📈 California Home Sales Rebound After 5-Month Slump

After five straight months of decline, California’s housing market finally saw a lift in September bringing a wave of optimism to both buyers and sellers statewide.

According to the California Association of Realtors (CAR), home sales jumped 5% from August and 6.6% year-over-year, marking the first annual increase since early spring. This turnaround follows a challenging summer where rising rates and affordability concerns cooled the pace of transactions across much of the state.

A Shift in Momentum

The statewide median home price in September came in at $883,640 — slightly down 1.7% from August, but still 1.8% higher than September 2024. While that modest dip month-to-month may seem like a slowdown, it actually signals a healthier, more balanced market where pricing is stabilizing rather than surging.

CAR’s Chief Economist, Jordan Levine, noted that the combination of steady mortgage rates and seasonal buyer demand helped boost activity. “The housing market showed modest improvement in September, with both sales and prices up from a year ago,” Levine said. He added that while economic uncertainty — from government issues to global trade tensions — may keep the recovery gradual, the market appears to be regaining its footing heading into the fourth quarter.

Where Sales Are Rising Fastest

Some regions of California are leading the rebound more dramatically than others:

• Central Coast: up 11.8% year-over-year

• Southern California: up 11.3% year-over-year

• Central Valley: up 10.2% year-over-year

• San Francisco Bay Area: up 9.8% year-over-year

  
  

The highest median price in the state was recorded in San Mateo County at $2.15 million, while the most affordable homes were found in Trinity County, where the median was $210,000.

What This Means for Buyers and Sellers

For buyers who’ve been sitting on the sidelines, this data suggests a window of opportunity, especially before potential rate fluctuations later in the year. With home prices leveling off and competition slightly easing in some regions, well-prepared buyers may find themselves in a stronger negotiating position.

For sellers, the rebound reinforces that demand remains resilient, particularly for homes priced correctly and presented well. Southern California’s double-digit sales increase is a good reminder that attractive listings in desirable neighborhoods are still moving fast.

After months of uncertainty, California’s housing market is showing new signs of life. Whether you’re buying your first home, investing, or planning to list your property, understanding these trends can help you make confident decisions as we close out the year.

If you’re curious how these shifts affect your local market let’s talk.