Sales in the state climbed to their highest level since February
California’s housing market showed signs of renewed activity in October, with existing single-family home sales climbing to their highest level since February, according to the latest data from the California Association of Realtors (C.A.R.).
The state recorded a seasonally adjusted annualized rate of 282,590 home sales, up 1.9% from September and 4.1% higher than a year ago.
Despite the uptick, sales remained below the 300,000-unit mark for the 37th consecutive month, highlighting the market’s ongoing challenges.
Market momentum builds, but headwinds persist
“Housing demand in California has been steadily improving, with home sales rising for the third month in a row,” said 2026 C.A.R. president Tamara Suminski.
“Even though mortgage rates have inched up since late October, the market remains active, and buyers still have solid opportunities. Home prices are growing at a manageable pace, and we’re seeing a healthier balance between buyers and sellers. As we head into 2026, these trends point to a promising moment for anyone considering a move in the California real estate market,” Suminski said.
The statewide median home price ticked up 0.4% from September to $886,960 in October, but was down 0.2% from a year earlier. That's the first annual decline in three months.
The median price per square foot slipped to $431 from $442 last October.
According to the National Association of REALTORS (NAR), 77% of metro markets, or 176 out of 230, posted price gains, up from 75% in the previous quarter.
The list of the most expensive markets remained dominated by California, with San Jose-Sunnyvale-Santa Clara topping the chart at $1.9 million, up 0.8% year over year.
“With the market easing into its seasonal slowdown, housing demand will stay soft, and California is likely to close out 2025 with only a modest uptick in home sales over last year,” C.A.R. senior vice president and chief economist Jordan Levine noted.
Lawrence Yun of the National Association of REALTORS® said U.S. home prices rose across most metros in Q3 2025, led by the Northeast and Midwest. He noted that southern price dips could offer second chances for buyers.https://t.co/aEdOKQHUos?
— Mortgage Professional America Magazine (@MPAMagazineUS) November 6, 2025
Regional and county trends diverged
All but one of California’s major regions posted year-over-year sales gains, with the Far North leading at 18%.
Southern California and the Central Valley saw moderate increases, while the Central Coast was the only region to decline.
At the county level, Trinity County surged 85.7% in sales, while San Benito dropped 18.4%.
Median prices rose in 23 counties, led by Santa Barbara’s 26.7% jump, but fell in 28 counties, with Tuolumne down 15.3%.
Inventory remained tight, with the Unsold Inventory Index at 3.2 months, down from 3.6 in September.
Homes took longer to sell, with a median of 32 days on market, up from 25 days a year ago. The sales-to-list-price ratio dipped to 98.3%, suggesting buyers had slightly more negotiating power than last year.
Broader context and outlook
California’s housing market remains sensitive to mortgage rate fluctuations and broader economic uncertainty.
The 30-year fixed mortgage rate averaged 6.25% in October, down from 6.43% a year ago, but volatility could keep some buyers on the sidelines.
While the recent uptick in sales offers hope, the market’s recovery is likely to be gradual. The state’s housing story continues to be shaped by affordability pressures, inventory constraints, and shifting migration patterns.
Meanwhile, the US housing market could finally be poised for a comeback in 2026, with the National Association of REALTORS (NAR) projecting a 14% surge in existing-home sales after a stagnant 2025.
The First American also expects the US housing market to make incremental progress in 2026, with affordability inching higher and regional differences persisting.
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