The Temecula Real Estate Market in May 2025 is Showing Signs of Shifting
But not quite enough to call it a buyer’s market just yet. According to the latest data, there are currently 3.88 months of inventory, which still favors sellers but is inching toward a more balanced state. If you’ve been on the fence about buying or selling, this could be the right time to make a move.
The median sold price for homes in Temecula last month was $755,000, with homes selling in just 20 days on average. Interestingly, homes are selling for 99.5% of their list price, which shows that while sellers are starting to negotiate more, pricing remains strong.
New Listings Are On the Rise
With 242 homes hitting the market in May—many of them priced around $862,000. This seasonal surge gives buyers more options, particularly for those hoping to close before the school year starts or who want to take advantage of longer summer days for moving.
Mortgage rates remain a critical factor. Currently, they’re hovering around 6.8%, with VA and FHA loans sitting closer to 6.4%. However, if you’re considering new construction, builders are offering enticing rate buy-downs—sometimes into the high 4% to low 5% range—plus other incentives like closing cost credits.
If You’re Looking to Buy in Temecula Real Estate Market
Or in nearby cities like Murrieta, Menifee, or Wildomar—it’s crucial to get pre-approved. Sellers still prefer buyers who are ready to act fast, especially in a competitive summer market. I work with several trusted lenders, so let me know if you’d like a referral.
Want to dive deeper into the numbers? I’ve put together a detailed Market Activity Report for May 2025, which includes stats on active, pending, and sold properties, including price trends and average days on market. Just contact me and I’ll send it to you—no pressure, no obligation.
And if you’re a first-time homebuyer, don’t miss my Homebuyer’s Workbook to Southwest Riverside. It’s a free, printable resource packed with tips, exercises, and checklists to help you make smart buying decisions in cities like Temecula, Murrieta, and Menifee.
📲 Let’s talk! Whether you want a custom report for your neighborhood or you’re ready to start shopping, I’m here to help.
