California Home Sales Up 4.0 percent from 254,190 in May, Reversing Three Straight Months of Declines

Existing, single-family home sales totaled 264,260 in June on a seasonally adjusted annualized rate, up 4.0 percent from 254,190 in May and down 0.3 percent from 264,960 in June 2024.
June’s statewide median home price was $899,560, down 0.1 percent from May and down 0.1 percent from $900,720 in June 2024.
Year-to-date statewide home sales were up 0.2 percent.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 264,260 in June, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2025 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

June home sales activity rose 4.0 percent from the 254,190 homes sold in May and was down 0.3 percent from a year ago, when 264,960 homes were sold on an annualized basis. June’s rebound reversed three consecutive months of sales declines and was only one of two months of sales increases for the first half of 2025. The year-over-year decline marked the third straight decrease and was the first time since late 2023 that annual sales fell for three consecutive months. Year-to-date sales were barely above a year ago and could fall behind last year’s level in July if market activity remains stagnant.

Statewide pending sales in June slipped from last year’s level for the seventh consecutive month, posting the largest year-over-year drop since January 2025. With mortgage rates rising steadily in the past couple of weeks, housing demand will likely remain soft for the month of July.

“With more properties on the market and price growth flattening, conditions have become more favorable for prospective buyers who have been waiting on the sidelines to re-enter the market and take advantage of increased negotiating power,” said C.A.R. President Heather Ozur, a Palm Springs REALTOR®. “While sales could remain soft at the start of the third quarter, recent improvements in housing sentiment suggest that the market could see a bounce-back in the second half of the year.”

California’s median home price fell for the second straight month in June, slipping below the $900,000 mark for the first time in three months. The June median price of $899,560 was down 0.1 percent from May and also down 0.1 percent from $900,720 in June 2024. June’s 0.1 percent decline was not in line with the historical average gain of 0.8 percent, suggesting non-seasonal factors such as market uncertainty and elevated mortgage rates had a negative lingering effect on housing demand and home prices.

“While the California housing market has not yet fully transitioned to a buyers’ market, it is exhibiting increasing signs of being more balanced. Inventory levels continue to normalize, with active listings posting year-over-year gains and the time on market has lengthened compared to the prior year, indicating a deceleration in the pace of sales activity,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “Additionally, the proportion of homes closing above asking price has declined, reflecting a reduction in the intensity of bidding competition. As a result, sellers are demonstrating greater willingness to negotiate on pricing, concessions, and other terms, which creates more advantageous conditions for those considering a home purchase.”