Monthly Market Report: Temecula, California - July 2025

Existing SFR Home Sales:
* There were 84 existing single-family residence (SFR) home sales in July 2025.
* This represents a 25.0% decrease compared to the same period last year.

Existing SFR Median Price:
* The median price for existing SFR homes is $775,000.
* This is a 7.2% decrease from the previous year.

Active Listings:
* There are currently 352 active listings on the market.
* This is a significant increase of 105.8% compared to last year.

Market Competition:
* Median Days on Market: 34 days.
* Sales-to-List Price Percentage: 100.0%.
* Percentage of Active Listings with Reduced Prices: 49.4%.

Sales-to-List Price Analysis & Buyer Concessions:
A sales-to-list price percentage of 100% indicates that, on average, homes are selling for their original asking price. However, this doesn't always mean buyers aren't getting any financial benefit. In situations where demand cools down, sellers often offer *concessions* to attract buyers, rather than directly reducing the list price.

Understanding Concessions:
* Concessions vs. Discounts: A price discount directly lowers the sale price of the home. Concessions, on the other hand, are incentives offered by the seller to cover specific buyer expenses.
* How Buyers Use Concessions: Buyers can use concessions for various purposes, such as:
* Closing Costs: Sellers might contribute towards the buyer's closing costs (loan origination fees, appraisal fees, title insurance, taxes, etc.).
* Prepaid Expenses: Funds to pre-pay property taxes or insurance
* Home Repairs: Sellers might provide a credit to address necessary repairs identified during the home inspection.
* Rate Buydown: A concession can be used to temporarily or permanently reduce the buyer's mortgage interest rate, making the loan more affordable.

*Summary:*

The Temecula real estate market in July 2025 shows a mixed picture. While active listings have more than doubled compared to the previous year, home sales and median prices have both decreased. The sales-to-list price ratio of 100% indicates that homes are still selling at their asking prices, but the high percentage of listings with reduced prices (49.4%) and the likelihood of sellers offering concessions suggest that sellers are adjusting to market conditions to attract buyers. Overall, there appears to be increased inventory and potentially softening demand compared to the previous year. Sellers might be using concessions to make their properties more attractive without lowering the list price.

Contact us to buyer or sell real estate in and around Temecula, Califorina.

Thank you,

Scott and Caroline Doan Realtors®

(951) 541-3498

Realty Executives 28581 Old Town Front St. #100 Temecula, Ca. 92591

doanhomesale@gmail.com