California Home Sales Reach Highest Level

California’s housing market is showing renewed momentum as the year heads toward the finish line. According to the California Association of Realtors (C.A.R.), existing single-family home sales reached their strongest pace of the year in October, signaling improving confidence among buyers and sellers alike.

California Home Sales Show Strong Growth

Existing single-family home sales climbed to a seasonally adjusted annualized rate of 282,590, the highest level recorded since February.

Month-Over-Month and Year-Over-Year Gains

Sales increased 1.9 percent from September and 4.1 percent year over year, reflecting steady demand despite elevated mortgage rates. Year-to-date sales are now 0.8 percent higher than last year, reinforcing the market’s underlying resilience.

While overall sales remain below the 300,000-unit threshold for the 37th consecutive month, consistent improvement points to stabilizing conditions across much of the state.

California Home Prices Remain Near Record Highs

The statewide median home price reached $886,960, up 0.4 percent month over month. Although prices dipped slightly on an annual basis by 0.2 percent, values remain close to historic highs seen earlier this year.

Regional Price Performance

Price trends varied by region:

• Central Coast: Up 7.9 percent year over year

• Southern California: Up 1.1 percent year over year

• Bay Area and Far North: Modest annual declines

These trends suggest price stability rather than correction, supported by limited inventory and consistent buyer demand.

Regional Sales Highlights Across California

Sales performance differed by region, with notable standouts:

• Far North: Up 18 percent year over year

• Southern California: Up 5.6 percent

• Central Valley: Up 4 percent

• Bay Area: Up 2.5 percent

• Central Coast: Down 1.5 percent

At the county level, 34 of 53 counties posted annual sales increases, with 16 counties recording double-digit growth. Trinity County led the state with an 85.7 percent surge in sales.

Inventory Levels and Days on Market

Inventory conditions continue to normalize as the market enters its seasonal slowdown.

• Unsold Inventory Index: 3.2 months, down from 3.6 in September

• Inventory remains higher than last year, though growth is slowing

• Days on Market: Averaged 32 days statewide, up from 25 days a year ago

These shifts point to a healthier balance between supply and demand, giving buyers slightly more breathing room while still supporting sellers.

California Housing Market Outlook

C.A.R. leadership remains cautiously optimistic about the months ahead. While rising mortgage rates could temper momentum, economists expect 2025 to close slightly stronger than last year, supported by steady demand and manageable price growth.

Key Takeaways for Buyers and Sellers

What This Means for Buyers

• More balanced conditions create negotiating opportunities

• Increased days on market provide added flexibility

• Monitoring rate dips remains critical for long-term affordability

What This Means for Sellers

• Prices remain near historic highs in many regions

• Low inventory continues to support well-priced homes

• Southern California and Central Coast properties remain especially competitive