C
alifornia home sales edged up in August 2025, with closed escrow sales of single‑family detached homes at a seasonally adjusted annualized rate of 264,240—0.9% higher than July but 0.2% lower than August 2024. The figure remains below the 300,000 benchmark, marking the 35th consecutive month of sub‑threshold sales. C.A.R. President Heather Ozur said the rebound in pending sales—up 8.3% from July and 0.2% from a year ago—offers optimism, as mortgage rates fell to a 10‑month low, encouraging buyers who had been waiting for lower borrowing costs.

    Median home prices rose to $899,140, a 1.7% increase from July and 1.2% above last year, reversing three months of year‑over‑year declines. C.A.R. Senior VP Jordan Levine noted the market has found a short‑term balance between supply and demand, and that further rate cuts could sustain price growth into fall.

    Year‑over‑year sales gains were limited to the Far North and Central Coast; the San Francisco Bay Area, Southern California and Central Valley all fell. At the county level, 24 of 53 counties saw sales increases, led by Mariposa, Lassen and Kings; the largest declines were in Yuba, Calaveras and Tehama. Median price gains appeared in three of five regions: Central Coast, San Francisco Bay Area and Southern California; the Far North and Central Valley fell.

    Market fundamentals showed mixed signals. The Unsold Inventory Index rose to 3.9 months, active listings grew, and homes lingered longer on the market—median time of 31 days versus 22 days in August 2024. The sales‑price‑to‑list‑price ratio fell to 98.3% from 100% a year earlier. The 30‑year fixed mortgage rate averaged 6.59%, a modest increase from 6.50% in August 2024.

    Overall, the data suggest California’s housing market is inching toward equilibrium, with buyers reacting to lower rates and modest price recovery after a prolonged period of softness.