I
f you're considering buying or selling a home in California, understanding the current market trends is crucial. A shift in the housing market has been observed, with 21 counties experiencing price drops from last year. Trinity County leads this decline with a significant 19.2% drop, followed by Mendocino (-15.0%) and Plumas (-14.6%). Let's dive into what's causing these changes and how you can leverage them.

    Several factors contribute to localized price drops:

    * Elevated mortgage rates make buying more expensive, decreasing buyer demand.

    * Economic uncertainty has potential buyers hitting pause.

    * Plateauing inventory means buyers have more options.

    * Seasonal trends can exert downward pressure on costs.

    Here are the 21 California counties with year-over-year price drops (July 2025):

    County | YOY Price Change

    Trinity | -19.2%

    Mendocino | -15.0%

    Plumas | -14.6%

    Del Norte | -13.0%

    Napa | -12.1%

    Nevada | -9.8%

    San Luis Obispo | -9.2%

    San Joaquin | -9.4%

    Contra Costa | -5.9%

    Kern | -5.6%

    Mariposa | -4.8%

    Calaveras | -3.6%

    Shasta | -3.7%

    Stanislaus | -2.1%

    San Bernardino | -2.2%

    Ventura | -2.3%

    Alameda | -2.3%

    Riverside | -1.5%

    Kings | -1.1%

    Sonoma | -0.5%

    Los Angeles | -0.4%

    If you're a prospective home buyer, especially in one of these 21 counties, now could be a good time to start looking seriously. With prices softening, you have more negotiation power and can afford to be pickier about finding the right property.

    For homeowners in these counties looking to sell, it's time to adjust your strategy:

    * Realistic pricing is key.

    * Highlight the positives of your property.

    * Consider offering incentives to attract buyers.

    * Be patient, as selling in a buyer's market may take longer than expected.

    Despite recent price drops, I believe California real estate remains a solid long-term investment. The state's strong economy and limited housing supply continue to drive demand. Any localized corrections often present opportunities for savvy buyers and investors.

    Beyond home prices, other market indicators suggest the market is cooling off:

    * Statewide home sales decreased 4.1% from July 2024.

    * Pending sales have slipped from last year’s level for the eighth consecutive month.

    * The median days it took to sell a home in July was 28 days, up from 20 days a year ago.

    The real estate market is constantly in flux, and understanding these dynamics is key to making informed decisions. While price drops may seem concerning, they're more a recalibration than a crash. Now is the time to gather your data, consult with experts, and consider your personal financial goals.