Temecula Real Estate Market Update – June 2025 | Buyer’s Market Ahead?
The Temecula housing market is seeing a noticeable shift as we move into the summer of 2025. According to June’s data, we now have 4.5 months of inventory, up from just over 3 months earlier this year. More inventory and longer days on market—currently at 24 days on average—signal a softer market, giving buyers more options and room for negotiation.
Surprising Temecula Housing Market Trends
The median home price in Temecula is $750,000, down 0.7% month-over-month, while new listings average around $777,000. Active listings are also trending upward, with 473 properties on the market. Even though homes are still selling for 99% of list price, the increase in inventory suggests more flexibility for buyers, especially those willing to negotiate closing costs or request seller credits.
Why It Feels Like a Buyer’s Market
Interest rates remain the biggest factor affecting buyer behavior. With mortgage rates hovering near 6% to 7%, fewer buyers are entering the market, which creates more opportunities for those who are ready. Sellers are increasingly open to offering concessions, such as credits for closing costs or interest rate buy-downs. This is especially beneficial for first-time buyers and VA or FHA loan borrowers.
Should You Buy Now?
Many buyers are waiting for interest rates to drop, but doing so could backfire. Once rates decline, buyer competition will likely surge, driving home prices higher. Purchasing now—when competition is lower—could allow you to secure a home you love, then refinance later when rates fall.
Key June 2025 Highlights for Temecula:
Median sold price: $750,000
Median list price of new homes: $777,000
Active listings: 473 homes
Median days on market: 24 days
Homes selling for 99% of list price
For buyers, this is a rare window of opportunity to secure better terms and more choices. Sellers, on the other hand, need to price their homes correctly to attract the right buyers—gone are the days of multiple offers over asking from 2021–2022.
Thinking of buying your first home?
Don’t miss my free Homebuyer’s Workbook to Southwest Riverside, a step-by-step guide to navigating the local market. Download your copy here, or reach out to me directly for a customized market report for your area.
