California recorded 264,260 single-family home sales in June, up 4% from the 254,190 homes sold in May and down 0.3% from the 264,960 homes sold one year earlier.
According to the California Association of Realtors, June’s upswing reversed three consecutive months of sales declines and was only one of two months of sales increases for the first half of 2025. However, the year-over-year decline marked the third straight decrease and was the first time since late 2023 that annual sales fell for three consecutive months. Statewide pending sales in June slipped from last year’s level for the seventh consecutive month, posting the largest year-over-year drop since January.
“With more properties on the market and price growth flattening, conditions have become more favorable for prospective buyers who have been waiting on the sidelines to re-enter the market and take advantage of increased negotiating power,” said CAR President Heather Ozur, a Palm Springs realtor. “While sales could remain soft at the start of the third quarter, recent improvements in housing sentiment suggest that the market could see a bounce-back in the second half of the year.”
California’s median home price fell for the second straight month in June to $899,560, down 0.1% from May and was also down 0.1% from $900,720 in June 2024. This marked the first time in three months that the median home price was below the $900,000 mark.
New active listings declined year-over-year in June for the first time in six months, falling 5% year-over-year and 10.2% month-over-month. The median number of days it took to sell a California single-family home was 24 days in June, up from 18 days from one year ago.
“While the California housing market has not yet fully transitioned to a buyers’ market, it is exhibiting increasing signs of being more balanced. Inventory levels continue to normalize, with active listings posting year-over-year gains and the time on market has lengthened compared to the prior year, indicating a deceleration in the pace of sales activity,” said CAR Senior Vice President and Chief Economist Jordan Levine. “Additionally, the proportion of homes closing above asking price has declined, reflecting a reduction in the intensity of bidding competition. As a result, sellers are demonstrating greater willingness to negotiate on pricing, concessions, and other terms, which creates more advantageous conditions for those considering a home purchase.”
