Let’s face it—interest rates in the high sixes and sevens aren’t going anywhere for now.

At the start of the year, economists and the Federal Reserve expected inflation to cool off and pave the way for several rate cuts. But as the months have passed, inflation has proven more stubborn than expected. That means rate relief isn’t happening yet.

So how is that affecting our local market? Surprisingly, not the way you might think.

Here’s what’s really happening in the Temecula and Murrieta housing markets right now—and why buyers are still moving forward despite higher borrowing costs.

Days on Market: Homes Are Selling Faster Again

Even with interest rates hovering near 7%, homes aren’t sitting for long.

• Murrieta: Average days on market dropped from 33 to 27 days.

• Temecula: Down even more dramatically, from 25 days to just 17 days.

That means homes are now selling faster than at any point this year.

For buyers, this signals a clear trend: competition is rising again, and desirable homes are moving within the first weekend of being listed.

Percent of List Price: Buyers Are Paying (Almost) Full Price

This metric shows what percentage of the asking price homes are actually selling for—and it’s an important one.

• Murrieta: Sellers are getting 99.4% of their original list price (just a slight dip from 99.6%).

• Temecula: Up to 100.8%, compared to 99.7% the month before.

Translation: buyers are back to offering full price—or even above it—to secure homes.

And they’re doing it despite interest rates, which tells us something important: rent prices and limited inventory are pushing people to buy anyway.

Inventory: Still a Strong Seller’s Market

When it comes to housing inventory, the numbers confirm what we’re feeling on the ground.

• Murrieta: 2.5 months of supply (up slightly from 2.4).

• Temecula: 2.3 months—unchanged from last month.

A balanced market has six months of supply. We’re nowhere near that.

Homes are selling just as fast as they’re being listed, leaving almost no surplus inventory. It’s still very much a seller’s market, even with elevated interest rates.

Closed Sales: Activity Is Climbing Again

This is one of the most encouraging indicators.

• Murrieta: 150 closed sales (up from 143).

• Temecula: 138 closed sales (up from 116).

Those are the highest levels we’ve seen in months, showing that buyers are adapting to current rates instead of waiting on the sidelines.

Home Prices: Holding Strong (and Rising Slightly)

Average home prices tell the story of long-term stability.

• Murrieta: $713,000 (up $1,000 from last month).

• Temecula: $828,000 (down slightly from $836,000).

That minor dip doesn’t mean home values are falling. It simply reflects more lower-priced homes selling this month compared to last. Across the board, home prices are holding steady—and in many cases, inching upward.

What This Means for Buyers

If you’re a buyer, here’s what these numbers mean for you right now:

• Days on market are down → Good homes are going fast.

• Prices are stable or rising → Waiting isn’t saving you money.

• Inventory is low → You’ll need to act quickly and come strong with your offer.

The good news? You no longer have to compete with dozens of offers or waive every contingency like during the COVID boom. But you should still expect to offer full price with great terms if you want to win in this market.

And remember: you can refinance later when rates drop—but you can’t go back and pay last year’s home prices.

What This Means for Sellers

If you’re a seller, this market is working in your favor.

Low inventory means:
✅ Minimal competition.
✅ Shorter time on market.
✅ Strong offers, often within the first weekend.

We’re seeing homes sell after just a few days of open houses, with most sellers reviewing multiple offers by Monday.

So, if you’ve been considering selling—especially to relocate out of state or downsize locally—this is your window to list before the next wave of inventory hits.

The Bottom Line: Rates Are High, But the Market Is Moving

Despite higher interest rates, the Temecula Valley market is proving remarkably resilient.

Buyers have realized that waiting for rates to drop could backfire. If you buy now, you can ride the appreciation wave, refinance later, and likely save hundreds per month once rates ease.

Wait too long, and you risk 15–20% higher prices when rates finally fall and demand surges again.

👉 In short: Buy the house. Date the rate. Build the equity.

Thinking About Buying or Selling in the Temecula Valley?

If you’re trying to time your move, don’t do it alone. I analyze this market every week, and I can help you make a data-driven decision that fits your lifestyle and goals.

📲 Call, text, or email anytime.
💻 Or schedule a 1-on-1 Zoom consultation

Whether you’re two weeks, two months, or two years away from moving, I’ll walk you through the numbers and timing that make sense for you.

Watch the full guide below!

Why Work With a Local Expert?

The Temecula Valley isn’t just another SoCal market—it’s a patchwork of micro-markets that move differently depending on inventory, schools, and price ranges.

As one of the top agents in Temecula, Murrieta, and the greater Riverside County area, I help clients navigate the trends, negotiate better deals, and stay ahead of the curve—no matter what the Fed does next.

⭐ Check out my five-star reviews on Google and Zillow to see how I’ve helped families buy and sell with confidence, even in complex markets like this one.