#USA #California #California REALTORS #Pacific Palisades #Altadena Market

Overview

In June 2025, California's housing market witnessed a notable rebound, reversing three consecutive months of declining sales. The California Association of Realtors (C.A.R.) reported existing single-family home sales reached a seasonally adjusted annual rate of 264,260. This marks a 4.0% increase from May's figures, while also indicating a minor 0.3% decrease year-over-year from June 2024. The circumstances seem promising yet continue to reflect the challenges faced by the market, especially in areas affected by last year's devastating wildfires.

Market Conditions

Despite the rebound, California's median home price saw a slight drop to $899,560, dipping 0.1% from both May and June 2024. The year-to-date figures show home sales up 0.2% relative to the previous year, but there's a cautionary note as statewide pending sales continue to decline, marking the seventh consecutive month of yearly reductions. Rising mortgage rates could further soften demand as we enter July, posing a potential hurdle for continued recovery.

Heather Ozur, President of the C.A.R., highlighted that the surge in available properties and a plateau in price growth have created a more favorable environment for prospective buyers. Those who had been waiting on the sidelines may now have increased negotiating power as the market exhibits signs of balance over the previous buyer-centric conditions.

Effect of Wildfires on Housing Market

The regions of Altadena and Pacific Palisades, significantly impacted by January’s wildfires, are seeing drastic changes a few months later. Altadena witnessed a staggering 54.8% decrease in home sales, while Pacific Palisades experienced an 83.8% drop compared to the same timeframe last year. This downward trend in sales reflects buyer hesitance due to uncertainties surrounding the rehabilitation process, insurance dilemmas, and long-term property values.

Notably, the median home price in Altadena has plunged 39.1%, from $1,425,000 last year to $867,500 in 2025. Likewise, Pacific Palisades saw a decline of 23.7%, dropping from $3,310,000 to $2,525,000. This scenario underscores the effects of reduced demand and the influx of damaged homes requiring repairs, which has shifted buyer perceptions in fire-plagued areas.

Six months post-wildfires, many homeowners are opting to sell their damaged lots rather than pursue lengthy rebuilding efforts. This trend has led to a significant increase in the number of lots available for sale, up drastically to about 348 listed properties in Altadena, compared to just one in the same period last year.

Statistical Trends

Further data from C.A.R. indicates broad regional variances within the state. Notably, areas outside the fire-impacted zones are experiencing relatively stable sales growth. For instance, non-seasonally adjusted home sales surged in most of California's major regions, especially the Far North, which reported a 13.7% increase in sales.

Interestingly, around 39 out of 53 counties analyzed by C.A.R. recorded annual sales gains, with several counties reporting remarkable increases exceeding 10%. Kings County led with an impressive 87.3% jump in home sales over the previous year.

While overall inventory levels are steadily increasing, the unsold inventory index remained consistent at 3.8 months, indicating that while the demand is softening, there is an ongoing adjustment in the market dynamics, reflecting a balanced shift towards a more buyer-friendly environment. The median time to sell a home rose to 24 days, a clear indication that properties are taking longer to move off the market.

As we transition into the second half of 2025, the housing market's trajectory will depend significantly on ongoing trends in mortgage rates and buyer sentiment. Many industry experts maintain an optimistic outlook for a market bounce-back, supported by improving housing conditions and price stabilizations.