RIVERSIDE, Calif. (KESQ) — Home prices in Riverside County declined slightly in May, dropping from $645,000 to $638,000 for an existing single-family home, according to the California Association of Realtors (CAR). The decrease came as home sales across the state fell by 5.1%, marking the first monthly dip in 17 months.
Statewide, closed escrow sales for existing single-family detached homes totaled a seasonally adjusted annualized rate of 254,190 in May. That’s down from 267,710 in April and 4% lower than May 2024’s figure of 264,850 homes sold.
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The drop marks the lowest statewide sales level in four months, with year-to-date figures barely ahead of 2024. If the slowdown continues, sales could fall behind last year’s pace by June.
In Riverside County, sales fell by 2.5% from April to May, and prices slipped 1.1%, landing at $644,500 in May. The CAR noted that localized data isn’t seasonally adjusted, which may cause some variation compared to statewide trends.
CAR President Heather Ozur framed the market shift as an opportunity for buyers. “With home prices leveling off and more homes coming onto the market, it’s a great time for well-qualified buyers to enter the market,” she said. “Lower prices are making homes more affordable, and the growing inventory means buyers have more choices.”
After hitting a record high in April, California’s median home price dipped to $900,170 in May—down 1.1% from the previous month and 0.9% from May 2024. This drop, influenced by factors like high interest rates, insurance challenges, and economic uncertainty, broke the typical seasonal pattern, which usually sees a slight increase between April and May.
CAR Chief Economist Jordan Levine said prices could continue to ease in the coming months. “Although the market has slowed in recent months, there’s potential for a rebound if economic concerns subside,” he said. “Consumer sentiment appears to have bottomed out and is now showing signs of improvement, which could support a stronger housing market in the second half of the year.”
