California’s housing market ended 2025 with sales edging higher, while home prices were generally lower than a year ago.
The statewide median price for an existing single-family home fell 1.2% year over year to $850,680 in December, according to data released by the California Association of Realtors. While prices softened, buyer activity rose 2% compared with December 2024.
It remains a buyer’s market for those who can absorb mortgage rates in the 6% range – or pay in cash. Inventory is high, and homes spent an average of 36 days on the market in December, 16% longer than a year ago.
According to real estate brokerage Redfin, the broader U.S. market saw 47.1% more home sellers than buyers in December — the widest gap on record dating back to 2013.
Jordan Levine, CAR’s chief economist, says the housing market has been “plagued by economic uncertainty” about interest rates and broader conditions.
Southern California sees sales surge
While the median single-family home price in Southern California was virtually flat year over year at $855,000, sales surged 13.5% in December.
Los Angeles County saw even more action, with sales soaring 20.2% month over month, even as the median price in the county fell 2.4% annually to $890,910, CAR data showed.
The Inland Empire, Central Valley, Central Coast and Far North regions also posted double-digit sales increases in December.
In contrast, the San Francisco Bay Area – the state’s most expensive housing market – saw both prices and sales fall significantly. The Bay Area’s median price dropped 5.9% from November to $1.2 million, while sales volume fell 9.3% month over month.
Condos and townhomes
The cooling trend was even more pronounced in the condominium and townhome market, often favored by entry-level homebuyers.
Statewide condo prices fell 4% year over year to a median of $638,000, which likely contributed to a 4.8% increase in condo sales. Both condo sales and prices were up month over month in December.
California Homes Sales & Prices (California Association of Realtors. December 2025)
Region
Median Price
Price MTM%
Price YTY%
Sales MTM%
Sales YTY%
CA Single-Family
$850,680
-0.4%
-1.2%
0.3%
2.0%
CA Condo/Townhome
$638,000
-3.3%
-4.0%
9.9%
4.8%
Los Angeles Metro
$807,540
-1.9%
-1.0%
15.0%
2.2%
S.F. Bay Area
$1,200,000
-5.9%
0.0%
-9.3%
2.0%
Southern California
$855,000
-0.6%
0.6%
13.5%
1.7%
Central Coast
$997,000
-3.4%
0.2%
11.3%
12.8%
Central Valley
$485,000
-1.6%
-1.4%
12.2%
5.5%
Inland Empire
$600,050
2.6%
0.9%
14.4%
4.0%
Far North
$380,000
-1.3%
2.8%
13.7%
23.5%
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