If you’ve been waiting for mortgage rates to drop before buying a home, here’s the cold, hard truth: that strategy is already costing you tens of thousands of dollars.

For months, buyers have been holding off, convinced that rates in the 7% range made purchasing impossible. But the market has officially shifted. Buyers are jumping back in—and home prices are climbing fast.

Let’s look at what’s really happening in the Temecula and Murrieta housing markets right now, and why waiting could be the most expensive mistake you make in 2025.

Days on Market: Homes Are Selling Faster Again

One of the first indicators of a heating market is days on market—how long a home takes to sell.

• Murrieta: 31 days (down from 34)

• Temecula: 27 days (unchanged, but already fast)

That might not sound dramatic, but here’s the real story: most move-in-ready homes are selling within a week.

The slightly higher average is skewed by large luxury properties in La Cresta and Wine Country. For the average homebuyer, competition is already heating up.

Homes Are Selling Closer to (or Above) Asking Price

During the pandemic, homes were selling for 105% of list price. That cooled off in 2023—but it’s creeping back.

• Murrieta: 99.8% of list price (up from 99.7%)

• Temecula: 99.6% (up from 98.6%)

In plain terms, buyers are back to offering full price or higher to secure homes.

If you’re still waiting for a “buyer’s market,” it’s not coming anytime soon.

Inventory Is Shrinking—Again

This one surprises a lot of people. Spring is usually when inventory grows. But this year? Buyers are snatching up listings faster than new ones can appear.

• Murrieta: 1.9 months of supply (down from 2.2)

• Temecula: 1.7 months (down from 2.1)

A balanced market has 6 months of inventory. We’re at less than two. That’s still a strong seller’s market, no matter what interest rates are doing.

Closed Sales: Demand Is Still Strong

• Murrieta: 125 closed sales (up slightly from 122)

• Temecula: 98 closed sales (down from 119)

Despite rates hovering near 7%, buyers are adjusting and moving forward. Many have realized that waiting for perfect conditions means missing the market entirely.

The Big One: Prices Are Rising Fast

This is where the numbers get real. Over the past 12 months, average home prices in both cities have jumped significantly:

• Murrieta: $710,000 — up from $663,000 last year (+$47,000)

• Temecula: $837,000 — up from $761,000 last year (+$76,000)

That’s not speculation—that’s data.

If you waited a year hoping rates would drop, it just cost you $47K–$76K in added purchase price alone.

And that doesn’t include higher property taxes, closing costs, or insurance tied to that increased home value.

The Real Math: Interest Rate vs. Purchase Price

A lot of buyers fixate on the monthly payment difference between a 7% and a 6% rate—usually about $150–$300 a month.

But here’s the catch: while you wait for that small drop, home values are climbing $4,000–$6,000 per month.

That’s why waiting doesn’t save you money—it costs you.

And unlike your interest rate, which you can refinance later, your purchase price is permanent.

For Buyers: Why Now Still Makes Sense

You’ve probably heard the saying:

“Marry the house, date the rate.”

That’s exactly the strategy successful buyers are using right now.

• Lock in a home before prices climb further.

• Refinance later when rates drop.

• Build equity immediately instead of waiting on the sidelines.

If prices rose $50K–$75K in a “high-rate” market, what do you think will happen when rates drop to 5%?

👉 Demand will skyrocket—and prices will soar.

Buy now, while competition is still moderate and sellers are open to negotiation.

For Sellers: Your Moment Has Arrived

If you’ve been waiting to list, this is your time.

• Prices are up.

• Inventory is tight.

• Buyers are motivated.

Even compared to previous spring seasons, there are fewer listings available—giving you a huge advantage.

You can either:
✅ Sell now and capitalize on strong prices, or
✅ Wait for rates to drop and sell for more—but in a much more competitive market.

Both options can work—but timing your sale strategically matters more than ever.

The Bottom Line: Don’t Wait for the Perfect Rate

If you’re waiting for mortgage rates to drop before buying, you’re already behind the curve.

The Temecula and Murrieta markets are proving that buyer demand can thrive even at higher rates. With

limited inventory and rising prices, the cost of waiting is real—and expensive.

✅ Buyers: Get in before rates drop and prices spike.
✅ Sellers: Take advantage of low competition while demand remains strong.

Because as these numbers show, the market isn’t slowing down—it’s tightening up.

Watch the Full Guide Below!

Thinking About Buying or Selling in the Temecula Valley?

Whether you’re trying to time your first purchase or wondering if it’s the right moment to list, I’ll help you make a smart move based on the real data—not headlines.

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Whether you’re two weeks, two months, or two years away from moving, it’s never too early to start planning.

Why Work With a Local Expert?

Real estate isn’t just about numbers—it’s about timing, negotiation, and knowing how the market truly behaves.

As one of the top agents in the Temecula Valley and greater Riverside County, I analyze the market weekly to help clients make confident decisions that save (or earn) them tens of thousands of dollars.

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