Riverside, CA Housing Market Report

The Riverside real estate market is currently transitioning into a more balanced environment, showing signs of stabilization after a period of modest correction. As of December 2025, the median home value stands at $635,073, representing a 2.59% decrease year-over-year. While the market historically favored sellers, the current landscape is shifting toward buyers due to a significant increase in active inventory, which has risen by 5.36% to 14,384 units. With homes spending an average of 71 days on the market—an 11-day increase from last year—buyers now have more leverage and time to conduct due diligence without the pressure of immediate bidding wars.

Price trends over the last six months indicate a U-shaped recovery. After hitting a low of $630,874 in October 2025, values have climbed steadily through November and December. This suggests that the market may have found its floor and is beginning to regain momentum. The sale-to-list ratio remains at a perfect 1, indicating that while buyers have more options, sellers are still successfully pricing their homes in alignment with current market appraisals. This equilibrium is a positive sign for market health, preventing the drastic volatility seen in previous cycles.

Looking ahead, the rental market continues to show strength with a median rent of $2,385, up 3.36% year-over-year. This divergence between softening purchase prices and rising rents makes Riverside an increasingly attractive prospect for long-term investors and first-time buyers looking to lock in housing costs. Sellers should be prepared for longer wait times and must ensure their properties are in peak condition to compete with the growing inventory. Buyers, conversely, should take advantage of the increased selection and the slight year-over-year price dip before the recent upward monthly trend potentially erases those gains in early 2026.