As California enters the summer of 2025, its housing market remains a paradox of record-breaking prices and tempered sales activity. According to a new analysis from Norada Real Estate Investments and recent data from the California Association of Realtors, the Golden State’s real estate landscape is defined by mixed signals, creating a complicated environment for both buyers and sellers.
Statewide, the median price of an existing single-family home hit a new all-time high of $910,160 in April — a 2.9% jump from March and up 0.7% from the previous year. It marked the 22nd consecutive month of year-over-year increases, although April’s annual gain was the smallest since mid-2023, suggesting that while prices are still climbing, the rate of growth is beginning to moderate.
Yet while prices rise, sales remain sluggish. April saw 267,710 existing home sales on a seasonally adjusted annualized basis — down 3.4% from March and 0.2% from a year ago. It’s the latest in a 31-month streak of sub-300,000 unit sales, a sign that elevated prices and high borrowing costs are still sidelining many would-be buyers.
Nationally, California’s housing costs remain in stark contrast to the rest of the country. While California’s median home price soared past $910,000, the national median in March was just $403,700. California’s 0.7% year-over-year growth also lags the national pace of 2.7%, further illustrating how the state’s housing dynamics are decoupling from broader national trends.
One key factor shaping this shift is rising inventory.
The state’s Unsold Inventory Index stood at 3.5 months in April — unchanged from March but notably higher than 2.6 months a year earlier. Total active listings hit a 66-month high, and new listings increased at a double-digit pace for the fourth consecutive month, giving buyers more options and reducing competition.
“There’s still strong demand in many regions,” the Norada report notes, “but the uptick in supply is creating more of a balance between buyers and sellers than we’ve seen in recent months.”
The median time on market also grew — from 16 days in April 2024 to 21 days last month — and the sales-price-to-list-price ratio held steady at 100%, indicating homes are generally selling for their asking price but taking longer to do so.
Heading into summer, California’s market appears to be inching toward balance. Sellers still hold the advantage in many areas due to limited inventory, but buyers now have more choices and slightly more leverage than a year ago.
For those looking to make a move, the coming months may offer a rare window of opportunity in a market known more for its volatility than equilibrium.
