (the time a home goes under contract) is around 14 days, which is a touch longer than what some reports have indicated for earlier months in 2024. These subtle changes could signal a gradual cooling of the market, but it’s too early to say for certain.

Migration Patterns and Riverside’s Allure:

An interesting aspect of the Riverside market is its appeal to out-of-town buyers. Redfin data shows that while the majority of Riverside homebuyers intend to stay within the metropolitan area, a significant portion (21%) are looking to relocate from outside metros. San Francisco, New York, and Seattle top the list of cities where residents are searching for homes in Riverside, likely drawn by the area’s affordability compared to these coastal giants. This influx of buyers further fuels the competitive nature of the market.

Affordability Concerns:

With rising prices, affordability has become a growing concern for some potential buyers. The median sale price of $650,000 might seem out of reach for first-time homebuyers or those on a tighter budget. However, it’s important to remember that Riverside offers a diverse range of housing options, and there are still opportunities to find good value, particularly compared to pricier coastal California markets.

Riverside Housing Market Forecast 2024

The Riverside housing market in 2024 has been a rollercoaster ride for many. Fueled by strong buyer demand and a limited supply of homes, prices have soared throughout the year. But what does the rest of 2024 hold? Will the market continue its upward climb or is a correction on the horizon? Let’s delve into the data and expert insights to paint a picture of the Riverside housing market forecast for 2024.

Looking Back: A Seller’s Market in Full Force

As of May 2024, the median home value in Riverside sits at $643,521, reflecting a healthy 8.6% increase year-over-year [Source 1]. This growth is further amplified by the rapid sale times, with homes typically going pending in just 14 days. The high median sale-to-list ratio (over 1.0) indicates a strong seller’s market, with homes frequently fetching above asking price [Zillow].

A Pause or a Shift? Decoding the Forecast

While the current market leans heavily towards sellers, a recently released Metropolitan Statistical Area (MSA) forecast for Riverside paints a more nuanced picture for the remainder of 2024 and beyond. Here’s a breakdown of the forecast:

  • June 2024: A slight increase of 0.2% is predicted for home prices.
  • August 2024: The forecast anticipates a flat market, with prices remaining relatively unchanged.
  • May 2025: A potential market shift is hinted at with a projected decrease of 0.5% in home prices.

Interpreting the Forecast:

It’s important to remember that forecasts are just that – predictions based on current trends and historical data. The Riverside market has proven its resilience throughout 2024, defying national trends that suggest a potential slowdown. However, the projected pause in price growth and the possibility of a slight decline in 2025 suggest a potential cooling of the market.

Expert Opinions:

Local real estate experts offer valuable insights into the forecast. Some believe the market may stabilize rather than experience a significant decline. The influx of out-of-town buyers seeking affordability compared to coastal California markets is expected to continue to support demand. However, rising interest rates and potential economic uncertainties could dampen buyer enthusiasm, leading to a more balanced market.

Crash or Boom? Neither Likely

The Riverside housing market forecast for 2024 suggests a shift from the scorching seller’s market to a more balanced landscape. While a dramatic price crash is unlikely, a period of slower growth or even a slight dip in prices is a possibility. This presents a potential buying opportunity for those who have been priced out of the market earlier in the year.

Is Now a Good Time to Buy a House in Riverside?

Deciding whether or not to buy a house in Riverside in 2024 depends on your individual circumstances and priorities. Here’s a breakdown of the pros and cons to help you decide:

Pros of Buying Now:

  • Still a Seller’s Market: With high demand and low inventory, you’ll likely face competition, but there are still opportunities to find a home.
  • Potential for Appreciation: While the forecast suggests a cool down, long-term historical trends suggest home values generally appreciate over time.
  • Locking in an Interest Rate: Interest rates are still lower than in past years, which can translate to significant savings on your mortgage over time.

Cons of Buying Now:

  • High Prices: Home prices in Riverside are at an all-time high, which could strain your budget.
  • Potential Market Shift: The forecast suggests a possible cool down or even a slight price decrease in 2025. Waiting could lead to better deals.
  • Competition: The market still favors sellers, so be prepared to act quickly and potentially offer above asking price.

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