Are Inland Empire Home Prices Finally Cooling Off?
Summer 2025 Market Pulse for Buyers & Sellers
The Snapshot: Where Prices Stand Right Now
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Region‑wide (Riverside + San Bernardino Counties)
Average sale price: $610,000 (May 2025) – a ‑0.3 % month‑over‑month dip, but still +1.9 % vs. May 2024. -
Riverside County
Median sold price: $613,556, +3 % year‑over‑year. -
San Bernardino County
Median sale price: $540,350, +3.9 % year‑over‑year. -
Rancho Cucamonga spotlight
Median price: $835,000, essentially flat year‑over‑year, with homes moving in ≈29 days.
Are Prices Really Coming Down?
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Month‑to‑month softness, but no sustained slide yet. After an 18‑month stretch of rapid appreciation, values have plateaued and even ticked down slightly since April. The modest MoM decline shows the market is cooling, not crashing.
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Inventory is inching up. Unsold inventory rose to 4.5 months in May – the highest level in over a year – giving buyers a bit more breathing room.
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Interest‑rate pressure persists. Thirty‑year fixed rates hover near 6.8 %–6.9 %, the lowest in seven weeks but still double pre‑2022 levels, keeping some buyers on the sidelines. apnews.com
What’s Behind the Plateau?
| Demand‑Side Factors | Supply‑Side Factors |
|---|---|
| • Higher borrowing costs trim budgets. | • A slow trickle of new listings limits any major price correction. |
| • Affordability gap with coastal counties still drives migration east, providing a demand floor. | • Move‑up sellers stay put to protect their 3 % mortgages, constraining resale inventory. |
| • Wage growth and near‑record inland job creation support household formation. | • New‑home builders are offering rate buydowns instead of deep price cuts, keeping comps firm. |
My Outlook for the Rest of 2025
| Quarter | Price Trend | Key Driver |
|---|---|---|
| Q3 | Sideways (‑1 % to +1 %) | Seasonal lull & rate volatility |
| Q4 | Mild uptick (+2 % to +4 %) | Year‑end rate relief + pent‑up demand |
Barring a sharp economic downturn, any pull‑back is likely to remain single‑digit and uneven across neighborhoods. Entry‑level homes near job centers continue to attract multiple offers, while luxury and far‑commute properties see the most negotiation room.
Advice for Today’s Buyers
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Leverage the inventory bump. You now have more than 30 days (vs. 28 days last year) to shop and negotiate.
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Get rate quotes every Friday. Mortgage rates have moved within a 15‑basis‑point band since mid‑April; timing can shave off tens of thousands in interest.
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Consider new‑construction incentives. Builders are buying rates down into the mid‑5 % range instead of slashing list prices outright.
Advice for Sellers
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Price to the last 30 days, not last year. Over‑pricing by even 2 % can double your days on market in the current climate.
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Upgrade high‑impact items. Fresh paint, drought‑friendly landscaping, and a pre‑inspection report help you stand out as buyers gain options.
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Be flexible on concessions. Closing‑cost credits or a 2‑1 buydown often cost less than a straight price cut and keep your headline sale price higher.
Bottom Line
Home values across the Inland Empire have flattened, not fallen off a cliff. The slight month‑over‑month cooling signals a transition toward a more balanced market rather than a buyer‑favorable fire sale. Whether you’re looking to move up, scale down, or make your first purchase, smart strategy – not market timing – will be your biggest advantage.
Ready to make your move?
Renee Fyfe | Broker Associate – Homequest Real Estate | CA DRE # 01999798
📞 (909) 215-2558 | ✉ Reneefyferealtor.com
Let’s navigate the Inland Empire market together and put today’s data to work for your goals.