The statewide median home price is holding steady, a sign of a healthier, more balanced market
The California housing market showed continued strength in October 2025, with existing single-family home sales reaching their highest level since February.
Sales Activity Rises:
Closed escrow sales totaled a seasonally adjusted annualized rate of 282,590 units in October. This marked the third consecutive monthly gain, representing a 1.9% increase from September and a significant 4.1% rise from October 2024. Year-to-date sales are also up 0.8%. This trend indicates steadily improving housing demand and active buyers, despite sales remaining below the 300,000-unit benchmark for 37 straight months. Pending sales also edged up 0.8% year-over-year.
Stable Prices and Easing Inventory:
The statewide median home price remained remarkably stable at $886,960, ticking up 0.4% from September. While prices dipped a marginal 0.2% annually, they are holding steady near the record high reached earlier in the year. The Far North region led annual sales gains (18%), while the Central Coast saw the most significant price increase (7.9%).
Inventory continues to ease as the market enters the off-season. The Unsold Inventory Index (ULL) was 3.2 months, down from 3.6 months in September, and total active listings saw their smallest annual increase since February 2024, signaling that supply momentum is slowing.
Key Market Indicators:
- The median time on market extended to 32 days (up from 25 days last year), reflecting a healthier balance between buyers and sellers.
- The 30-year fixed mortgage interest rate averaged 6.25%, down from 6.43% a year ago, helping sustain buyer confidence.
Despite volatility in mortgage rates and economic uncertainty, the combination of rising sales and stable prices suggests a promising moment for the California real estate market as it heads into 2026.
Source: California Association of REALTORS®