The Riverside housing market has been a rollercoaster ride this year, reflecting a mix of encouraging signs and ongoing challenges. With 240 closed residential transactions and an average sold price of $717,127, the market shows resilience. However, the average days on market for a home stands at 29 days, indicating a brisk pace but also underlying factors worth considering.
Riverside Housing Stats, July 2024
Closed Transactions: 240
Average Sold Price: $717,127
Average Days on Market: 29
New Listings: 167
Housing Market Overview
The median home price in Riverside County reached $600,334 in July 2024, marking a 5% increase from the previous year. This uptick is a positive indicator of the market’s strength, but it comes with a caveat. Less than 30% of households in Riverside and San Bernardino counties can afford a median-priced single-family home. This affordability issue is a significant concern, highlighting the disparity between home prices and income levels in the region.
New listings in Riverside stood at 167 in July, which is relatively modest. The limited inventory has been a persistent issue, contributing to the upward pressure on home prices. Despite the high demand, particularly from families moving in from Orange and Los Angeles counties, the supply of homes has not kept pace, exacerbating the affordability problem.
Realtor Josh Avila summed it up well, saying, "In July 2024, Riverside experienced a steady real estate market with a notable increase in the number of homes sold compared to the previous month. Sales activity was particularly strong in the mid-range price segments, driven by continued interest from buyers in neighboring Orange and LA Counties. Despite a slight rise in inventory, demand remained robust, keeping price levels stable and competitive."
Industrial Market Insights
The industrial sector in the Inland Empire has shown a promising rebound in the second quarter of 2024. Positive absorption and increased leasing activity indicate a resurgence in this segment. However, the vacancy rates have risen to 6.8%, a notable increase that suggests a nuanced picture. While demand for industrial space is growing, the availability of vacant properties indicates a potential mismatch between the types of spaces available and what businesses are seeking.
This dual dynamic in the industrial market highlights a period of adjustment. Companies are returning, and new businesses are setting up operations, but the market is still finding its balance. The increase in leasing activity is a good sign, pointing to future growth and stability in the industrial sector.
Multifamily Market Trends
The multifamily market in the Inland Empire has also experienced positive trends in Q2 2024. With an occupancy rate of 94.7% and 667 units absorbed, this sector shows strong demand. Interestingly, the City of Riverside has seen a plateau in multifamily prices for the first time since 2019. This stabilization could be a sign of a maturing market or a response to the broader economic conditions.
One of the critical factors influencing the multifamily market is the drop in interest rates to 6.74%. This reduction has spurred interest among potential homebuyers, yet the inventory remains insufficient to meet the high demand. The influx of families from Orange and Los Angeles counties moving to Riverside continues to drive demand, putting additional strain on the already tight housing market.
The Wrap Up
As of July 2024, the Riverside real estate market presents a mixed picture. On the residential front, rising home prices and limited affordability pose challenges, despite strong demand and a healthy number of closed transactions. The industrial market is rebounding, but increasing vacancy rates suggest a period of adjustment. Meanwhile, the multifamily sector shows robust demand and high occupancy, but a plateau in prices and insufficient inventory highlight ongoing supply issues.
Understanding these dynamics is crucial for potential buyers, sellers, and investors. Balancing demand and supply, improving affordability, and addressing the nuanced needs of various market segments will be key to maintaining the region's attractiveness and vibrancy.
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