The U.S. housing market in 2025 is showing signs of stabilization, with national trends indicating a cautious optimism. However, regional markets like San Bernardino and the Inland Empire (IE) in Southern California are experiencing unique dynamics that set them apart. This blog post delves into the national housing trends and contrasts them with the specific trends observed in the San Bernardino and Inland Empire real estate markets.
National Housing Market Trends in 2025
The National Association of REALTORS® (NAR) reports that existing-home sales in February 2025 increased by 4.2% from the previous month, reaching a seasonally adjusted annual rate of 4.26 million. Despite this monthly uptick, sales were still 1.2% lower than a year ago. The median existing-home price rose to $398,400, marking the 20th consecutive month of year-over-year price increases.
Mortgage rates have stabilized around 6.65% as of March 2025, providing some relief to buyers compared to the higher rates experienced in 2024. citeturn0search3 Inventory levels have also improved, with 1.24 million units available, representing a 3.5-month supply at the current sales pace.
NAR forecasts for 2025 include 4.5 million existing-home sales and a median existing-home price of $410,700. The association anticipates that mortgage rates will stabilize near 6%, which could encourage more homeowners to list their properties, thereby increasing inventory levels.
San Bernardino and Inland Empire Real Estate Trends
The San Bernardino and Inland Empire regions have historically been more affordable alternatives to coastal Southern California markets. However, recent trends indicate that these areas are experiencing significant changes:
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Price Appreciation: Home prices in the IE have seen substantial growth, narrowing the affordability gap with neighboring counties.
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Inventory Constraints: Similar to national trends, the IE faces limited housing inventory, contributing to competitive market conditions.
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Buyer Demand: The region continues to attract buyers seeking relatively affordable housing options, sustaining demand despite rising prices.
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New Construction: There is an uptick in new home construction aimed at first-time buyers, although supply still lags behind demand.
Source: Realtor.com
Comparative Analysis: National vs. Inland Empire Trends
| Metric | National | San Bernardino/Inland Empire |
|---|---|---|
| Home Sales | 4.26 million annual rate (Feb 2025) | Stable with high demand |
| Median Home Price | $398,400 (Feb 2025) | Increasing, approaching coastal market levels |
| Mortgage Rates | Stabilizing around 6.65% | Similar trends observed |
| Inventory Levels | 1.24 million units (3.5-month supply) | Tight inventory, leading to competitive market |
| New Construction | Gradual increase in housing starts | Focused on entry-level homes, but supply remains limited |
Implications for Buyers and Sellers
For Buyers:
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Be prepared for competitive bidding situations due to limited inventory.
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Consider exploring new construction options, which may offer incentives.
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Stay informed about mortgage rate trends to time your purchase effectively.
For Sellers:
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The current market conditions favor sellers, with high demand and limited supply.
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Proper pricing and home presentation remain crucial to attract serious buyers.
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Consult with local real estate professionals to navigate the dynamic market landscape.
In summary, while the national housing market shows signs of stabilization with modest improvements in sales and inventory, the San Bernardino and Inland Empire regions continue to experience robust demand amidst tight inventory conditions. Both buyers and sellers should stay informed and work closely with real estate professionals to make strategic decisions in this evolving market.
