Closed escrow sales of existing, single-family detached homes in California during March declined 3.5% month-over-month and fell 2.5% on year-over-year basis for the third straight month.
According to data from the California Association of Realtors (CAR), total home sales declined to 265,320 in March from 272,020 transactions one year earlier. March sales remained below the 300,000 benchmark for the 42nd consecutive month.
“March home sales were subdued, as higher mortgage rates and stock market volatility kept many buyers on the sidelines,” said CAR President Tamara Suminski. “As both geopolitical tension and interest rates ease for the third straight week, buyers and sellers who have been taking a wait-and-see strategy could return to the market if the conflict in the Middle East continues to stabilize.”
While sales were down, the statewide median home price of $889,190 marked a 7.1% spike from February and was in line with the average 7% increase in price movement observed between February and March in the past 20 years. The year-over-year uptick was a slight 0.4%.
The statewide Unsold Inventory Index declined 17.5% from February and was down 5.7% from March 2025. While total active listings rose on a month-over-month basis, they fell below the year-ago level for the second consecutive month. CAR attributed the drop new listings to the “lock-in effect” where homeowners with low-rate mortgages remained reluctant to list their properties in a higher-rate environment.
“The number of homes listed on the market remains low compared to last year’s levels even as the spring homebuying season kicks into its highest gear,” said CAR Senior Vice President and Chief Economist Jordan Levine. “Many homeowners locked in historically low mortgage rates are now reluctant to sell, limiting available inventory. While easing rates are bringing some buyers back to the market, California’s persistent housing shortage remains. This supply/demand imbalance will likely cap sales in the coming months, even as affordability improves modestly.”
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