March 19, 2025: Home sales are down in California, and prices are rising, with a median home price of around $838,850, but housing costs are trending upward. Here’s a more detailed overview:

Key Trends & Statistics:

• Home Sales: Existing single-family home sales dipped by 10% in January 2025, down to 254,110, from 282,490 in December. 
• Price Trends: The statewide median price of an existing single-family home declined by 2.6% in January to $838,850 from $861,020 in December, but prices continued to climb on a year-over-year basis. 
• Inventory: The number of homes for sale rose 22.9%. 
• Affordability:Only 15% of California households could afford the median-priced home of $874,290 in the fourth quarter of 2024. 
• Unsold Inventory Index (UII):In January 2025, the statewide UII was 4.1 months, up from 2.7 months in December and 3.2 months in January 2024. 
• Days on Market:The median number of days it took to sell a single-family home in California was 35 days in January 2025, up from 32 days in January 2024. 

Factors Influencing the Market:

• High Home Prices: Sky-high home prices and stubbornly high mortgage rates are contributing to flat sales. 
• Housing Shortage: A persistent housing shortage and a competitive housing market continue to put upward pressure on home prices. 
• Interest Rates: Declining mortgage rates at the start of the year have led to a rebound in the California housing market. 
• Californians Looking Elsewhere: California has the highest percentage of people looking to buy elsewhere.