The California housing market closed 2025 with modest gains in sales, reflecting the market’s resilience amid declining prices and shifts in mortgage dynamics. Home sales rose for the fourth consecutive month compared to both the previous month and the same period last year, with annual activity surpassing 2024 levels by nearly 1%.
According to data from the California Association of Realtors (CAR), existing single-family home sales during the mortgage-backed period reached a seasonally adjusted annual rate of 288,200 in December 2025.
This represents a 0.3% increase from November, when sales totaled 287,450, and a 2% rise compared to December of the previous year, which recorded 282,490 sales. Over the course of the year, the state’s average home sales reached 271,590 units, marking a 0.9% increase from the previous year.
Despite improvements in closed sales, pending transactions declined due to the usual seasonal slowdown and ongoing concerns over mortgage rates. These transactions fell by 21.5% compared to the previous month and decreased by 0.2% year-over-year.
Tamara Suminski, President of the California Association of Realtors for 2026, stated that the housing market ended 2025 on a strong foundation, with clear improvements in home sales and available inventory compared to the previous year.
She added that mortgage rates dropping to their lowest levels in three years, coupled with a slowdown in price increases, provide a more balanced environment for the real estate market in 2026 and offer buyers better opportunities.
At the regional and local levels, housing market trends varied significantly. The far northern and central coastal regions achieved growth ranging between 23.5% and 12.8% year-over-year, while the central valley, southern bay, and southern California areas saw modest increases of 1.7% to 5.5%.
At the county level, 39 out of 53 counties recorded annual sales growth, with Plumas, Mono, and Lassen topping the list of fastest-growing counties, while Del Norte and Mariposa experienced the largest declines.
Regarding inventory, total properties listed for sale rose for the 23rd consecutive month compared to the previous year, although growth has been slower than usual since February 2024. The unsold inventory index stood at 2.7 months in December, unchanged from the previous year and lower than November’s 3.6 months. Meanwhile, the average time properties remained on the market increased to 36 days, up from 31 days last December.
