California recorded approximately 256,550 closed sales of existing single-family homes in January, marking a 10.8% decline compared to December and a 1.3% drop year over year.
This extends the streak of seasonally adjusted annualized sales remaining below 300,000 units to 40 consecutive months. Nevertheless, 24 out of 53 counties posted annual sales growth, including 14 counties that achieved double-digit increases.
The median home price also fell to $823,180, reaching its lowest level in 23 months. This represents a 3.2% decrease from December and the third year-over-year decline within four months, as well as the largest drop since June 2023. Despite the overall decline, median prices increased annually in 31 counties.
Association President Tamara Suminski noted that the market started 2026 at a slower pace despite the strong performance at the end of 2025. However, she expects momentum to improve as mortgage rates ease and housing supply increases ahead of the spring season.
Meanwhile, Chief Economist Jordan Levine explained that interest rate volatility and political uncertainty weighed on the market in January, but stable economic indicators and a rise in pending sales support expectations for a rebound in activity in February.
