How the Stock Market Impacts Real Estate in the Inland Empire (Especially Right Now)
If you’re buying, selling, or investing in real estate in the Inland Empire, you’re probably focused on local factors—like neighborhood growth, interest rates, or how many homes are available. But one factor that often flies under the radar? The stock market.
While Wall Street might feel a world away from Riverside, San Bernardino, or Murrieta, what happens in the financial markets can absolutely impact real estate right here in the Inland Empire.
And in 2025, that connection is more relevant than ever.
1. Stock Market Confidence Drives Buyer Behavior
After a rollercoaster 2023 and a recovery in 2024, many investors entered 2025 with cautious optimism. The S&P and Nasdaq have shown signs of strength, but global uncertainty and inflation concerns still linger.
That kind of environment plays out in real estate. When people feel good about their financial position, they tend to move forward with big decisions like buying a home. Right now in the Inland Empire, we’re seeing a mix: some buyers feel ready to act, especially with rates stabilizing, while others are still waiting for the “perfect moment.”
In markets like Eastvale and Riverside, properties priced right are still moving—especially if they’re turnkey and in desirable school districts.
2. Interest Rates: Still the Wild Card
Mortgage rates were the big headline in 2023, climbing higher than we’ve seen in years. Now, in early 2025, rates have settled somewhat—floating between 6% and 6.5%, depending on loan type and credit. That’s still higher than the ultra-low rates of 2020-21, but more palatable for buyers who were priced out during last year’s peak.
The stock market plays into this. If inflation stays in check and the market remains steady, the Fed may keep rates flat or even lower them by mid-2025. If so, we could see a surge in buying activity in places like Rancho Cucamonga and Menifee.
3. Investors Are Watching Closely—and Shifting Strategies
With stocks unpredictable, many investors are once again looking to real estate. And the Inland Empire remains attractive: it’s more affordable than coastal counties and still offers strong rental demand.
In 2025, we’re seeing more interest in multi-family properties, ADUs, and even short-term rentals in wine country markets like Temecula. As stock portfolios ride the market waves, real estate offers a sense of stability and control many investors crave right now.
4. Equity Wealth = Down Payment Power
Let’s be real—many Inland Empire buyers, especially move-up buyers, use stock portfolios or 401(k)s to fund down payments. When the market is up, they’re more confident about pulling funds. When it’s down or volatile, people tend to pause.
Right now, with the market recovering but still unpredictable, some buyers are choosing to buy with smaller down payments, use seller credits, or negotiate rate buydowns rather than cashing out equities.
5. Real Estate is Local, But the Economy Is Global
Even though Inland Empire homes aren’t traded on the stock exchange, the global economy impacts our local market. Tech layoffs in the Bay Area, inflation numbers out of Washington, or interest rate signals from the Fed all influence buyer demand and price trends in Southern California.
If the economy stays steady through 2025 and rates begin to ease, we could see more upward pressure on prices across the region—especially in entry-level and mid-tier price points where inventory remains tight.
Final Thoughts
The Inland Empire isn’t Wall Street—but what happens in the financial markets still echoes through our neighborhoods, open houses, and escrow timelines.
Whether you’re navigating this market for the first time or you’re a seasoned investor, understanding how economic trends affect local real estate gives you a powerful advantage.
Want to know how the latest trends are affecting your home’s value or your buying power in today’s Inland Empire market? Let’s talk.