What December’s Housing Trends Mean for You
If you’ve been keeping an eye on the California housing market lately, you know it’s been a bit of a wild ride. But as we wrap up December 2025, the latest data from the California Association of REALTORS® suggests things are finally settling into a more predictable groove.
If I had to describe the vibe of the market right now, it would be “cautiously steady.” It’s not the frantic bidding-war era of years past, but it’s certainly not a standstill either.
Let’s talk numbers. The median home price in California is currently sitting at $850,680. While that’s still a hefty sum, it’s actually down about 1.2% from this time last year. We’re seeing a similar dip in the price per square foot, which is now averaging $408. For buyers, this slight cooling is a welcome breath of fresh air. It feels like the market is catching its breath rather than sprinting uphill.
One of the most interesting shifts is the pace of sales. There were about 288,200 existing home sales this month, up 2% year-over-year. However, homes are staying on the market a bit longer—about 36 days on average. That’s a 16.1% jump in duration compared to last year.
As a buyer, this is great news; it means you actually have a moment to think, grab a coffee, and maybe even sleep on it before making an offer. You’re also seeing homes sell for about 97.9% of their list price, so there’s a little more room for negotiation than there used to be.
Inventory remains the steady pulse of the market, holding firm at 2.7 months. Meanwhile, the 30-year fixed mortgage rate has dipped slightly to 6.19%. It’s a small change, but combined with a tiny tick upward in the Affordability Index (now at 17%), it makes the dream of homeownership feel just a bit more reachable.
Ultimately, the December data shows a market that is finding its balance. Whether you’re looking to sell your family home or finally get those keys to your first condo, the current landscape is less about “winning” and more about finding the right fit.
Source: California Association of REALTORS® (C.A.R.)