Inland Empire Housing Market Forecast & Trends, 2017

Recent housing market forecasts for California’s Inland Empire suggest that the region could experience above-average home price gains during 2017, when compared to the nation as a whole. This is partly due to an influx of buyers fleeing the more expensive markets closer to the coast.

Affordable Inland Empire Housing Market Attracts Buyers

Southern California home buyers looking to avoid the comparatively high home prices along the coast are moving further inland. This real estate trend is boosting home prices in places like Riverside and San Bernardino. This bodes well for the Inland Empire housing market in 2017, and for home values in particular.

This assessment was made by the housing analysts at the California Association of Realtors (CAR). In a recent report, CAR economists said that limited inventory and high prices are driving home buyers into the Inland Empire.

The coastal cities might have more jobs, but the better housing deals are found further inland. And buyers are seeking them out.

Related: 5 important home-buying requirements

According to a February 17 news release from CAR: “In Southern California, an influx of buyers from coastal employment areas into the Inland Empire drove healthy year-over-year sales in Riverside and San Bernardino.”

Sales have risen across the region, year over year. The number of homes sold in Riverside, California rose 9.9% in January 2017, compared to a year earlier. In San Bernardino, sales rose 6.7% during the same 12-month period. Median home prices rose steadily in both cities as well, especially in Riverside (which recorded a 9% year-over-year increase in prices).

Across the Inland Empire, home prices rose 7% from January 2016 to January 2017 landing at $312,500, according to the CAR report.

Real Estate Forecast for 2017: Above-Average Gains?

Forecasts for the Inland Empire housing market also appears promising. Most cities in the region are expected to outperform the national average for home-price gains during 2017.

For example, the real estate research team at Zillow expects U.S. home prices (nationwide) to rise by 3% between now and February 2018. Their forecast for key cities across the Inland Empire is higher than the national outlook.

Here are the company’s expectations for price growth in the region’s biggest cities, over the next 12 months:*

• Fontana: +4.4%
• Moreno Valley: +4.9%
• Rancho Cucamonga: +4.4%
• Riverside: +4.8%
• San Bernardino: +5.2%

* The Inland Empire housing market forecasts above were issued on February 2016 and extend through February 2018. See disclaimer blow.

As mentioned in the CAR report above, these real estate markets appeal to Southern California home buyers who cannot afford the pricier cities located closer to the coast. And there’s a big difference in terms of prices. At the time of publication, the median home price in San Bernardino was $246,500. Riverside’s median was $338,600.

By comparison, the median sales price for both Los Angeles and San Diego had risen above $600. So you certainly get more house for your dollar as you move away from the coast.

Inland Empire housing markets are generally more affordable than their coastal counterparts, and for several reasons. One reason is that “everyone” wants to live near the coast, and this higher level of demand pushes house values north. We are also seeing inventory shortages in many of California’s coastal real estate markets, which is less of an issue in the Inland Empire.

Disclaimer: This story contains forecasts and projections for the Inland Empire housing market in 2017. These predictions were provided by third parties not associated with our company. We have presented them here as part of our mission to educate California home buyers and mortgage shoppers.