Home Price Growth May Be Picking Back Up — What It Means for Murrieta Buyers and Sellers

If you've been paying attention to the housing market headlines over the past year, you've probably seen a lot of talk about prices cooling down. And for a while, that was true — home price growth slowed significantly from the highs we saw in 2024.

But here's what the latest data is telling us: that slowdown may have hit its bottom, and prices could be starting to pick back up again.

As your local Murrieta real estate brokers, we want to break down what this means for you — whether you're thinking about buying or selling.

The Numbers Are Starting to Turn

For the past couple of years, home price growth has been cooling. It dropped from around 7% in mid-2024 to much lower levels. But look at the most recent data — the pace of growth appears to have hit its floor and is now starting to edge upward again.

While a couple months of data doesn't guarantee a lasting trend, there are other signs pointing in the same direction.

Fewer Markets Are Seeing Price Declines

One of the strongest indicators is that fewer and fewer housing markets are experiencing price drops. According to data from ResiClub and Zillow, about 36% of the 300 largest housing markets had falling prices in mid-2025. Since the start of this year, that number has been shrinking steadily.

Now? Only about 23% of those markets are seeing mild price dips. When fewer markets see prices falling, it means more markets are seeing prices rise — and that's exactly what's happening.

Forecasts Support the Trend

On average, economists project home prices will rise about 2.3% nationally this year. For that to happen, price growth would need to pick up in the second half of 2026 — which is exactly what the recent data suggests is happening.

But remember, real estate is always local. National averages are just that — averages. What matters is what's happening right here in Murrieta, Temecula, and Southwest Riverside County.

More Metros Are Seeing Price Gains

Here's another encouraging sign: more major metro areas are seeing prices go up than down. Not long ago, markets were split about 50/50 — half rising, half falling. Now, more than half of major metros are seeing price increases.

As Selma Hepp, Chief Economist at Cotality, explains: "Local markets continue to tell very different stories. Some markets, especially those supported by strong job and income growth, have seen notable acceleration in price gains."

What This Means for Murrieta Buyers

If you've been waiting for the "perfect" time to buy, here's the reality: slower price growth has been working in your favor. You've had more room to negotiate and a budget you could plan around. But if price growth is picking up in our area, buying now could mean paying less than you would later this year.

The median home price in Murrieta is approximately $670,000. Even a small increase in price growth could add thousands to your purchase price over the next few months.

Not sure where to start? Check out our complete buying guide or visit our first-time buyer resource hub to get prepared.

What This Means for Murrieta Sellers

If you own a home in Murrieta, you've been building equity all along — even during the slowdown. If growth picks up, those gains could accelerate. Lawrence Yun, Chief Economist at the National Association of Realtors, projects the typical homeowner will gain roughly $16,000 in housing wealth this year.

And if you're thinking about selling, this shift is a positive sign. The market is still balanced and buyer-friendly in many areas, but the trend is moving in the right direction for sellers.

Want to know where you stand? Grab a copy of our seller's guide and check your equity with a free home valuation.

The Bottom Line

Home price growth cooled off significantly, and now it's showing early signs of picking back up. Whether you're buying or selling, the best thing you can do is understand what's happening in your local market — not just the national headlines.

That's where we come in. As your Murrieta real estate brokers, we track the local data every day so you don't have to. Let's connect and talk about what these trends mean for your specific situation.