California’s housing market posted a modest rebound in October 2025, with home sales rising from both the previous month and a year ago, according to the California Association of Realtors (C.A.R.). The increase pushed the statewide pace of single-family home transactions to its highest level since February 2025, highlighting ongoing resilience in the face of mortgage rate volatility and economic uncertainty.
Closed escrow sales of existing, single-family detached homes in California reached a seasonally adjusted annualized rate of 282,590 units in October. This figure, which estimates the total number of homes that would sell in a year if October’s pace persisted, reflects a 1.9% increase from September and a 4.1% rise from October 2024, when 271,370 homes were sold. Despite the gains, statewide sales have remained below the 300,000-unit benchmark for 37 consecutive months.
Pending home sales–a forward-looking indicator–showed a 0.8% year-over-year increase in October, marking the third consecutive annual gain. However, month-over-month activity slipped 1.2% due largely to seasonal factors. At the county level, 26 counties saw pending sales improve compared with last year, while 24 counties recorded declines.
“Housing demand in California has been steadily improving, with sales rising for the third straight month,” said Tamara Suminski, 2026 C.A.R. President and a Southern California broker. “Even with mortgage rates creeping higher since late October, the market remains active, and buyers still have solid opportunities. Home prices are growing at a manageable pace, creating a healthier balance between buyers and sellers.”
Home Prices Stabilize, Modest Yearly Dip
The statewide median home price edged up 0.4% from $883,640 in September to $886,960 in October, bucking the typical seasonal decline of 1.4% observed in prior years. On a year-over-year basis, the median price fell slightly by 0.2% to $888,740, marking the first annual decline in three months, though prices remain near record highs set six months ago. Analysts warn that mortgage rate swings and economic uncertainty could continue to restrain broader market recovery.
“Mortgage rates, which briefly hit their 12-month low in October, have resumed an upward trajectory,” said Jordan Levine, C.A.R. Senior Vice President and Chief Economist, citing the Federal Reserve’s cautious approach amid the recent government shutdown. “As the market moves into its seasonal slowdown, demand is likely to soften, and California will probably close out 2025 with only a modest sales increase over last year.”
Regional and County Trends
Most regions posted year-over-year gains in October, with the Far North leading with an 18% increase, the only double-digit regional growth. Southern California rose 5.6%, the Central Valley 4.0%, and the San Francisco Bay Area 2.5%, while the Central Coast was the sole region to see a decline (-1.5%).
At the county level, 34 of 53 counties recorded annual sales gains, including 16 with double-digit growth. Trinity County led the surge at 85.7%, followed by Lassen (58.3%) and Kings (52.9%). Meanwhile, 18 counties saw sales declines, with San Benito (-18.4%), San Luis Obispo (-15.2%), and Tehama (-12%) experiencing the steepest drops.
Supply and Market Dynamics
Housing inventory followed its typical seasonal decline. The Unsold Inventory Index (UII) fell to 3.2 months in October, down from 3.6 months in September, indicating slightly tighter supply as listings tapered. Year-over-year, active listings increased 10.3%, the smallest growth since February 2024, reflecting six consecutive months of decelerating inventory growth.
The median number of days on market for California single-family homes increased to 32 days, compared with 25 days in October 2024, signaling a moderate slowdown in buyer absorption.
Price Variations Across Regions
Only two major regions posted annual median price gains: the Central Coast (+7.9%) and Southern California (+1.1%). The Far North experienced the largest drop at -3.8%, followed by the San Francisco Bay Area (-1.1%) and Central Valley (-0.2%).
At the county level, 23 counties saw rising median prices, led by Santa Barbara (+26.7%), Trinity (+22%), and Mono (+18.6%). More than half of all counties tracked reported declines, including Tuolumne (-15.3%), Lassen (-11%), and Del Norte (-9.9%).
Market Metrics and Mortgage Trends
- Statewide sales-price-to-list-price ratio: 98.3% (down from 99.9% in October 2024)
- Median price per square foot: $431, down from $442 year-over-year
- Average 30-year fixed mortgage rate: 6.25% in October, down from 6.43% a year ago
While October’s data suggests a cautiously improving market, analysts stress that broader economic conditions and mortgage rate volatility will continue to shape California’s housing trajectory heading into 2026.
