California home sales end on high note in December, C.A.R. reports

Infographic: https://www.car.org/Global/Infographics/2025-12-Sales-and-Price

Closed escrow sales of existing, single-family detached homes in California reached a seasonally adjusted annualized rate of 288,200 in December, according to data collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. This annualized figure reflects the number of homes that would be sold in 2025 if December's sales pace continued throughout the year, with adjustments made for typical seasonal patterns.

December sales inched up 0.3 percent from 287,450 in November. Compared with a year earlier, December sales were up 2.0 percent from a revised 282,490. For the year as a whole, the state recorded an annual sales level of 271,590, an increase of 0.9 percent from the revised sales level of 269,170 reported in 2024.

Statewide pending home sales were virtually flat with a slight 0.2 percent year-over-year decline in December. On a month-to-month basis, however, pending sales fell sharply by 21.5 percent, reflecting typical seasonal slowing compounded by heightened mortgage rate volatility and growing economic uncertainty.

"California's housing market closed out 2025 on solid footing, with both home sales and available inventory improving over the prior year," said 2026 C.A.R. President Tamara Suminski, a Southern California broker and REALTOR®. "As price growth eased toward the end of the year and mortgage rates fell to near-three‑year lows, the stage is set for a more optimistic 2026. We expect increased opportunities for buyers and a healthier, more balanced market in the months ahead."

California's median home price fell in December from both the prior month and a year earlier, dropping to a 10-month low of $850,680 as market competition cooled more than is typical for the season. The statewide median price declined 0.4 percent from November, defying the historical average 0.9 percent increase between November and December. This marked the second year-over-year drop in the past three months, as well as the largest annual decline since June 2023. Softer demand and elevated inventory continued to weigh on prices at the end of 2025, paving the way for a more balanced market for buyers and sellers entering 2026.

"Housing affordability showed some improvement in the fourth quarter, and the combination of lower mortgage rates and a growing supply of homes should encourage more prospective buyers to enter the market this year," said C.A.R. Senior Vice President and Chief Economist Jordan Levine. "While some policy uncertainty remains as we look ahead to the next 12 months, our outlook calls for modest economic growth and continued progress for the housing market in 2026."

Other key points from C.A.R.'s December 2025 resale housing report include:

• At the regional level, all major California regions recorded year-over-year increases on a non-seasonally adjusted basis. The Far North (23.5 percent) and Central Coast (12.8 percent) stood out as the only regions with double-digit gains from a year earlier. Meanwhile, the Central Valley (5.5 percent), San Francisco Bay Area (2 percent) and Southern California (1.7 percent) all posted more modest annual sales gains. With mortgage rates sliding a full percentage point since a year ago, housing markets across the state are finally seeing a light at the end of the tunnel, and home sales in California should continue to improve, albeit moderately, in the next 12 months.
• At the county level, 39 of the 53 counties tracked by C.A.R. posted year-over-year sales gains in December, with more than half of those counties (22) recording double-digit increases. Plumas led the pack with a 133.3 percent surge, followed by Mono (100 percent) and Lassen (44.4 percent). Meanwhile, 13 counties experienced annual sales declines, including three that fell by more than 10 percent, led by Del Norte (-50 percent), Mariposa (-35.3 percent), and Madera (-12.3 percent).
• Three of California's five major regions recorded year-over-year increases in their median home prices. The Far North posted a moderate gain of 2.8 percent from December 2024, followed by Southern California with a 0.6 percent increase and the Central Coast region with a slight 0.2 percent uptick. In contrast, the Central Valley recorded a drop of 1.4 percent from a year ago, while the San Francisco Bay Area's median prices were unchanged.
• At the county level, 22 of the 53 counties tracked by C.A.R. recorded year-over-year median home price gains. Mono led with a 27.1 percent increase, followed by Imperial (21.5 percent) and Lassen (18.1 percent). Conversely, 30 counties posted annual price declines while Solano's price was unchanged. Trinity experienced the steepest drop (-23 percent), followed by Glenn (-18.6 percent) and Siskiyou (-15.5 percent).
• Housing inventory in December declined from the prior month and prior year, as market conditions slowed housing demand and lengthened the time listings stayed on the market. The Unsold Inventory Index was 2.7 months in December, down from 3.6 months in November and flat from 2.7 months in December 2024. While total active listings increased from a year ago for the 23rd consecutive month, the annual gain recorded in December was the smallest since February 2024. December also marked the eighth consecutive month of decelerating inventory growth, indicating that while housing supply remains elevated, momentum on the supply side is gradually easing as the market moves through its typical off-season.
• The median number of days it took to sell a California single-family home was 36 days in December, up from 31 days in December 2024.
• C.A.R.'s statewide sales-price-to-list-price ratio* was 97.9 percent in December 2025 and 98.7 percent in December 2024.
• The statewide median price per square foot** for an existing single-family home was $408, down from $413 in December a year ago.
• The 30-year, fixed-mortgage interest rate averaged 6.19 percent in December, down from 6.72 percent in December 2024, according to C.A.R.'s calculations based on Freddie Mac's weekly mortgage survey data.

Note:  The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state and represent statistics of existing single-family detached homes only. County sales data is not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower end or the upper end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.

*Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its original list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.

**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 53 counties.

Leading the way…® in California real estate for 120 years, the CALIFORNIA ASSOCIATION OF REALTORS® ( www.car.org ) is one of the largest state trade organizations in the United States with 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Sacramento.

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SOURCE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)