Rates eased and inventory rose, but California buyers still faced tight conditions
California’s housing market ended November with its strongest sales pace in more than three years, even as prices slipped and inventory ticked higher, according to the California Association of Realtors (C.A.R.).
Existing single‑family sales reached a seasonally adjusted annualized rate of 287,940. That's up 1.9% from October and 2.6% from a year earlier, marking the highest level since September 2022.
The statewide median price fell to $852,680 in November, down 3.9% month over month but essentially flat year over year. Year‑to‑date sales through November edged 0.9% higher, suggesting a fragile recovery after a long stretch of subdued activity.
Inventory rose to 3.6 months from 3.3% a year earlier, while days on market increased to 32 from 26, pointing to slightly more breathing room for buyers, particularly in higher‑priced coastal markets.
“California home sales reaching their highest level in more than three years is an encouraging sign that the housing market is continuing its recovery,” C.A.R. 2026 president Tamara Suminski said.
“While the sales growth remains gradual, the upward trend suggests that the market is slowly gaining momentum – good news for buyers, sellers, and real estate professionals alike.”
Southern California’s median price stood at $860,000, down 1.6% from October but 1.2% higher year over year, while the Los Angeles metro area came in at $823,000.
The San Francisco Bay Area remained the most expensive region at $1,275,000, off 1.9% month over month and 3.2% from a year earlier.
Central Coast prices reached $1,032,500, down 3.3% on the month but slightly above year‑earlier levels, while the Central Valley’s median eased to $490,000 and the Far North rose to $385,000.
Inland Empire homes carried a $585,000 median, reflecting modest annual price softening.
At the county level, 25 of 53 jurisdictions posted annual sales gains, with Trinity, Imperial and Mendocino leading with jumps of 60.0%, 46.7% and 43.3%, respectively. On prices, Del Norte, Tehama and Siskiyou recorded double‑digit annual increases, while Lassen, San Benito and Trinity saw the sharpest declines.
C.A.R. senior vice president and chief economist Jordan Levine framed the outlook as cautiously constructive. “Mortgage rates are expected to continue declining in 2026, but the decrease is unlikely to be dramatic,” he said.
“With the Federal Reserve signaling a more cautious approach to rate cuts and recent signs of economic slowing, California home sales and prices are projected to experience mild to moderate growth over the next 12 months.”
Levine previously said that “as economic uncertainty begins to clear up in the next 12 months and mortgage rates start declining more consistently in the upcoming quarters, housing sentiment will see some improvement in 2026.”
For now, November’s data captured a market still wrestling with affordability. The 30‑year fixed rate averaged 6.24% in the month, down from 6.81% a year earlier, while the statewide price per square foot dipped to $423 and the sales‑to‑list ratio softened to 98.3%.
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