California, September 18, 2025
News Summary
California’s housing market is facing severe challenges, with average prices hitting $775,058 and urban areas like Los Angeles seeing averages over $951,000. The age of first-time homebuyers is increasing, and many are relying on family assistance. A significant gap exists between sellers and buyers, with almost 500,000 more sellers in the U.S. due to economic uncertainties. Experts predict a possible 2.4% drop in home prices by March 2026, prompting calls for improved homeownership assistance in California.
California is currently facing significant challenges in its housing market, with average house prices reaching $775,058. In urban areas, such as Los Angeles, the average price jumps to over $951,000, making it the second most expensive state for purchasing a home, after Hawaii, according to Bankrate.
The median house price in California has seen a dramatic increase from $177,000 in 1995 to the inflation-adjusted equivalent of $381,500 today. This escalation has made home ownership increasingly difficult for many first-time buyers, who are often required to rely on family or friends for down payment assistance.
Moreover, the age of first-time homebuyers in California is climbing, with a study from UC Berkeley indicating a 10% decline in home ownership among those aged 35 to 45 since 2000. At the national level, there is a notable trend where sellers are outnumbering buyers: recent data shows there are almost 500,000 more sellers than buyers across the U.S. housing market as of April 2023.
The U.S. housing market has seen a 34% increase in sellers compared to buyers, marking the largest gap since at least 2013. Specifically, as of April, there were 1.9 million sellers but only 1.5 million buyers, resulting in a difference of 490,041. This disparity has prompted many sellers to reduce prices or offer incentives in order to entice buyers, given the dwindling competition.
In the Los Angeles area alone, the median sale price is approximately $900,000, with sellers currently outnumbering buyers by about 45%. Even as the number of sellers increases, potential buyers remain cautious due to high interest rates and general financial concerns.
The average rate for a 30-year mortgage reached 6.89%, the highest since early February 2023. Southern California has seen only modest home price increases, with prices rising a mere 0.38% month-over-month and an annual increase of only 1.9%, the smallest such increase since August 2023. This increase in inventory is largely due to homeowners deciding to sell despite the prevailing high mortgage rates.
Economic uncertainties such as inflation fears and trade wars continue to dampen consumer confidence and hinder housing demand. Experts anticipate that home prices in the L.A.-Orange County area may experience a drop of 2.4% by March 2026 due to rising inventory levels.
For those struggling with down payments, there are homeownership programs available to assist. A local fair scheduled for June 21 may provide up to $218,000 in assistance for eligible buyers. Additionally, apartment rents in Los Angeles have shown minimal increases, although recent disasters from fires could potentially alter rental market trends.
Key Statistics Overview
| Statistic | Value |
|---|---|
| Average House Price in California | $775,058 |
| Average House Price in Los Angeles | Over $951,000 |
| Median House Price in California (1995) | $177,000 |
| Median House Price Inflation-Adjusted | $381,500 |
| Buyer vs. Seller Gap in U.S. (April 2023) | 490,041 |
| 30-Year Mortgage Rate | 6.89% |
| Estimated Price Drop in L.A.-Orange County Area | 2.4% by March 2026 |
| Homeownership Assistance Available | Up to $218,000 |
FAQ Section
What is the average house price in California?
The average house price in California is $775,058.
How many more sellers than buyers are there in the U.S. housing market as of April 2023?
There are almost 500,000 more sellers than buyers in the U.S. housing market as of April 2023.
What is the average rate for a 30-year mortgage?
The average rate for a 30-year mortgage reached 6.89%.
What assistance is available for homeownership in California?
Homeownership programs are available to assist with down payments; a local fair may offer up to $218,000 in assistance.
Deeper Dive: News & Info About This Topic
- ABC7: Homebuyers May Have Upper Hand in Housing Market
- Wikipedia: California Housing Market
- Realtor: Los Angeles Home Prices Down in August
- Google Search: Los Angeles Housing Market
- New York Times: First-Time Buyers in Los Angeles
- Google Scholar: California Housing Prices
- LA Times: Housing Tracker for March
- Encyclopedia Britannica: California Housing Crisis
- Newsweek: California Faces Housing Crisis
- Google News: California Homeownership Programs
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
