The California housing market is witnessing a surge in active listings.
As California heads into 2025, the housing market is witnessing a remarkable increase in active listings, with a year-over-year surge of 50%. Despite this upswing, the state remains 20% below pre-pandemic inventory levels. Certain regions, like San Francisco, are seeing greater inventory, while areas such as Orange County struggle with limited options. With the median home price rising to $884,350 and mortgage rates hovering around 6.83%, both buyers and sellers face unique challenges and opportunities in this evolving market.
California, the Golden State, is experiencing quite the shake-up in its housing market as we march into 2025. The latest reports indicate that active housing inventory is on the rise—*and how*! At the end of March 2025, California’s active listings surged by a staggering 50% year-over-year. This may bring a smile to the faces of homebuyers who have been feeling the pinch of limited options in recent years.
Taking a step back to look at the national scene, the whole country isn’t in the same boat just yet. As of March 2025, national active housing inventory is still running 20% below pre-pandemic levels seen in March 2019. However, there has been a delightful 29% increase in active listings across the nation when you compare March 2024 to March 2025. This suggests that while many areas are still feeling the heat, more homes are popping up for sale, giving hope to eager buyers eager to find their dream home.
Focusing again on our beloved California, despite the big jump in active listings, the state still has 20% fewer homes available compared to March 2019. Out of the state’s 36 major counties—those with at least 100,000 residents—only nine of these counties are boasting more active housing inventory than before the pandemic. The other 27 are still trailing behind, which might explain why some buyers continue to face challenges in their home search.
Interestingly, certain California markets are becoming havens for homebuyers. In particular, places like San Francisco are experiencing significantly increased active listings, giving homebuyers more power to negotiate. Meanwhile, regions such as Orange County remain on the tighter side of the inventory spectrum, which could keep prices high and options limited.
The *median home price* for California stands at $884,350 as of March 2025, marking a 3.5% increase from the same time last year. While this is certainly a jump, the good news for buyers is that the total number of active listings has reached a six-month high, signaling a continuous rise in housing supply—potentially offering respite from the bidding wars of the past.
To gauge how balanced things are in California’s housing market right now, the unsold inventory index (UII) shows a more harmonious relationship between supply and demand. This indicates the market is leaning toward a more balanced feel, which is a nice breather for buyers who have been grappling with soaring prices.
Now, what about those mortgage rates? Currently, the average rate for a 30-year fixed mortgage is sitting around 6.83%, which does play a substantial role in shaping affordability. As we look ahead, analysts predict that California will see existing home sales increase by 10.5% in 2025, totaling roughly 304,400 units sold. The median home price is expected to climb further by 4.6%, possibly reaching about $909,400 this year. That’s definitely something for both buyers and sellers to keep an eye on!
Now, for those who are contemplating buying a home in California, it’s essential to note that the housing affordability index remains low. Current projections suggest that only 16% of households can afford the median-priced home, a concern that continues to loom over the state’s housing landscape. Nonetheless, new laws aimed at boosting housing inventory, such as easing restrictions on building duplexes and streamlining Accessory Dwelling Unit (ADU) permits, might soon start making a difference.
In conclusion, while California’s housing market is showing promising signs of recovery with increased listings and a balance in supply and demand, it is clear that challenges remain. Homebuyers and sellers alike will want to stay vigilant, as this dynamic market continues to evolve.
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