California recorded 268,810 home sales in May, a 5.1% year-over-year surge for the strongest annual gain in eight months, according to data collected by the California Association of Realtors (CAR). On a month-over-month basis, home sales dipped 3.1% from April’s upwardly revised 277,360 units.
May’s statewide sales remained below the 300,000-unit benchmark for the 44th consecutive month, although the month’s stronger-than-expected performance pushed sales up 1.2% on a year-to-date basis.
Driven by continued sales gains in the higher-priced segment, California’s median home price reached a new record high of $930,260 in May. This marked a 2.3% increase from April’s downwardly revised price of $909,410. CAR noted the monthly gain was more than double the historical average typically observed between April and May over the past 30 years. Year-over-year, the price was up 3.1% from $902,040 in May 2025.
CAR added that sales of homes priced between $1 million and $2 million surged 8.2% from one year earlier, while sales above $2 million soared 8.5%. By comparison, sales in the $500,000 to $1 million range dropped 3.4%. Million-dollar home sales reached a record-high 38.5% of all transactions last month.
Total active listings declined on a year-over-year basis in 40 of the 53 counties tracked by CAR, with the steepest year-over-year countywide declines happening in San Francisco (-42%), Marin (-31.2%) and Nevada (-31.1%). Another 19 counties posted double-digit declines in active inventory.
“Housing supply has remained constrained in recent months as the lock-in effect continued to put many would-be sellers on the sidelines, intensifying competition and placing upward pressure on home prices,” said CAR Senior Vice President and Chief Economist Jordan Levine. “While the statewide median price typically reaches its seasonal peak in May, the recent easing of tensions in the Middle East could bring more buyers back into the market and keep price pressures up at the start of the third quarter.”
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