🏚️ The Downside of Temecula/Murrieta Condominium Real Estate Market: A Buyers’ Paradise – But Sellers Beware

While SoCal's housing market still gets splashy headlines, the reality behind the headlines tells a more sobering story—especially for condo owners and anyone trying to sell fast.

📉 Market Shift Since 2022

• Days on Market are nearly double: In May 2025, homes took an average of 92 days to sell, up a massive 142% from just 27 days in May 2024—and much slower than the 21 days in May 2022 

• 2-bedroom home prices have declined: The median for these homes dropped from $489.9K to $352.5K year‑over‑year—a 31.5% decline 

• Inventory is creeping up, but sales are stagnating: Temecula/Murrieta now has 1629 active listings (May 2025), a 2.6% increase—while home sales slid 8% All signs point to a slowing, less aggressive market—where buyers are dictating pace and pricing.
  

🧱 Condo Crisis: Sitting, Unsold, and Stressed

• Condo sales are barely trickling: Attached homes (like condos) dropped to just 20 closings in May—up 20% from April, and 200% from May of 2024 but still a tiny fraction of the market .

• Older condos face high carrying costs: Many units in Temecula/Murrieta are aging—requiring costly maintenance/repairs. Without major HOA reserves, fees are rising fast as boards scramble to meet safety and structural mandates.

• Buyer avoidance: Escalating HOA dues and deferred upkeep scare off buyers—particularly first-timers and investors who fear unpredictable assessments and delayed saleability.

  
  

😷 The Toll of High HOAs

Temecula/Murrieta HOA hikes are alarming:

• In SoCal, unit dues have soared from $234 to over $800/month due to structural inspections, improvements and fire harding — forcing many owners to offload at rock-bottom prices

  
  

Temecula/Murrieta's older condo communities, lacking deep reserves, risk seeing the same erosion in value and fight for buyer interest—especially as buyers shy away from unpredictable HOAs and looming assessments.

⚠️ Bottom Line for Sellers

1. You’re competing in a buyer’s market: Price drops, financed inspections, and long carrying costs matter—and buyers can wait.

2. Condos are the hardest hit: Sales are weak, HOA charges are rising, and buyer hesitation is strong.

3. Urgency isn’t just a buzzword: To sell, you’ll need aggressive pricing, upgraded disclosures, and transparency on HOA health.

4. Sellers pay for HOA mistakes: Deferred development and overdue repairs all land squarely on seller’s backs—take control now.

🛡️ What Sellers Must Do to Stay Afloat

• Price reality check: Don’t expect 2022 highs—pricing must reflect current demand and growing costs.

• Audit and disclose: HOA financials and upcoming assessment plans shouldn’t be secrets—they must be highlighted early.

• Market differently: Focus listings on single family homes where buyer confidence is higher right now; condos need more story-telling, incentive events, or broker tours.

• Fix and stage: Prevent further deferred maintenance—consider using part of seller’s proceeds to update and reassure buyers.