California Housing Market finds Footing in June.

California’s housing market is finally catching its breath. After three sluggish months, June brought a rebound in home sales and a flattening of sky-high prices—offering a more balanced playing field for buyers. Inventory is healthy, and sellers seem more open to negotiation. While rising mortgage rates still dampen demand, the month’s numbers suggest the market may be stabilizing.

Regional diversity remains a key feature - rural and coastal zones are faring better than valley markets - and wildfire-stricken areas like Altadena and Pacific Palisades are still reeling, with sharp declines in both sales and prices.

As summer closes, one thing is clear whether you're a buyer contemplating a new beginning or a seller navigating more realistic expectations, the June shift brings caution—but also opportunity.

According to the California Association of Realtors (C.A.R.), June's median home price landed at $899,560, holding steady from May but ~0.1% below both last month and June 2024 (when it was $900,720). This subtle stagnation contrasts with typical month-over-month gains (~0.8%), suggesting that elevated mortgage rates and market uncertainty are starting to temper price growth.

Regional activity revealed pockets of growth with some decline (C.A.R).

• North California led the charge +13.7% growth.

• Central Coast followed at +11.4% growth.

• Central Valley faced a slight dip 0.8% decline. 

• Southern California and the Bay Area showed modest gains - +1.9% and +1.0%.

• Nearly 39 out of 53 counties saw year-over-year increases in sales.

• Standouts included Kings (+87.3%), Glenn (+62.5%), and Humboldt (+45.5%)

What does this mean?

June shows a trend to a buyers market, or at least moving into more balanced territory, here's why.

• Inventory is up significantly with unsold inventory index reaching a 68-month high, and listings are up over 40% year-over-year. More homes on the market means less urgency and more choice for buyers. Inventory is a key indicator of market trends and how advantaged a buying versus selling market is.

• Price flattening although not necessarily good for ROI, does mean a shift towards affordability. Here C.A.R reported the median price barely changed month-over-month and is slightly below last year’s level. Normally, prices rise in June, so this stagnation suggests buyers are pushing back on inflated prices or even underbidding slightly.

• Sellers are negotiating! C.A.R. indicated a drop in the sales-price-to-list-price ratio to 99.3%, and median time on market increased to 24 days (up from 18). Sellers are taking longer to close and accepting offers below asking—a clear buyer advantage.

• Buyer sentiment is improving with buyers feeling more optimistic, especially with more inventory and tempered pricing—conditions that typically draw more serious buyers off the sidelines.

• Mortgage rates are still high but softening. Rates are down slightly from last year, which eases affordability concerns a bit, especially as prices are no longer accelerating.

  
  

the power dynamic is clearly shifting

So while it’s not a full-blown buyer’s market, the power dynamic is clearly shifting. If current trends continue—especially if rates ease further—buyers may gain even more leverage in the months ahead. And overall, this is a trend seen nationally. Obviously, we don't want to conflate weather with climate and your area may be impacted based on regional issues. The California fires are a good example of that.

The information provided in this blog is for general informational purposes only and does not constitute legal or financial advice. While striving to ensure accuracy, the content may not reflect the most current data, and it is not a substitute for professional council. You should consult a qualified professional for advice regarding your specific situation. Use of this information does not create an agent relationship and does not offer any guarantees, assurances, or protections from legal or financial liability.