Blog

Riverside, CA: Real Estate Market & Trends 2016

Published on Tuesday - January 10, 2017

The theme for the Riverside real estate market in 2016 was growth. The first-half of the year experienced a combination of progressing home prices and appreciation rates, as prices for Riverside real estate continued to grow from the previous year. In addition, home prices and appreciation rates surpassed the national average during the first six months of the year. Gains in the last three years have also extended the trend of positive price growth since the recession, helping to benefit homeowners and investors alike.

Market factors that propelled the Riverside real estate market during the first part of 2016 included improvements to the local economy and an expanding housing market. Job-growth remained strong compared to other markets, while unemployment continued to improve. Construction for new housing also fared well, as it continued to outpace the national average. Home affordability, on the other hand — which is typically stronger in Riverside than most markets — took a hit in Q2 as the monthly-mortgage-to-income ratio rose above the national average. Nevertheless, the Riverside real estate market remains poised for continued growth.

Riverside, CA Real Estate Market Statistics:

Riverside real estate investors

A major highlight for the Riverside real estate market in 2016 was home appreciation. Home values soared in the first-half of the year, as Riverside real estate experienced one-year appreciation rates of 8.2 percent, compared to the national average of 4.9 percent. Three-year rates fared even better, as home appreciation reached an astounding 31.2 percent during the second quarter, whereas the rest of the country achieved rates at 17.8 percent. As home appreciation continues to grow, the rise in investor activity should follow with it. For those considering Riverside real estate investments, the following highlights appreciation gains in previous years:

  • Homes purchased in the Riverside, CA housing market one year ago have appreciated, on average, by $28,615. The national average was $14,963 over the same period.
  • Homes purchased in the Riverside, CA housing market three years ago have appreciated, on average, by $88,505. The national average was $46,878 over the same period.
  • Homes purchased in the Riverside, CA housing market five years ago have appreciated, on average, by $157,506. The national average was $82,353 over the same period.
  • Homes purchased in the Riverside, CA housing market seven years ago have appreciated, on average, by $171,737. The national average was $77,054 over the same period.
  • Homes purchased in the Riverside, CA housing market nine years ago have appreciated, on average, by $29,366. The national average was $31,126 over the same period.

The Riverside real estate market achieved sizeable gains in home equity during the first part of the year. Price appreciation and principle payments in the last three years have boosted total equity growth since the recession. Furthermore, gains in total home equity for Riverside real estate have surpassed the national average in seven of the last nine years, with homes purchased in year seven appreciating by the largest margin. From an investor standpoint, the Riverside real estate market remains rich in investment opportunity, especially since gains in total equity have rivaled the rest of the country.

According to RealtyTrac, there were 964 properties in Riverside in some stage of foreclosure during the month of November, a six percent increase from the previous month, yet three percent lower than the same time last year. Another element of foreclosures is bank owned real estate (REO). The number of REO properties in Riverside was 2.5 percent lower than the previous month and 9.3 percent from the same time last year. A reduction in the number of foreclosures is generally a good sign for real estate markets. However, it shouldn’t discourage potential investors. Investment opportunities are dormant in every housing market, but it’s up to Riverside real estate investors to identify them in their market.

Riverside, CA Real Estate Market Summary:

Riverside real estate investments

  • Current Median Home Price: $315,500
  • 1-Year Appreciation Rate: 8.2%
  • 3-Year Appreciation Rate: 31.7%
  • Unemployment Rate: 6.6%
  • 1-Year Job Growth Rate: 3.3%
  • Population: 316,619
  • Median Household Income: $56,592

Riverside, CA Real Estate Market (2016) — Q2 Updates:

Riverside housing market

The Riverside real estate market performed well during the second quarter of 2016. The median home price was higher than the national average of $239,167, reaching $315,500 in Q2. Home appreciation also fared well for Riverside real estate. One-year and three-year rates soared to 8.2 percent and 31.7 percent during the second quarter, whereas the national average achieved rates of 4.9 percent and 17.8 percent. In terms of home prices, gains in the last three years have extended the trend of positive price growth after the recession.

One component that helped to boost the Riverside real estate market in 2016 was the local economy. Employment remained strong compared to other markets during the second quarter, as job growth reached 3.3 percent, compared to 1.9 percent by the national average. However, unemployment rates — although improved relative to last year — continued to lag behind the national average. The unemployment rate for Riverside was 6.6 percent during the second quarter, as opposed to the national average of 4.9 percent. Nevertheless, the local economy in Riverside improved in the second quarter of 2016, and the trend should continue moving forward.

New housing construction also influenced the Riverside housing market in 2016. The second quarter saw the level of construction in Riverside reach 50.2 percent above the long-term average, while single-family housing permits rose to 41.6 percent, compared to 10.6 percent achieved by the rest of the country. Construction is on the rise relative to last year, suggesting the local inventory has stabilized. On the flip side, home affordability remains in need of improvement. The Riverside housing market saw weaker affordability than most markets, as homeowners paid 19.2 percent of their income to mortgage payments in the second quarter, while the national average paid 15.8 percent.

Looking forward, the Riverside real estate market is expected to experience greater price growth than the national average in the next 12 months. Riverside real estate is predicted to grow by 3.9 percent, according to the National Association of Realtors (NAR), whereas the national average should see gains of 3.6 percent. Although price expectations are higher than the rest of the country, this NAR prediction remains at the same level as a year ago. 

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

🔒 Your information is secure and never shared. By subscribing, you agree to receive blog updates and relevant offers by email. You can unsubscribe at any time.