Temecula Valley Housing Market Trends 2025

The Temecula Valley housing market has experienced notable trends in early 2025, reflecting both opportunities and challenges for buyers and sellers. Here's an overview of the current landscape:

Median Home Prices

• Redfin reports that in January 2025, the median sale price of homes in Temecula was $744,000, marking an 8.5% increase compared to the same period last year.

• Zillow indicates that the average home value in Temecula is approximately $761,628, reflecting a 4.5% rise over the past year.

  
  

Market Competitiveness

The market remains competitive, with homes typically receiving multiple offers. On average, properties sell after 45 days on the market, slightly longer than the 42-day average from the previous year.

Inventory Levels

As of January 31, 2025, there were 323 active home listings in Temecula, with 83 new listings added that month.

Affordability Concerns

The broader Riverside-San Bernardino-Ontario area, which includes Temecula, has been identified as one of the most overvalued housing markets in 2025. Mortgage costs in this region account for approximately 67.8% of the per capita income, raising significant affordability challenges for residents.

Conclusion

The Temecula Valley housing market in 2025 is characterized by rising home prices, sustained competitiveness, and growing concerns about affordability. Prospective buyers and sellers should stay informed about these trends to navigate the market effectively.