Monday Market Update: Two CA Cities In The News

The Super Bowl is behind us, and the spring real estate market is upon us! It’s hard to believe that 2025 was less than 45 days ago, right? Last week, Realtor.com® revealed two California cities that ended the year in notable positions for two different reasons. Here is what you need to know! 

Riverside, CA

Riverside ranked #7 in the top list of buyer’s markets as of December 2025! Realtor.com® explains: “The rule of thumb is that it is a seller's market if supply drops below four months. If supply reaches four to six months, it's a balanced market. More than six months of supply signals a buyer's market.” In November 2025, Riverside housing inventory reached 7.4 months of supply. The January median list price was $585,000. Thus, Southern California buyers looking for greater inventory options and better negotiating power may wish to consider home shopping in Riverside.

Read about the top 10 buyer’s markets in the US here. 

Napa, CA

Napa made the news for a different reason last week, as Realtor.com® reported the city with a #4 ranking among metros with the largest home price declines. The median list price in Napa is now $1,304,500 ($1.42 million in August 2023). 11.6% of listings in Napa saw price reductions in January. Analysts cite 3 key reasons: 1) Napa is a slower migrating market in general, which surged in a post-pandemic environment with more space and fewer restrictions than other surrounding cities. 2) Napa, like Kahului-Wailuku, HI in the #1 price declining position, is considered high-wildfire risk, making insurance costs rise. Cotality's principal economist, Thom Malone states “The decline in prices is necessary to compensate the buyer for the [rising] insurance costs, since the attractiveness of the areas has not changed otherwise." 3) In general, all data points to the fact that the US is in a rebalancing phase.

Current housing market conditions reflect a much-needed normalization driven by economic and housing fundamentals. Economists expect fewer double‑digit price surges and bidding wars as buyers and sellers gradually realign their expectations. 

Read more housing markets with softening growth and steep declines here. 

Stay tuned for Monday Market Updates this season that unveil how the 2026 market unfolds!



Cheers to fresh news & brighter days ahead, 

Bobbi 

Bobbi Decker
DRE#00607999

Broker Associate, Bobbi Decker & Associates
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
NAR Instructor….“Designations Create Distinctions”
CIPS, SRS, ABR, CRS, SRES, GRI, CLHMS, REI, AHWD, RSPS, MSLG

Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/