California’s housing market closed 2025 on a high note with sales rising on both a month-over-month and year-over-year measurement.
According to data from the California Association of Realtors (CAR), the state recorded 288,200 closed escrow sales of single-family homes in December, up by 0.3% from 287,450 in November and up 2% from a revised 282,490 in December 2024.
For 2025 as a whole, the state recorded an annual sales level of 271,590, an increase of 0.9% from the revised sales level of 269,170 reported in 2024.
Statewide pending home sales in December were down 0.2% from one year earlier but were also down 21.5% from November, which CAR attributed to seasonal slowing compounded by heightened mortgage rate volatility and economic uncertainty.
“California’s housing market closed out 2025 on solid footing, with both home sales and available inventory improving over the prior year,” said 2026 CAR President Tamara Suminski, a Southern California broker and realtor. “As price growth eased toward the end of the year and mortgage rates fell to near-three‑year lows, the stage is set for a more optimistic 2026. We expect increased opportunities for buyers and a healthier, more balanced market in the months ahead.”
California’s median home price fell in December dropped to a 10-month low of $850,680, down from $853,780 in November and down from $861,020 in December 2024. This marked the second year-over-year drop in the past three months, as well as the largest annual decline since June 2023.
“Housing affordability showed some improvement in the fourth quarter, and the combination of lower mortgage rates and a growing supply of homes should encourage more prospective buyers to enter the market this year,” said CAR Senior Vice President and Chief Economist Jordan Levine. “While some policy uncertainty remains as we look ahead to the next 12 months, our outlook calls for modest economic growth and continued progress for the housing market in 2026.”
