Key Highlights – March 2025 California Housing Market
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Home sales down 2.3% from February, but up 4.9% year-over-year
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Median home price surged to $884,350, up 6.7% from February and 3.5% from March 2024
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Pending sales fell for the fourth straight month, indicating softer demand ahead
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Unsold Inventory Index dropped to 3.5 months, but still higher than March 2024
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Active listings climbed for the 14th consecutive month
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Mortgage rate averaged 6.65%, slightly down from last year
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Median time on market: 22 days (up from 18 days last year)
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Sales-to-list-price ratio remained steady at 100%
California Home Sales Ease in March as Economic Jitters Weigh on Buyers
California home sales edged down slightly in March as concerns about the economy and rising tariffs weighed on both buyers and sellers, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
Closed escrow sales of existing, single-family detached homes totaled a seasonally adjusted annualized rate of 277,030, down 2.3% from February but up 4.9% from the same time last year. While the market continues its slow rebound, monthly sales have remained below the 300,000 threshold for more than 30 consecutive months.
As uncertainty around the economy builds and consumer confidence dips, particularly in light of tariff tensions, housing demand has begun to soften. This trend is also reflected in pending home sales, which declined for the fourth straight month in March.
“Home sales slowed in March as both buyers and sellers grew more concerned about the ongoing tariff situation and its potential impact on their personal finances,” said C.A.R. President Heather Ozur.
Prices Up, But Gains Remain Modest
Despite the slowdown in sales, prices continued to climb. The statewide median home price hit $884,350 in March, up 6.7% from February and 3.5% year-over-year. This marks the 21st consecutive month of annual price increases, although gains are beginning to level out compared to previous years.
“Although slower open-escrow sales point to a sluggish start for the spring season, increased inventory and modest price growth offer hope for buyers seeking more options and improved affordability,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine.
Regional and County-Level Insights
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Three out of five major regions saw year-over-year sales declines:
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Central Coast: -6.7%
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Far North: -1.2%
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Southern California: -0.4%
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Bay Area (+6.5%) and Central Valley (+2.5%) posted moderate annual increases
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31 of 53 counties reported higher sales compared to March 2024
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Siskiyou (+44.4%), Tehama (+40%), and Tuolumne (+40%) led the gains
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Del Norte (-61.1%), Trinity (-60%), and Mariposa (-48%) saw the sharpest drops
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Home prices rose in 39 counties, with Mendocino (+48.2%), Santa Barbara (+38.8%), and Tehama (+24%)showing the biggest year-over-year gains
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13 counties experienced price drops, led by Del Norte (-51.5%), Plumas (-27.5%), and Mariposa (-18.3%)
Inventory and Market Conditions
Inventory conditions slightly improved:
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Unsold Inventory Index (UII) dipped to 3.5 months from 4.0 months in February
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However, this was still up from 2.6 months in March 2024
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Total active listings rose year-over-year at the fastest pace since January 2023
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New listings jumped more than 20% from February, hinting at seller re-engagement
Other market metrics:
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Median time to sell: 22 days (vs. 18 days a year ago)
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Sales-to-list-price ratio: 100%
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Median price per square foot: $430 (up from $424 in March 2024)
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Average 30-year fixed mortgage rate: 6.65% (vs. 6.82% last year)
📊 View the full infographic: March 2025 Sales and Price Data »
