The San Bernardino County housing market has undergone a notable shift in the first three months of 2025, with market conditions favoring buyers right now and sellers facing more competition. Since the new year, inventory levels have risen significantly, while buyer demand remains at historically low levels. This shift has resulted in a slower market where homes take longer to sell. Sellers must adjust their expectations accordingly. Specifically, sellers should focus on accurate pricing and prepare their properties thoroughly before listing. Slow market conditions so far this year differ greatly from the fast-paced and highly competitive environment seen between 2020 and 2024. Understanding these shifts is crucial for both buyers and sellers navigating the real estate market in 2025.

Rates and Affordability Issues Affecting Demand in 2025

Housing demand in San Bernardino County remains down due to ongoing affordability concerns and challenges. Mortgage rates, which climbed sharply from 3.25% in early 2022 to over 7% by late 2024, significantly reduced home buyers' purchasing power. Higher borrowing costs mean fewer buyers can afford homes at current price levels, leading to stagnant demand. In detail, the current housing market stats below illustrate why the housing demand in San Bernardino County remains low:

• There is a 1% decline in pending sales compared to 2024 and a 7% drop compared to 2023. Pending sales stand at 1,395. 

• Demand is 33% lower than the pre-pandemic average from 2017 to 2019. Housing affordability post-pandemic proves to be an ongoing problem.

• The cost of financing a $650,000 home with 20% down has increased by approximately $1,197 per month since 2022. This makes homeownership less accessible for many buyers.

• Mortgage rates remain elevated compared to historical lows despite recently dropping to 6.74% in March 2025. Elevated mortgage rates continue to limit demand.
  
  

Active Inventory and Expected Market Time Growing

The active inventory of homes for sale in San Bernardino County has grown dramatically since late 2024. More homeowners are choosing to list their properties now. This is contributing to increased supply. However, when this increase in listings has not been met with sufficient buyer demand, it leads to a longer Expected Market Time, prolonging the time it takes to sell a home.

• Active listings have grown by 48% year over year, reaching 5,051 homes, the highest level recorded since 2019.

• Inventory growth is anticipated to continue, particularly in the spring, as more sellers enter the market.

• The Expected Market Time, which measures how long it would take to sell a home at the current pace of demand, now stands at 109 days. This represents the slowest market pace since tracking began in 2012.

• Compared to last year, when the Expected Market Time was 73 days, homes are now taking over five weeks longer to sell.

Slight Drop in Mortgage Rates May Signal Good News

Mortgage rates play a critical role in shaping the housing market. Low interest rates historically increase demand for property, driving up prices. Meanwhile, high interest rates generally do the opposite. Recent mortgage rate fluctuations in 2025 have influenced both buyer demand and inventory levels. Recent data shows that the relationship between mortgage rates and housing activity is evident. When rates spiked in 2022, demand plummeted, and market activity slowed considerably. 

After remaining above 7% for much of late 2024, mortgage rates hinted at a possible decline, dropping below 6.74% in March 2025. If this trend continues, housing affordability could improve. This may encourage more buyers to enter the market. This would help balance supply and demand looking forward. Despite the recent, slight drop in rates, the market would need further rate reductions to significantly boost buyer participation. Market performance in the coming months will largely depend on Federal Reserve policies and broader economic conditions.

San Bernardino County Luxury Housing Market Trends

The luxury housing market in San Bernardino County, defined as homes priced above $800,000, has also experienced significant shifts. While inventory levels have increased throughout Redlands, Loma Linda, and Yucaipa, demand within this segment remains relatively low despite rising somewhat since 2024. The result is an extended Expected Market Time for high-end properties. On average, the luxury housing market time is about 30 days longer than it is for homes under $800,000 in the area.

Luxury home inventory has grown by 49% year over year, reaching 880 active listings. Meanwhile, luxury demand has only risen by 16%, with 188 pending sales. Despite this slight improvement, the Expected Market Time for luxury homes has lengthened to 140 days, compared to 109 days a year ago. Historically, the luxury market tends to slow further in the second half of the year, which may contribute to even longer selling periods moving forward.

What Can Home Sellers Do in San Bernardino County?

The San Bernardino County housing market in 2025 is characterized by increased inventory, longer Expected Market Times, and continued affordability challenges. Sellers must be prepared for a more deliberate and strategic sales process, emphasizing accurate appraisals, competitive market pricing, and thorough home preparation. Sellers should review the home seller's checklist to ensure their homes are absolutely ready for the market. 

While a possible decline in mortgage rates may offer some relief, the market remains highly sensitive to interest rate movements. Meanwhile, buyers should monitor financial conditions closely, as further rate reductions could create more favorable purchasing opportunities. Understanding these factors will be essential for anyone looking to buy or sell in the current market environment.